Financing and Capital for Small Businesses

The Governor’s Office of Small Business Assistance works closely with a variety of partners to facilitate small businesses accessing capital. Key funding sources include:

U.S. Small Business Administration

The U.S. Small Business Administration (SBA) provides counseling, capital and contracting expertise. It offers loans and training to help small businesses to grow and optimize opportunity. It also provides disaster loans during times of crisis. The SBA has six offices in Texas. For more information, please visit the below links to each district office:

• Dallas/Fort Worth
• El Paso
• Harlingen
• Houston
• Lubbock
• San Antonio

Non-Profit Lenders

Community Development Financial Institutions (CDFIs) are non-profit lenders. They offer favorable terms, such as low interest rates, as well as advice, mentoring and workshops. They focus on lending to disadvantaged businesses and entrepreneurs. Some non-profit lenders in Texas include:

• BCL of Texas 
• LiftFund 
• PeopleFund 

Find your nearest CDFI using the online locator.

Texas Small Business Credit Initiative

The Texas Small Business Credit Initiative (TSBCI) seeks to foster small business development and job creation by enhancing access to capital. This program focuses on providing resources for small businesses, with a particular emphasis on helping traditionally underserved businesses and those affected by the COVID-19 pandemic. Small businesses obtain funding through loans from financial institutions, and TSBCI works with financial institutions to support this process. 

With an allocation of $472 million, TSBCI represents a significant investment in Texas' small business ecosystem. The State of Texas is actively monitoring updates from the U.S. Department of the Treasury to ensure optimal implementation of this initiative. 

Texas Micro-Business Disaster Recovery (MBDR) Loan Program 

The Texas MBDR Loan Program provides zero-interest loans to eligible CDFIs for purposes of making interest-bearing loans to qualifying micro-businesses that have difficulty in accessing capital following a declared disaster. All income received on a loan made by a CDFI participating in the program is the property of the financial institution. Income received on a loan includes the payment of interest by a borrower micro-business and the administrative fees assessed by the CDFI.

Texas Workforce Training Grants

The Texas Workforce Commission (TWC) offers the Skills for Small Business grant. This supports businesses with fewer than 100 employees and incentivizes training for new, full-time workers. Support is also available to upgrade the skills of existing full-time workers. Training is provided through community or technical colleges, or the Texas Engineering Extension Service (TEEX). 

Federal Grants

Grants.gov catalogs federal grants and provides additional information for those interested in applying. Some grant providers require applicants to register on The System for Award Management (SAM). For research and development focused businesses, the Small Business Innovative Research and Small Business Technology Transfer Funding programs may be of interest.

United States Department of Agriculture (USDA)

USDA’s business programs provide financial backing and technical assistance to stimulate rural business creation and growth. Loans, loan guarantees and grants are available to individuals, businesses, cooperatives, farmers and ranchers, public bodies, non-profit corporations, Native American Tribes and private companies in rural communities. For more information, please visit the USDA website.

Managing Cash-Flow

SCORE provides excellent information on financial management for small businesses and many templates for cash-flow spreadsheets and projections. You can also get a SCORE mentor, at no cost, to help you with business challenges.

The SBA also offers a guide on advice and tools for managing business finances.