Texas has the ninth-largest economy in the world, making it a great place for small enterprises. But even under ideal circumstances, obtaining a small business grant isn’t always simple.
You’ll need to spend a lot of time on your application and conduct extensive research to determine which business awards you qualify for. In the coming section, we have mentioned some of the available grants, however, speaking with a CPA is a must practice that you should follow to know about your eligibility and better planning.
Grants are available for small enterprises in Texas that need financial aid from the government and private organizations. Grants provide stability and sustainability in the long run, and it helps businesses prosper. Such incentives help those who dream but don’t have the means to accomplish the heights of success that they have the potential to achieve. Organizations in Texas highly believe in providing such grants to make these dreams alive.
Following are some grants for businesses in Texas to those in need:
It is a government grant that comes with the purpose of growing and supporting Texas agriculture. It is only available to profitable agricultural businesses, not to all regular landowners. It focuses on assisting those who qualify for financial assistance. This program is focused to help the community of agriculture to grow and leave a positive impact on society.
Anyone between the ages of 18 and 45 is eligible to opt for the young’s farmer program. The farmer is required to match the grant amount in this program on a dollar-for-dollar basis. The grant amount offered is up to $20,000. The person opting for the grant must be US-based and conduct business there.
It’s a government-based grant offered by Texas Workforce Commission (TWC) focused on investing in human capital by training new employees in small businesses. Under training offered by the Skills for Small Business initiative, businesses become more innovative, existing employees’ skills are upgraded, and newly recruited staff are ready to carry out their job description effectively.
The initiative helps companies to foster the present skills in their employees. A business can enroll its employees in the local technical colleges using TWC funding. Further, this program supports companies with less than 100 people. It covers tuition fees up to $900 for current employees and up to $1,800 for newly hired employees. Each employee is limited to one entry every year. To apply for this grant, you have to fill out the necessary document mentioned by the TWC.
The State Trade Expansion Program (STEP) Grant is a state-based grant which supports global business development initiatives to assist small enterprises in growing internationally. The program’s objectives are to increase the number of small businesses that are exporting and to encourage the businesses currently involved in exporting. The aim of this program is to boost the number of small firms that trade as well as the volume of exports for companies that already do so.
The grant amount is $10,000 but it requires that the business matches 25% of the grant in conjunction with the grant up to $2,500. The eligibility criteria must be considered that the businesses must be organized and operated in the U.S. It should be in business for at least one year, and understand the costs associated with exporting and conducting business transactions with foreign purchasers.
In partnership with AEO, the Fiserv + Clover Back2Business grant program focuses on black- or minority-owned small businesses and those affected by COVID-19. The business should be formed on or before January 1, 2021.
The grant amount is $10,000. The criteria to apply for this grant is that your business must have fewer than 11 employees and has less than $1 million in annual revenue and is located in Oklahoma, Texas, the greater Detroit area, or the Washington, D.C./Maryland/Virginia metropolitan area. The individual seeking the grant must be 18 years older or above.
It is a private grant which is basically an emergency relief program that provides emergency funding to those associated with restaurants or bars. You can also claim this grant if you are employed by a restaurant or bar supplier facing unforeseen circumstances that cannot be covered by insurance. The main tagline of this program is “taking care of our own” meaning looking out for our community which is struggling.
The grant amount depends on the need for funds by the business. The idea of this relief program is to empower the community as a whole. Hence, these untapped sectors can provide the backing wheel for the economy to thrive for a better tomorrow.
Small Business Emergency grant program has been established by the Fort Bend County Commissioners Court to help companies affected by COVID-19. By December 30, 2019, these companies must be completely functional. For 2019–2020, you must demonstrate a revenue reduction of at least 25% and present two years’ worth of finished tax returns.
You can easily get a grant of up to $25000 dollars if your small business is not doing well, but at the same time, it holds a certain capacity to receive additional funds if you are eligible for it.
The Texas Enterprise Fund awards “deal-closing” grants to companies considering a new project. In TEF, one site in Texas should be actively competing with at least one credible out-of-state site that includes facility opening or expansion with considerable estimated job creation and capital investment.
The fund aims to add new employment opportunities to the state’s economy and increase competitive projects. Projects that are eligible must create at least 25 full-time jobs in rural areas or 75 full-time jobs in metropolitan areas. In the county where the project will be located, wages must be equal to or higher than the average. The government in the area where the initiative will be implemented must also support the project.
Recently, the Alamo Small Business Grant Program was launched as a tool to assist small businesses with minor costs. The Alamo Small Business Grant is only available to companies that are physically situated in Alamo, Texas. It is mandatory that the business should be in operation for 24 consecutive months.
It gives grants up to $25,000 for reimbursements. The proprietor of the business must also hold a yearly lease. If you are eligible, you must submit the Alamo Small Business Grant Application together with a written description of your project and business. Additionally, you will have to present your tax returns for the last two years as well as any lease agreements that your landlord has signed.
The Texas Enterprise Zone Initiative (EZP), a state grant that refunds sales and uses taxes, aims to promote private investment and the creation of jobs in the state’s economically depressed districts.
The maximum refund varies depending on the capital investment and the maximum number of employments that may be assigned. To receive this grant, your business must be located within an Enterprise Zone to be eligible for the return, which is handled by the Texas Comptroller’s office.
The Amber Grant is for all American women entrepreneurs. It provides a $10,000 monthly prize to one exceptional female business owner. You will be eligible to receive an additional $25,000 grant at the end of the year if you are chosen as one of the 12 monthly winners.
The only qualifications for an Amber Grant are that candidates be at least 18 years old and that their business is owned at least 50% by women. Filling out a brief online application form is all that is required to apply for an Amber Grant. You must include information about your company and a description of how you plan to use the grant funds in your application.
In addition to the grants mentioned above, following are the small business grants that you can take advantage of:
The list does NOT end here. There are many other grants that we can count on the list as well. We’d highly recommend that you to talk with a Texas CPA, so he/she can understand your business and let you know of available grants that you can claim.
One of the advantages of starting a new business in Texas is that you will be exposed to an array of grants and tax incentives for small businesses in the state. Every firm has a start-up expense, and this expense varies depending on the kind of economic activity and structure.
However, claiming these grants is NOT always easy. You may have to go through a detailed process of legalities. We’d recommend talking with a CPA who holds years of expertise while working with businesses and can save you money as well.
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For assistance in planning and transferring your U.S. assets to Canada, please contact our colleague Phil Hogan, CPA, CA, CPA at (250) 661-9417 or phil@philhogan.com
