Incentives

Cash Grant Combined With a Financing Program

  • New Market Tax Credits (call us to determine if the location you are considering will qualify for this incentive as only some parts of Galveston County qualify)
    • Financing Component:
      • Projects which will have a significant economic impact and invest more than $5 million should consider this option.
      • Financing provides for interest only payments for 7 years.
      • At the end of Year 7, the principal on the note is due and is typically refinanced into a traditional loan with approximately 20% of the debt being forgiven if the project has hit its goals.
  • Cash Grant Component
    • At the end of Year 7, if you have hit your goals, approximately 20% of the debt associated with the project is forgiven.

Cash Grants

  • State of Texas Enterprise Fund
    • “Deal Closing Fund”
    • The better the project, the more likely you are to qualify for this cash.

Workforce Training

  • Texas Skills Development Fund
    • Up to $1,500/employee for customized training through a local college.
  • On-The-Job Training Cash
    • Businesses may be reimbursed for up to half of a new employee’s wages while the employee learns the job, on the job, for up to 6 months.
  • OJT Participant Criteria
    • New employees covered by an OJT agreement must be unemployed or underemployed.
  • Training Rules
    • Reimbursement depends on the wages paid to new employees and the length of training.
    • The length of training is negotiated based on the skills necessary to perform the job(s) and the new employees’ existing skills.
    • Limited to no more than 50% of the total workforce or new hires.
    • The maximum length of training is limited to no more than six months or 1040 hours.
    • Businesses that relocate and lay off workers at another location may not receive an OJT for 120 days after relocating.

Tax Incentives

  • Sales and Use Tax Refunds
    • Texas Enterprise Zone Program
    • Up to 5 years of refunds
  • Freeport Exemption
    • Total exemption for personal property, excluding petroleum products, which is detained in this state for a temporary period (175 days or fewer) for assembling, storing, manufacturing, processing or fabrication purposes.

Financing Programs

  • USDA Rural Development (call us to determine if the location you are considering will qualify for this incentive as only some parts of Galveston County qualify)
    • Business and Industry Loan Guarantee
      • Loan guarantee up to $25 million to lenders for loans pertaining to business real estate, buildings, equipment, supplies, working capital, and debt refinancing.
      • Lenders and borrower negotiate terms: Up to 30 years for real estate, 15 years for machinery and equipment, and 7 years for working capital.
      • Loan guarantee for up to 80% of the loan should get your company a better interest rate from the lender.
        • Guarantee is up to 80% for loans of $5 million or less
        • Guarantee is up to 70% for loans between $5 and $10 million
        • Guarantee is up to 60% for loans between $10 million and $25 million
  • Rural Business Development Loan and Grant program which is run through the local utility organization
    • The utility borrows the money for 10 years at 0% interest to create a revolving loan fund which they can lend to your project.
    • Money can be used for: Business expansion needs, fixed assets, real estate, buildings, equipment, or working capital.
    • Up to $1.3 million may be requested ($300,000 grant and $1 million loan)
  • SBA Microloans
    • Up to $50,000 used for: working capital, inventory or supplies, furniture or fixtures, and/or machinery or equipment
    • Maximum term is six years
    • Typical rates are between 8 and 13 percent
    • Other Loans available through local banks for assistance in acquiring, operating, or expanding a business.

Source of Business and Labor Numbers: The Next Move Group