Texas small business grants, loans and training funds (2026)
The Office of the Governor runs Texas's $472 million share of the federal SSBCI as loan guarantees and loan-loss reserves through participating lenders, and the Texas Workforce Commission pays community colleges to train small-business staff. The state has no general grant for starting a business, so this guide sorts every 2026 program by what it really is.
Figures apply to 2026
Contents10 sections
Key takeaways
- Texas has no state grant for starting a business; the Governor's financing page lists loans, incentives and training money instead 13.
- TSBCI does not give money to businesses: it guarantees up to 80% of a lender's loan or backs it with a loan-loss reserve 1.
- Skills for Small Business pays a Texas college up to $2,000 per new full-time hire and $1,000 per existing employee to train staff of firms with fewer than 100 employees 5.
- Texas's 2026 STEP export grant (up to $20,000) closed September 10, 2026, and AgPro closed May 14, 2026 89.
- The Product Development and Small Business Incubator Fund was repealed by HB 1515 (88-R) and is no longer available 3.
Quick facts
| State startup grant | None. Texas offers credit support, training grants and narrow targeted grants 13 |
|---|---|
| SSBCI allocation | $472,094,133 for Texas 4 |
| TSBCI loan sizes | $5,000 to $5 million (CAP); $5,000 to $20 million (LGP) 1 |
| Employer training grant | Up to $2,000 per new hire, $1,000 per incumbent (Skills for Small Business) 5 |
| Export grant | Up to $20,000, 10% cash match; 2026 round closed 8 |
| Free advising | Four SBDC networks, 50+ centers, consulting at no cost 12 |
Programs at a glance
| Program | Type | Help available | Status |
|---|---|---|---|
| Texas Small Business Credit Initiative (TSBCI) Loan Guarantee ProgramOffice of the Governor, Texas Economic Development & Tourism | Repayable loan (state guarantee) | State guarantees up to 80% of unpaid principal on loans of $5,000 to $20 million | Open through participating lenders |
| Texas Small Business Credit Initiative (TSBCI) Capital Access ProgramOffice of the Governor, Texas Economic Development & Tourism | Repayable loan (loan-loss reserve) | State matches lender and borrower premiums into a reserve on loans of $5,000 to $5 million | Open through participating lenders |
| Skills for Small BusinessTexas Workforce Commission | Grant (training paid to the college) | Tuition up to $2,000 per new employee and $1,000 per incumbent employee per 12 months | Open (rolling) |
| Skills Development FundTexas Workforce Commission | Grant (to a college or workforce board partner) | Up to $500,000 in customized training for one business; more for a consortium | Open (rolling) |
| State Trade Expansion Program (STEP)Texas Department of Agriculture with the U.S. Small Business Administration | Grant (cost reimbursement) | 90% of eligible export costs, up to $20,000 (Market Expansion) or $10,000 (New to Export) | Closed (2026 deadline was September 10, 2026) |
| Agriculture Production Resource Opportunity (AgPro) Grant ProgramTexas Department of Agriculture | Grant (cost reimbursement) | $5,000 to $500,000 for producer equipment and infrastructure, with cost share | Closed (2026 window April 1 to May 14, 2026) |
| Texas Enterprise FundOffice of the Governor, Texas Economic Development & Tourism | Grant (performance-based incentive) | Deal-closing grant tied to 75+ new jobs (25+ in rural areas) and capital investment | Open (rolling, by invitation of competitive projects) |
| Texas SBDC NetworkFour regional SBDC networks hosted by Texas universities and colleges, with SBA | Free service | No-cost one-on-one business consulting; low-cost training | Open |
As of October 2026, the Office of the Governor’s financing page for small businesses lists the Texas Enterprise Fund, the Texas Small Business Credit Initiative, the Texas Semiconductor Innovation Fund, the Governor’s University Research Initiative, the Texas Enterprise Zone Program, a micro-business disaster loan program and the Texas Workforce Commission’s Skills for Small Business. None of them is a grant you can use to open a business 13. The SBA’s position is the same at the federal level: it does not provide grants for starting or expanding a business 15. What Texas does offer is real, though. Lenders take more risk when the state backs the loan. Colleges train your staff on the state’s dime. And a few targeted grants open for set windows each year.
Sorting Texas programs by what they pay out
Most “Texas small business grant” lists mix four kinds of money. Before you apply, know which one you are dealing with:
- Credit support (you repay the loan). TSBCI’s Capital Access Program, Loan Guarantee Program and Loan Participation Program 1.
- Training grants (the money goes to a college, not to you). Skills for Small Business and the Skills Development Fund 56.
- Reimbursement grants with deadlines. STEP for exporters and AgPro for agricultural producers, both run by the Texas Department of Agriculture (TDA) 89.
- Large-project incentives. The Texas Enterprise Fund and the Texas Enterprise Zone Program, built for relocations and expansions with many new jobs 713.
Texas has no state SBIR/STTR matching or Phase 0 program on the Governor’s financing list 13. Technology firms should apply for federal SBIR/STTR awards directly, and an SBDC technology commercialization center can help with that.
How TSBCI’s $472 million reaches a borrower
Treasury allocated Texas $472,094,133 under the State Small Business Credit Initiative 4. The Office of the Governor received the first tranche of $134,488,297 on July 11, 2023, and splits the money between a $118 million Capital Access Program and a $354 million Loan Guarantee Program 3. Treasury’s list, current as of August 25, 2026, also shows a third Texas program, the TSBCI Loan Participation Program 2.
| Program | What the state does | Loan size | Who you deal with |
|---|---|---|---|
| Capital Access Program (CAP) | Matches lender and borrower premiums into a loan-loss reserve for the lender | $5,000 to $5 million | Participating bank or CDFI |
| Loan Guarantee Program (LGP) | Guarantees up to 80% of unpaid principal | $5,000 to $20 million | Participating bank or CDFI |
| Loan Participation Program (CDFI Direct Lending Program) | Lends to CDFIs at a fixed 1% for up to nine years; the CDFI matches 1:1 and relends | Set by the CDFI | Participating CDFI |
Scroll the table sideways to see every column.
Under CAP, the premium you and the lender pay together is 1% to 2.5% of principal for most borrowers. For very small businesses (under 10 employees) and businesses owned by socially and economically disadvantaged individuals it is 1% to 3.5%, and the state matches it 3. To qualify, a business must be for-profit, have fewer than 500 employees, and be domiciled in Texas or have at least 51% of its employees in the state 1.
Uptake has been slow. By the end of fiscal 2025, TSBCI had 20 participating lenders (14 CDFIs and 6 banks) and 88 enrolled loans: 52 under CAP and 36 under LGP 3. If your bank is not on the Governor’s participating-lender list, it cannot enroll your loan 1.
Training money from the Texas Workforce Commission
TWC’s two employer programs are the closest thing Texas has to a small-business grant, but the money pays for training only.
Skills for Small Business is for businesses with fewer than 100 employees. TWC pays tuition at your local community or technical college or at TEEX: up to $2,000 for each new employee (hired within the 12 months before TWC gets your application) and up to $1,000 for each existing employee, per 12-month period 5. Only full-time W-2 employees count. You pick courses from the college’s catalog, and you must pay the prevailing local wage when you apply 5.
The Skills Development Fund is for bigger, customized projects. You cannot apply directly. A public community or technical college, a local workforce board, TEEX or TEES applies with you as its partner, and the college must deliver at least half of the training 6. One business can receive up to $500,000. Consortiums of several businesses can receive more, and TWC cites an average cost of about $2,400 per trainee 6.
STEP and AgPro: the two TDA grants with fixed windows
Texas’s STEP export grant moved to TDA after the Governor named it the state’s STEP entity in July 2025 8. The 2026 round paid 90% of eligible export costs: up to $20,000 for Market Expansion companies and $10,000 for New to Export companies. You pay at least 10% yourself and get reimbursed only after spending the money 8. Applicants needed at least one year in business, a product or service made or value-added in Texas, a Texas-linked federal tax ID, good standing with the Comptroller and an active SAM.gov registration with a UEI. Applications closed in TDA-GO on September 10, 2026. TDA expects to announce awards in November 2026 for projects running through June 30, 2027 8. Start registering on SAM.gov early for the next round, since TDA warns it can take up to two weeks.
AgPro is for people already producing agricultural products commercially who earn at least half their gross income from farming or ranching. Awards ran from $5,000 to $500,000 with mandatory cost sharing and reimbursement-based payment 9. The 2026 window ran April 1 to May 14, 2026. TDA received more than 1,100 applications and plans to notify applicants by November 15, 2026. Any future round depends on legislative funding 9.
The Texas Enterprise Fund is a deal-closing incentive
The Texas Enterprise Fund (TEF) pays cash grants to established companies choosing between a Texas site and at least one out-of-state site 7. A project must create at least 75 full-time jobs, or 25 in a rural area, at or above the county average wage. It also needs significant capital investment and support from the city, county or school district. The company must not have already picked the site 7. TEF signed five agreements worth $13,327,350 in fiscal 2025, tied to 1,745 jobs 3. A new or very small business will not qualify.
Programs that ended or do not fund businesses directly
- Texas Product Development and Small Business Incubator Fund (PDSBI). House Bill 1515 (88-R) repealed it. Its bonds were redeemed in July 2023, and the state is winding down its last defaulted loan 3. Any site still listing PDSBI is out of date.
- Texas Capital Fund. This name for TDA’s CDBG economic development grants no longer appears in TDA’s fund list. The current categories are the Community Development Fund, the Downtown Revitalization Program (including the Main Street set-aside), Colonia funds and the State Urgent Need Fund 10. Only cities and counties can apply, and the money pays for public infrastructure such as sidewalks and lighting, not private businesses 10.
- Micro-business disaster loans. The Office of the Governor lends up to $8,000,000 at zero interest to CDFIs (funds available through August 31, 2026). The CDFIs then make interest-bearing loans to Texas micro-businesses with 20 or fewer employees after a declared disaster 11. As of the end of fiscal 2025, the four participating CDFIs had not submitted any applications, and SB 1361 (89-R) merged the program into the Small- and Micro-Business Disaster Recovery Program 3. This is a repayable loan, not a grant.
Working through a Texas SBDC and the Governor’s office
Texas’s SBDC network has four lead offices at universities and colleges and more than 50 field and specialty centers, and it has provided consulting at no cost for more than three decades 12. The four regional networks are hosted by the University of Houston (Gulf Coast), UTSA (South-West Texas), Texas Tech (Northwest Texas) and Dallas College (North Texas). The Governor’s Office of Small Business Assistance and Business Permit Office also help with permits and regulations and refer callers to financing 14.
Book a free SBDC consultation first
Use the SBDC locator to find the center for your county. Bring your business plan, recent financial statements or projections, and the amount you need. The adviser can tell you whether a TSBCI-backed loan, a TWC training grant or STEP fits.
Check the TSBCI lender list
Open the participating-lender list on the TSBCI page and contact one of the listed banks or CDFIs 1. Ask whether it will enroll your loan in CAP or LGP. The lender applies to the state, not you. Expect to pay a CAP premium of 1% to 3.5% of principal 3.
Apply for Skills for Small Business before you hire or train
Call TWC at 877-463-1777 or email [email protected]. Have your employee count (under 100), each trainee’s hire date, full-time status and wage, and the courses you picked from the college catalog ready 5.
For larger training needs, ask a college to sponsor a Skills Development Fund proposal
Contact the workforce or continuing education office at your community college. TWC business liaisons can help set up the partnership before the college submits 6.
Prepare for the next STEP round now
Register on SAM.gov, get a UEI and write a short export plan. Then watch TDA-GO for the 2027 request for applications, because late applications are not accepted 8.
Use the Governor’s portal for permits and referrals
Schedule a call through the Small Business Resource Portal if a license or permit is holding you up 14.
Reapply or switch programs if you are turned down
A lender’s TSBCI decision is a credit decision you can take to another participating lender. STEP and AgPro are competitive, so ask TDA ([email protected], 833-380-8282) how scoring worked and apply in the next round 89.
For other Texas assistance, see the Texas overview, or compare states on the small business grants hub.
Verified resources
Where to apply
- TSBCI program page and participating financial institutions list gov.texas.govPick a listed bank or CDFI and ask it to enroll your loan in TSBCI
- TWC Skills for Small Business twc.texas.govEmployer applies to TWC; questions to [email protected] or 877-463-1777
- Governor's Small Business Resource Portal gov.texas.govSchedule a call with the Office of Small Business Assistance
- Find your Texas SBDC (America's SBDC locator) americassbdc.org
- TDA-GO grant system (STEP, AgPro) texasagriculture.govWatch for the next STEP and AgPro application notices
Sources
- 1 Office of the Texas Governor, Texas Small Business Credit Initiative (TSBCI) Checked Oct 20, 2026 · Back to text ↑
- 2
- 3
- 4 U.S. Department of the Treasury, SSBCI Quarterly Report through December 31, 2025 Checked Oct 20, 2026 · Back to text ↑
- 5 Texas Workforce Commission, Skills for Small Business program and FAQ Checked Oct 20, 2026 · Back to text ↑
- 6 Texas Workforce Commission, Skills Development Fund Checked Oct 20, 2026 · Back to text ↑
- 7 Office of the Texas Governor, Texas Enterprise Fund Checked Oct 20, 2026 · Back to text ↑
- 8
- 9 Texas Department of Agriculture, AgPro Grant Program Checked Oct 20, 2026 · Back to text ↑
- 10 Texas Department of Agriculture, TxCDBG Fund Categories and Applications Checked Oct 20, 2026 · Back to text ↑
- 11 Office of the Texas Governor, Texas Micro-Business Disaster Recovery Program Checked Oct 20, 2026 · Back to text ↑
- 12 Texas Legislature, S.R. No. 316, 88th Legislature (Texas SBDC Network) Checked Oct 20, 2026 · Back to text ↑
- 13 Office of the Texas Governor, Financing and Capital for Small Businesses Checked Oct 20, 2026 · Back to text ↑
- 14 Office of the Texas Governor, Governor's Small Business Assistance Checked Oct 20, 2026 · Back to text ↑
- 15 U.S. Small Business Administration, Grants (SBA funding programs) Checked Oct 20, 2026 · Back to text ↑
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