Access to working capital is often the lifeblood for our small and emerging companies. Working with industry partners, investors, and public and private sector leaders, the Texas Coalition for Capital has become the premier resource in Texas for information on public and private sources of long term capital for entrepreneurs and emerging companies.
TEXAS EMERGING TECHNOLOGY FUND (ETF)
The Texas Emerging Technology Fund (TETF) was created by the Texas Legislature at the urging of Governor Rick Perry in 2005 and reauthorized in 2007. The TETF provides up and coming Texas technologies with the support needed to develop and commercialize new technologies, many of which have ties to universities. To date, the TETF has allocated $127.5 million dollars to Texas companies and partnering universities creating a deal flow infrastructure that will serve the state well for many years to come.
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SMALL BUSINESS & PRODUCT DEVELOPMENT FUND
The Texas Small Business Fund and Texas Product Development Fund provide funding for companies in the growth stage. This is a critical period when a company has received its early stage or seed money but hasn’t fully matured. The state has found a unique solution with the Texas Small Business Fund to support these companies during their growth.
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TEXAS LEVERAGE FUND
The Texas Leverage Fund (TLF) is a customer driven program, designed to provide communities a way to leverage local funds with state funds to assist small business expansions, business recruitment and export opportunities to position Texas as a globally competitive economic region. Introduced in 1992, the TLF provides an additional source of financing to communities that have adopted an economic development sales tax. Communities may leverage future sales tax revenues to support job retention or creation. Available for interim, long-term or gap financing, TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. Generally, EDCs are eligible to borrow four to five times annual sales tax revenues, up to $5 million.
TEXAS INDUSTRY DEVELOPMENT (TID)
The Texas Industry Development (TID) Loan Program provides capital to Texas communities at favorable market rates. The main objective of TID is to support projects that will stimulate the creation of jobs and corporate expansion and relocation. TID loans can be used for a variety of purposes, including the purchase of land, buildings, construction, machinery and equipment. TID financing is available for loans above $5,000,000. TID loans are generally requested by a community's economic development corporation, or EDC. TID Program loans are low cost, long term financing opportunities to cover costs of economic development projects. The term of the loan cannot extend beyond the useful life of the assets, or bond maturity in 2025.
CAPITAL ACCESS PROGRAM
The Capital Access Program was established to support the availability of financing for businesses and nonprofit organizations that face barriers in accessing capital or fall outside the guidelines of conventional lending. Borrowers must be a small or medium-sized business (499 employees or less), a nonprofit organization, or domiciled in Texas or having at least 51% of its employees in Texas to be eligible.
LINKED DEPOSIT PROGRAM
The Linked Deposit Program was established to encourage lending to historically underutilized businesses, child care providers, non-profit corporations, and/or small or medium-sized businesses located in an Enterprise Zone. Loans are subject to the lender's normal credit evaluation. Minimum loan amount is $10,000; maximum loan amount is $250,000 with the loan term for no more than the useful life of the financed asset. Participating lenders pay a lower interest rate on the linked deposit received from the State.
SMALL BUSINESS INNOVATION RESEARCH PROGRAM
SBIR encourages small business to explore their technological potential and provides the incentive to profit from its commercialization. SBIR targets the entrepreneurial sector because that is where most innovation and innovators thrive. However, the risk and expense of conducting serious R&D efforts are often beyond the means of many small businesses. By reserving a specific percentage of federal R&D funds for small business, SBIR protects the small business and enables it to compete on the same level as larger businesses. SBIR funds the startup and development stages and it encourages the commercialization of the technology, product, or service, which, in turn, stimulates the U.S. economy. Since its enactment in 1982, as part of the Small Business Innovation Development Act, SBIR has helped thousands of small businesses to compete for federal research and development awards.