Product Development and Small Business Incubator Fund

The Product Development and Small Business Incubator Fund offers long-term, asset-backed loans to near-bankable businesses commercializing new or improved products and small businesses or entities which foster growth of small businesses. The program targets those businesses which may be unable to obtain full financing or financing on workable terms in traditional capital markets.

Who Can Apply?

Near-bankable businesses commercializing new or improved products in the state, small businesses, small business incubators and accelerators, and other entities which promote the development and expansion of small businesses it the areas of semiconductors, nanotechnology, biotechnology, or biomedicine. Products in the research and development phase are ineligible for funding. Applicants must have at least 3 years of operating history and at least 1 year of revenue history.

Type of Incentive

Long-term, asset-backed loans fully secured by tangible assets, not to exceed $5 million. Interest rates on all loans are variable and generally below-market, comprised of a low weekly variable rate plus a risk premium determined by the Governor’s Office. Loan terms are capped based on use of funds, but are ultimately determined by staff in consultation with individual applicants. Loans can be flexibly structured based on the unique needs of applicants.

Eligibility Details

  1. Small businesses applying under the Small Business Incubator Fund must be domiciled in the State of Texas or have at least 51% of their employees located in the state, employ fewer than 100 full-time employees, and, if for-profit, be independently owned and operated.
  2. Loans must be fully secured by unencumbered tangible assets at a maximum Loan-to-Orderly Liquidated Value ratio of 1:1.
  3. Loans must be used for capital purchases or working capital infusions.
  4. Applicants must meet certain financial ratios.
  5. Preference is given to those businesses with the greatest likelihood of commercial success, job creation and job retention in the state.
  6. Third parties may serve as guarantors.

Program Overview


This rolling application process is further detailed by the image below:

Category: TX State Programs

Economic Development & Diversification In-State Tuition for Employees is a program that allows employees—and those employees’ family members—of a qualified business considering a relocation or expansion of its operations in the State of Texas to pay in-state tuition rates at public institutions of higher education...
Learn More
Industrial Revenue Bonds (IRBs) provide a source of tax-exempt or taxable bond finance for projects involving significant private activity that promote new and existing businesses, encourage employment, and expand the tax base of a community. IRBs are issued by Industrial Development Corporations sponsored by a...
Learn More

The Self Sufficiency Fund provides training grants for industry recognized certificates and credentials that lead to permanent full-time employment.

Learn More
OverviewThe Skills Development Fund is Texas' premier job-training program providing local customized training opportunities for Texas businesses and workers to increase skill levels and wages of the Texas workforce. The Texas Workforce Commission administers funding for the program. Success is achieved through collaboration among businesses,...
Learn More
Beginning September 1, 2003 an enterprise project is eligible for a refund for state sales and use taxes paid for building materials, machinery and equipment, electricity and natural gas purchased and consumed in the normal course of business and depending on investment amount and number...
Learn More
The Texas Capital Fund Infrastructure Program is an economic development tool designed to provide financial resources to non-entitlement communities. Funds from this program can be utilized for public infrastructure (water, sewer, roads, etc.) needed to assist a business, which commits to create and/or retain permanent...
Learn More
The Texas Capital Fund Real Estate Development Program is designed to provide financial resources to non-entitlement communities such as Seguin. Funds must be used for real estate development (acquisitions, construction and/or rehabilitation) to assist a business, which commits to create and/or retain permanent jobs, primarily...
Learn More
The Texas Enterprise Fund (TEF) awards “deal-closing” grants to companies considering a new project for which one Texas site is competing with other out-of-state sites. The fund serves as a financial incentive for those companies whose projects would contribute significant capital investment and new employment...
Learn More

The Texas Enterprise Zone Program (EZP) is a state sales and use tax refund program designed to encourage private investment and job creation in economically distressed areas of the state.

Learn More
Add to Report View Custom Report