10 Best Small Business Grants in Texas

Texas is one of the top states for small businesses, now with over 3 million calling it home. Even with a favorable business environment, it’s not always easy for small businesses to find the right funding—whether because of high interest rates, selective eligibility criteria, or a lack of options. 

On the bright side, Texas has numerous grant programs that might just provide the capital you need. 

How do small business grants work?

Small business grants are financial awards that don’t need to be repaid. Government agencies and private organizations offer small business grants, each with its own requirements, award amount, and application process. 

After the application window closes, the grant program reviews all applicants and selects a recipient(s). Typically, the money must be used for specific purposes, such as equipment purchases, building upgrades, or other business needs. 

Types of small business grants

Texas small business owners can apply for different types of grants, including the following: 

Federal business grants

Federal government agencies like the Environmental Protection Agency (EPA), Department of Health and Human Services (HHS), and Small Business Administration (SBA) offer grants to support specific initiatives. Generally, these programs fund projects that serve the public interest (e.g., environmental conservation or rural development). 

Business owners can search for these opportunities on Grants.gov, though availability in Texas may vary depending on the program. 

State business grants

Various Texas government agencies have their own grant programs, many of which we’ll highlight in the next section. Texas cities and counties also offer small business grants to support local business development, job creation, or other goals within the area.

In addition to researching programs in your region, you can connect with one of Texas’ six SBA offices to learn about funding opportunities for your small business. 

Research and development grants

While usually competitive, research and development grants are one of the largest sources of funding for STEM projects.

For instance, these grant programs typically fund initiatives like medical research, clean energy development, and similar advancements. You can also find options through America's Seed Fund, such as the Small Business Technology Transfer (STTR) and Small Business Innovation Research (SBIR) opportunities.

Moreover, you can find research and development grants through the federal government, Texas state institutions, and private organizations. 

Nonprofit and community development grants

These grants support organizations and businesses that serve community needs, such as childcare centers and special education programs. These programs can come from both public and private funding sources, depending on the purpose of the grant. 

While some grants only accept applications from Texas nonprofits, others are available to any business that provides essential services to their community. 

Industry-specific grants

Industry grants focus on particular fields or occupations, including agriculture, technology, manufacturing, and healthcare. Many of these opportunities intersect with other grant categories (e.g., research grants for medical innovations) and are meant to address specific challenges within your field. 

Private business grants

Private companies and organizations create their own grant programs, whether for a specific purpose or just to promote general business growth. For instance, some private business grants specifically focus on businesses with less than a certain number of employees or entrepreneurs who embody the program’s values. 

10 best Texas small business grants for 2025

We’ve researched and found the top small business grants in Texas, but make sure you follow the most up-to-date information provided on each program’s website. Many of these grants have several application windows throughout the year, so the details may change month-to-month. 

1. Rural Business Development Grant

Offered by the U.S. Department of Agriculture, this program funds economic development and job creation in rural communities. You can either apply for an enterprise grant for targeted business development or an opportunity grant for community economic projects (applications accepted annually).

Where to apply: U.S. Department of Agriculture

Award amount: $10,000 to $500,000

Eligibility requirements:

• Rural cooperatives, state/local government agencies, nonprofit organizations, higher education institutions, and federally recognized tribes are eligible to apply
• Must benefit rural areas outside of urbanized areas
• Must have fewer than 50 employees and less than $1 million in gross revenue

2. Texas Commission on the Arts (TCA) Grants

The TCA is a state agency that provides funding for arts and cultural activities across Texas. Dozens of grants are available in 2025 to promote public access to the arts, from performing in museums to placing new logos on public buildings. 

Where to apply: Texas Commission on the Arts

Award amount: Varies by program category ($1,000 to $90,000 or more)

Eligibility requirements:

• Must be a tax-exempt nonprofit or government entity
• Have no outstanding obligations to Texas, such as taxes
• Must establish eligibility before the deadline and comply with all applicable federal grant regulations 

3. The Skills for Small Business Grant 

This is an ongoing program to help businesses in Texas train new and existing employees through community and technical colleges. Businesses can choose from various training courses, such as sales, marketing, customer service, and others. 

Where to apply: Texas Workforce Commission 

Award amount: $2,000 per new employee, $1,000 per incumbent employee

Eligibility requirements:

• Must have fewer than 100 employees
• Full-time employees only
• Training must be job-related
• Must pay prevailing wages in the local market

4. State Trade Expansion Program (STEP)

Administered by the Texas Department of Agriculture (TDA), this grant is meant to help small businesses start exporting their products or expand into new international markets. This program is typically offered annually, and you can sign up for notifications when the program renews if it’s not currently open. 

Where to apply: Texas Department of Agriculture

Award amount: Varies 

Eligibility requirements:

• Meet SBA size standards
• Must be a for-profit company that’s been in business for at least one year
• The export must originate from the U.S. or be at least 51% U.S. content
• Must be new to exporting or expanding to new markets with a clear strategy in place

5. Young Farmer Grant Program

This is another TDA program that supports new and expanding agricultural operations specifically for young farmers. The grant aims to grow Texas agriculture while supporting projects that benefit the farmer and their community (not intended for hobby farming). 

Where to apply: Texas Department of Agriculture

Award amount: $5,000 to $20,000 

Eligibility requirements:

• Age 18-46 at application deadline 
• Must be creating or expanding an agricultural operation (not an existing one)
• Must provide matching funds

6. StartHER Grant

Texas Woman’s University offers this annual grant to startups and businesses owned by women. The recipients can use the funds to grow their businesses, including equipment purchases, business certifications, marketing costs, and others. 

Where to apply: Texas Woman’s University

Award amount: $5,000

Eligibility requirements:

• Woman-owned Texas businesses (51% ownership or more) with five or fewer employees are eligible to apply
• The business must be an official for-profit entity that’s less than five years old 
• Must be in good standing with all state taxes and licenses

7. Texas Enterprise Fund

This performance-based grant program aims to attract new facilities and business operations to Texas when the state is competing with out-of-state locations. Established companies planning significant job creation and capital investment projects in the state can submit applications year-round. 

Where to apply: Texas Economic Development and Tourism

Award amount: Varies based on the number of jobs created and average wages offered

Eligibility requirements:

• Create at least 75 jobs in urban areas or 25 in rural areas and offer wages at or above the county average
• Be an established company in an advanced industry
• Have local community support for the development project

8. San Antonio Economic Development Grants

San Antonio offers various programs for local businesses, from construction zone assistance to minimizing noise pollution. Be sure to review the opportunities regularly, as the city updates programs and grants as they become available. 

Where to apply: San Antonio Economic Development Department

Award amount: Varies by program

Eligibility requirements:

• Located within San Antonio
• Business must be legally established
• Good standing with city taxes and fees
• Meet other requirements outlined in the specific grant program

9. Dayton Community Development Corporation Grants

The City of Dayton has several grant programs focused on downtown revitalization and business improvement. Programs include support for facility improvement, signage updates, and property renovations. 

Where to apply: Dayton Economic Development Corporation

Award amount: Varies by program (50% matching funds required) 

Eligibility requirements:

• Located in Dayton
• Compliance with local building codes
• The project must improve the business' appearance or function 

10. Small Business Boost 

Thanks to a partnership between the Houston Texans and Amegy Bank, this program provides financial support to small businesses in the Houston area. While nominations are currently closed, this program typically opens annually for new applications. 

Where to apply: Houston Texans

Award amount: $5,000 and other perks 

Eligibility requirements:

• Located in the Houston metropolitan area
• Independently-owned for-profit company
• Total annual revenues below $20 million 

How to apply for a small business grant

While all grant programs in Texas have different requirements and applications, you can start to apply for funding by following these steps: 

Step 1: Create a list of relevant grants

As you research possible grants for your small business, you should keep a record of the ones you might apply for in a document or spreadsheet. Make sure to include key information like the program requirements, award amounts, and any application windows or deadlines. 

Step 2: Double-check eligibility requirements

Next, spend some time reviewing all the grants you’ve recorded and determine which ones are worth pursuing. While it’s tempting to apply for every available grant, focus your energy on programs where you align with the funding goals and meet all requirements. You might also contact the grant organizer if you have any specific questions or need technical assistance.

Step 3: Prepare the required documentation

Once you’ve narrowed down your options to the most promising grants, gather all required documentation for each application. Most grants need basic business information, financial statements, tax records, or proof of eligibility. Make sure to keep track of your progress for each application and give yourself plenty of time to submit them before the deadline. 

Step 4: Tell your business' story

There’s a high chance you’ll need to speak to your business’ potential and why you deserve the grant. This might be a personal essay, business plan, interview, or series of questions submitted to the review panel, among other mediums that tell your story. 

You want to be specific and clearly show why you’re an ideal candidate for support. It’s often helpful to ask someone to read your application and offer advice, as you want to know exactly how your story comes across to others. 

Step 5: Submit your application

Before hitting submit, review your application for accuracy and confirm that it’s complete. Pay attention to specific submission formats or requirements, and try to submit well before the deadline to give yourself a buffer in case of any technical issues. 

Step 6: Follow up (if necessary)

As you wait to hear back, be prepared to respond to any requests for additional information. If you don’t hear back within the stated window, you should contact the organization behind the grant for an update. 

If awarded, you might also need to provide detailed records of how you use the funds, especially for government grants. 

Small business grant vs. business loan: How are they different?

Grants are essentially awards that don’t require repayment, though they usually come with specific requirements about how the money must be used. On the other hand, loans need to be paid back (usually with interest). Still, it’s often easier to find and secure small business funding through loans, whether from the SBA, Texas banks, or other lenders.

In addition, loans typically offer more options for how you can use the funds and are available year-round, unlike many grant programs with limited application windows. 

FAQs

What other types of financial assistance are available for small businesses in Texas?

Besides grants, Texas businesses can apply for traditional bank loans, SBA-backed financing, business lines of credit, and private funding. Some businesses also get funding from friends or family, usually formalized with a promissory note. 

Do you have to pay small business grants back in Texas?

Grants don’t make you repay the money, but they do require compliance with program terms. Most grant programs (especially ones funded by the government) monitor how you use the funds and may request repayment if you don’t meet the stated requirements or use the money as intended. 

What can you use a small business grant for?

What you can use grant money for ultimately depends on the program’s terms. Some grants support general business expenses like inventory or equipment, while others target specific purposes like employee training, facility improvements, or diversity initiatives. 

Can immigrants get money to start a business in Texas?

Yes, immigrants with proper work authorization or permanent resident status can generally access various funding options, including SBA loans and Texas grant programs. Private organizations might also offer programs specifically for immigrant entrepreneurs, so it’s best to research opportunities for your business goals or background.