It is ultimately the EDC Board's decision whether the applicant is given a low-interest loan or a grant as an incentive. The process begins when the applicant fills out and returns an Application for Assistance.
The Development Corporation Act allows Type B EDCs to provide incentives for projects related to creation or retention of primary jobs that are normally Type A projects. However, the Act allows more flexibility with the projects that a Type B EDC can offer where the creation or retention of primary jobs are not required. Texas Local Government Code §501.152-154 describes these projects in further detail.
Texas Capital Fund
The City of White Oak is considered a "nonentitlement" city and therefore is qualified to apply for a grant from the Texas Department of Agriculture's Texas Capital Fund. This is an economic development tool designed to provide financial resources for public infrastructure or real estate needed to assist a business that commits to create and/or retain permanent jobs. The real estate and/or improvements must be owned by the community and leased to the business. The application process is available on a monthly and competitive basis. Only units of general local government are eligible applicants. Click here for more information.
Chapter 380 Economic Development Agreements
Chapter 380 of the Local Government Code authorizes municipalities to offer a limitless range of incentives designed to promote state or local economic development. Specifically, it allows for the provision of loans and grants of city funds, as well as the use of city staff, city facilities, or city services, at minimal or no charge, to promote local industrial, commercial, and retail business development. A city may condition the incentive upon the creation of employment, construction of improvements, continued operations in a city for a stated period, or other public consideration.
Texas Leverage Fund
The Texas Leverage Fund (TLF) allows economic development corporations to leverage future sales tax revenues to support job retention or creation. TLF loans provide flexible financing terms to match the unique needs of communities, with maturities of up to 15 years available. TLF loans are low-cost and EDCs are eligible to borrow four to five times their annual sales tax revenues.
Loan proceeds must be used to pay eligible costs of projects as defined by the Economic Development Act of 1979. Examples of eligible costs include land, buildings, machinery, equipment for manufacturing and industrial operations, sports, athletic, entertainment, and public park purposes and events.
Texas Product/Business Fund
The Texas Product/Business Fund provides asset back financing to companies currently doing business in the state. Texas companies or out-of-state/international companies doing business in the state are eligible to apply.
The Texas Business Incentives and Programs Overview from the Texas Governor's office offers great information regarding state incentives and programs