If you wish to start a business and finding out options for obtaining investment capital, Texas government has some great options to offer you. The Economic Development Bank (EDB), created in 2003 by the 78th legislature provides a number of financial tools for companies for relocation, expansion, and business start-ups. It also gives financial aid to the local communities by giving them access to capital for business development.

All the loan schemes offered by EDB are aimed at encouraging small businesses to actively participate in the nation’s economic development and create employment avenues for the local people. Some of these loan programs are described below:

Industrial Revenue Bond Program (IRBP):
This program offers taxable or tax-exempt financing for businesses engaged in industrial and manufacturing operations under the Development Corporation Act of 1979. This act encourages various cities and countries to form non-profit organizations for industrial development by providing them authority to issue industrial revenue bonds. Basically, such bonds are approved by the government and the money is channeled to the business owners through these non-profit organizations.

Industry Development Loan Program (IDLP):
Such a program provides business communities in Texas capital for business development and expansion at relatively low rates. The primary objective of this program is to provide favorable financial aid to various projects, so that they actively participate in increasing employment levels through jobs creation and retention.

Loans obtained through IDLP can be used for a variety of purposes including purchase of equipment for upgrading manufacturing or other operations or buying real estate properties such as land and building for establishing a company’s business centre or relocating it. Loans above $5,000,000 can be obtained through IDLP and are applied by economic development corporation of a particular community.

Capital Access Program (CAP)
This program is designed for giving financial aid to businesses or non-profit organizations that are unable to obtain capital from other sources. Funds obtained through such a program can be used to finance a company’s working capital requirements, purchase or construction of a real estate property (not the company’s headquarter), and getting equipment on lease or purchase.

Enterprise Zone Program (EZP)
This program encourages local business communities in economically backward areas to enter into partnerships with Texas. The objective of the program is development of the economy by way of expansion of the job market in the economically backward states.
To participate in this program, local communities or those in the state need to choose a particular company to make it their Enterprise Project. The government accepts the applications by such communities every quarter. The approved projects can apply for sales in the state and avail of tax refunds on all the qualified expenditures.