Designed to promote growth in non-entitlement areas, the Texas Capital Fund can be used for businesses creating new full-time jobs, a majority of which benefit low to moderate-income persons. This program requires an application and competitive rating process which sometimes delays the funding process. If the timing of the project makes it possible, the TCF programs available to Kilgore are:
TCF Infrastructure Grant Program
Funds may be used for construction and/or improvements of water or wastewater facilities, public road construction, natural gas line services, rail spurs, and electric power services. Minimum and maximum awards are $50,000 and $750,000 and may not exceed 50% of the total project cost.
TCF Real Estate Development Program
Funds may be used to acquire, construct, or rehabilitate real estate to support a for-profit or a non-profit entity willing to commit to creating or retaining jobs primarily for low or moderate income persons. Minimum and maximum awards are $50,000 and $750,000 and may not exceed 50% of the total project cost.
Funds may be used for:
acquisition of land and/or buildings
construction of new buildings and site improvements
rehabilitation of buildings and site improvements
Terms
The minimum award is $50,000 and the maximum is $1,000,000 inclusive of administration costs. Awards of more than $750,000 require a greater level of job creation/retention and matching funds, and are limited to two (2) per year. The award may not exceed fifty percent (50%) of the total project cost. Required minimum equity injection of the total project cost by the business:
ten (10%), if operating for 3+ years
thirty-three percent (33%), if operating for less than 3 years
Applicant must not sell/transfer ownership for a minimum of five years.
The business must remit to the applicant a monthly lease payment equal to the award amount divided over a maximum 240 month period.
Applicant may elect to deposit lease payments in a revolving loan fund for use at the local level and receive one award per program year; or return payments to the state for use in a state revolving loan fund, which allows the applicant to be eligible for as many awards per program year as it has eligible projects.
The lease agreement with the business must be for at least three years or until the contract between the applicant and the Texas Department of Agriculture is satisfactorily closed.
Collateral
An applicant may use the real estate as collateral to secure additional funding for the real estate improvements.
