Austin is one of the best-resourced cities in the country for small business funding, and yet many business owners operating here leave money on the table because they do not know where to look. The city combines federal SBA programs, Texas state economic development incentives, a robust network of community lenders and nonprofit CDFIs, and one of the most active startup investment ecosystems in the United States. Whether you are launching your first business, scaling an existing operation, or developing a technology product with commercial potential, Austin has a funding pathway designed for your situation.

Federal Funding Resources for Austin Business Owners

SBA Austin District Office

The SBA Austin District Office is the primary gateway for federal small business lending programs in the region. The SBA does not lend directly: instead, it guarantees loans made by approved lenders, which reduces the risk for banks and credit unions and allows them to extend credit to businesses that might not qualify for conventional loans. The most commonly used SBA programs for Austin businesses include:

• SBA 7(a) Loans: The most versatile SBA program, supporting working capital, equipment purchases, real estate, and business acquisitions up to $5 million. Terms up to 10 years for working capital, 25 years for real estate.
• SBA 504 Loans: Designed for major fixed asset purchases: commercial real estate, large equipment, and facility improvements. Combines a bank loan with a Certified Development Company (CDC) component and SBA guarantee. Excellent for Austin businesses purchasing their own building.
• SBA Microloans: Loans up to $50,000 for startups and small businesses with limited credit history. Often the right fit for early-stage Austin founders who need initial capital but cannot qualify for larger bank loans.

SBIR and STTR: Research and Innovation Grants

Austin’s technology economy and the presence of UT Austin’s world-class research programs make the city a strong candidate for SBIR (Small Business Innovation Research) and STTR (Small Business Technology Transfer) funding. These federal grant programs, administered across 11 federal agencies, fund technology research and development in priority areas ranging from defense to healthcare to clean energy.

For Austin founders building technology products, SBIR Phase I awards typically range from $150,000 to $300,000 and are non-dilutive: you keep full ownership of your company. Phase II awards can reach $1 to $2 million. UT Austin’s research commercialization offices actively support faculty and students navigating SBIR and STTR applications, creating a pipeline of funded innovation that feeds the broader Austin startup ecosystem. The Austin SBDC provides guidance on SBIR/STTR eligibility and application strategy.

Local CDFIs and Community Lenders

LiftFund

LiftFund is one of the largest and most established CDFIs (Community Development Financial Institutions) in Texas and the South. LiftFund makes small business loans from $500 to $1 million, with a focus on entrepreneurs who face barriers accessing traditional bank financing: women, minorities, veterans, and low-to-moderate income business owners. Their Austin lending team understands the local market and can move faster and more flexibly than a conventional bank on smaller deals. LiftFund is a preferred SBA microloan intermediary, and their underwriting considers character and business potential alongside credit scores.

PeopleFund

PeopleFund is an Austin-based CDFI that has deployed tens of millions of dollars into Texas small businesses since its founding. PeopleFund specializes in businesses that traditional lenders overlook: startups with limited track record, businesses in underserved communities, and entrepreneurs who need smaller loan amounts than banks find practical. They offer business loans, technical assistance, and one-on-one coaching that complements the financing with operational support.

Austin SBDC

The Austin Small Business Development Center, housed at UT Austin, provides free consulting, loan packaging assistance, and financial planning support to Austin business owners at all stages. SBDC advisors help business owners prepare bankable loan applications, identify grant opportunities, and evaluate their funding options. For any Austin business owner considering a loan or grant, a free SBDC consultation is the logical first step. Learn more at the Austin SBDC website.

Austin Economic Development Incentives

The City of Austin offers economic development incentives for qualifying businesses that create jobs and investment in the city. The Austin Economic Development Corporation and the City’s Economic Development Department manage programs including:

• Chapter 380 Agreements: City-negotiated economic development agreements that can provide property tax rebates or other incentives for major job-creating investments.
• Enterprise Zone Program: Texas state program that provides sales tax refunds on qualifying purchases for businesses in designated enterprise zones. Some Austin areas qualify.
• Historic Preservation Tax Credits: For businesses occupying and rehabilitating historic Austin buildings, both federal and state historic tax credits may be available.

Navigating city incentive programs benefits from working with an advisor who understands Austin’s economic development landscape. The Austin Chamber of Commerce is a good starting point for identifying what programs might apply to your specific business and location.

Startup and Venture Capital Funding in Austin

Capital Factory

Capital Factory is Austin’s premier startup accelerator and venture fund. Located in downtown Austin, Capital Factory has invested in hundreds of Texas startups and connects founders to a network of investors, mentors, and corporate partners. For technology founders building scalable products, Capital Factory is the most direct path to Austin’s venture community. Their accelerator program provides investment, office space, and introductions that compress years of network-building into weeks.

Angel Investors and Seed Funds

Austin has a growing community of angel investors and seed-stage funds that are active in consumer tech, enterprise software, healthcare technology, and sustainability. Networks like ATX Angel Investors and the Central Texas Angel Network connect founders with individual investors who write checks in the $25,000 to $500,000 range. Building relationships in Austin’s startup community through Capital Factory events, Austin Startup Week, and SXSW networking is the most reliable path to accessing these investors.

Venture Capital

Austin’s venture ecosystem has deepened significantly as established VC firms have opened Austin offices and local firms have grown their assets under management. Firm presence from LiveOak Venture Partners, S3 Ventures, and Silverton Partners, combined with the Austin offices of national firms, means Austin founders can raise institutional rounds without relocating. For tech founders, Austin’s VC community is a legitimate alternative to Silicon Valley for Seed through Series B raises.

Grants for Austin Entrepreneurs

Grants provide non-dilutive capital that does not require repayment or equity. While highly competitive, several grant programs are particularly relevant for Austin business owners:

• Texas Workforce Commission grants: TWC administers several workforce development grants that can fund employee training costs for qualifying businesses at twc.texas.gov.
• SBIR/STTR: As noted above, the premier non-dilutive grant program for technology businesses.
• Minority and women-owned business grants: The Austin Black Chamber and Austin Hispanic Chamber maintain information on grant opportunities specifically for minority and women entrepreneurs in the Austin community.

For a full picture of doing business in Austin, explore our complete Austin business guide. For legal support as you navigate funding agreements and term sheets, see our guide to Austin business lawyers.

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