About this programme
The Texas Enterprise Fund (TEF) is a 'deal-closing' cash grant administered by the Texas Economic Development & Tourism Office, a division of the Office of the Governor. It exists for one specific situation: a company is deciding where to put a new facility or expansion, a site in Texas is one of the options under active consideration, and at least one out-of-state site is also in the running. The grant is the state's tool for tipping that decision toward Texas.
TEF is described as a performance-based financial incentive: it is aimed at projects that would bring significant capital investment and new employment to the state, not at general business support or early-stage funding. Because the fund exists to influence a live site-selection decision, a company that has already chosen its Texas location, or has no genuine out-of-state alternative, does not fit the programme's premise.
Final approval of a TEF grant requires unanimous agreement from the Governor, the Lieutenant Governor, and the Speaker of the House, which places TEF outside the normal administrative-agency grant process most founders will have encountered. Each award is negotiated and contracted individually rather than drawn from a published funding formula available to all applicants.
How it works
Award amounts are calculated using what the programme calls a 'uniform analytical model,' built from the average wages of the new jobs being created, the pace of hiring, the total number of jobs, and the scale of the proposed capital investment. There is no published flat grant amount or public formula on the official page — each award is sized to the specific project.
No TEF funds are released up front. The company first signs a grant contract that sets binding job-creation and wage targets for defined periods (typically annual). Funds are then disbursed only after the company demonstrates it has met the targets for that period, so disbursement trails performance rather than preceding it.
The contract obligates the company to keep the created jobs in place, and paying at least the county average wage, for the full term of the agreement — not just the year the jobs were created. If a company falls short of its committed job or wage numbers, or breaches other contract terms, the Governor's Office can invoke clawback provisions and demand repayment of grant funds already disbursed.
TEF grants are also expected to sit alongside local incentive offers — the project needs to be backed by an offer of support from the relevant city, county, and/or school district, so TEF functions as one layer of a larger incentive package rather than a stand-alone award.
Who can apply
A project must involve a single Texas site that is in active competition with at least one out-of-state site, with the location decision not yet made. TEF is not available to formalise a decision already taken.
The project must be projected to create more than 75 full-time jobs if the site is in an urban area, or more than 25 full-time jobs if the site is in a rural area, and the average wage of those new jobs must meet or exceed the average wage of the county where the project will be located.
The company must be able to demonstrate significant planned capital investment, with the bar for 'significant' determined by the Governor's Office on a project basis rather than published as a fixed threshold.
The applicant must be a well-established, financially sound company operating in an advanced industry with genuinely feasible alternative locations — the programme is not built for early-stage or pre-revenue companies without a credible multi-state site search underway.
The project must already have a local incentive offer in place or in progress from the city, county, and/or school district where the Texas site would be located.
How to apply
- Submit an application through the TEF Portal (tef-portal.gov.texas.gov); applications are accepted on a rolling basis rather than against fixed windows.
- The Economic Development & Tourism Office runs an 11-step due diligence process on the applicant, covering the competitiveness of the project, the company's corporate activity, its financial standing, tax status, any legal issues, credit ratings, the project's estimated economic impact, and the business climate of the competing out-of-state locations.
- If the project clears due diligence, the award amount is determined using the programme's analytical model based on job count, wages, hiring timeline, and capital investment.
- Final approval requires sign-off from the Governor, the Lieutenant Governor, and the Speaker of the House before a grant contract is offered.
- The company signs a grant contract that sets job-creation and wage targets for each contract period; TEF funds are then disbursed only after the company reports meeting the targets for that period.
Frequently asked
Who can apply for the Texas Enterprise Fund?
Only companies with a live, multi-state site decision in progress: a Texas site must be actively competing against at least one out-of-state site for the same project, and the location has not yet been chosen. TEF is not a general grant for businesses already operating or already committed to Texas.
How much can a company receive from TEF?
There is no published flat amount. The official page describes award sizing as a 'uniform analytical model' built from the new jobs' average wages, the hiring timeline, job count, and the scale of proposed capital investment — each grant is negotiated for the specific project.
What are the minimum job-creation numbers?
More than 75 new full-time jobs for a project in an urban area, or more than 25 new full-time jobs for a project in a rural area, with the average wage of those jobs meeting or exceeding the county average wage.
When does TEF actually pay out the grant money?
Not up front. The company first signs a grant contract with job and wage targets for each period (typically annual), and funds are released only after the company demonstrates it met that period's targets. Disbursement follows performance rather than funding it in advance.
What happens if a company does not meet its job or wage targets?
The grant contract includes clawback provisions. If a company fails to meet its committed job-creation or wage targets, or breaches other contract terms, the Governor's Office can require repayment of grant funds already disbursed.
Does TEF replace the need for local incentives?
No. TEF expects the project to already carry a local incentive offer from the relevant city, county, and/or school district — the state grant is layered on top of local support, not a substitute for it.
Who has final approval over a TEF grant?
TEF grants require unanimous agreement from the Governor, the Lieutenant Governor, and the Speaker of the House before an award is finalised, which is a higher and more discretionary bar than a standard agency-administered grant.
Reviewed 2026-08-16. Programmes change — confirm current eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private consultancy and is not affiliated with any government authority.