Texas Product Development and Small Business Incubator Fund
Product Development and Small Business Incubator Fund (PDSBI)
Open continuously
No deadline — apply whenever you are ready.
'Long-term, asset-backed loans fully secured by tangible assets, not to exceed $5 million.' Interest rates are 'variable and generally below-market, comprised of a low weekly variable rate plus a risk premium determined by the Governor's Office'. Loans require 'unencumbered tangible assets at a maximum Loan-to-Orderly Liquidated Value ratio of 1:1'.
Texas Economic Development Bank, Office of the Governor (Texas Economic Development and Tourism Office)
public · regional
Deadline: rolling — 'a rolling application process' - no fixed deadline. Loan structures are 'ultimately determined by staff in consultation with individual applicants'.
This funder does not publish a success rate. We rank it using the rate observed across similar programmes and label it as an estimate rather than implying we know.
Major bid — written case, budget, possibly partners.
Who can apply
- Up to 100 employees
- small enterprises
- Sectors: manufacturing, deeptech, any
- Stage: growth
- Locally registered entity required
For near-bankable businesses commercialising new or improved products, plus incubators and accelerators. Requires 'at least 3 years of operating history and at least 1 year of revenue history', fewer than 100 full-time employees for the small business track, and the business must be located in Texas or have 51%+ of employees in the state. Crucially, 'Products cannot be in research and development phase' - so this excludes pre-product startups. State programme - no SAM.gov registration or UEI required.
How to apply
- Confirm eligibility: at least 3 years of operating history and at least 1 year of revenue history, product past the R&D phase, and unencumbered tangible assets to secure the loan. — link
- Contact the Texas Economic Development Bank to discuss the loan structure.
- Submit the application with financials and asset schedule; the Governor's Office sets the risk premium.
What you will need
- Three years of operating history and financial statements
- Schedule of unencumbered tangible assets for collateral
- Business plan and use-of-proceeds statement
Source. https://gov.texas.gov/business/page/product-development-and-small-business-incubator-fund — checked 2026-08-14
"Long-term, asset-backed loans fully secured by tangible assets, not to exceed $5 million."