Guidelines Business Incentives
The City of La Grange Economic Development Corporation will work to provide incentives that encourage the retention/expansion of existing local businesses, to attract new business/industry in order to increase the local tax base and provide new employment opportunities that enhance the quality of life. The following is a description of the incentives offered by the City of La Grange Economic Development Corporation and the City of La Grange. It is not meant to be all inclusive as each business situation is different; the desire of the City of La Grange Economic Development Corporation and the City of La Grange is to be flexible. Therefore, the following incentive policy is meant to provide guidelines rather than rules. Any combination of, alterations of, or exceptions to the programs may be considered and/or approved, subject to EDC Board review.
- The maximum inducement that a for profit business can receive is $100,000.00 in City of La Grange Economic Development Corporation Funding.
- The City of La Grange Economic Development Corporation offers loans to for profit businesses and will assist these businesses in obtaining state and federal incentives.
- The City of La Grange Economic Development Corporation will work with the City of La Grange to offer ad valorem tax abatements.
- The City of La Grange will recapture lost tax revenues once the tax abatement has expired through indirect tax revenues (e.g., increased sales tax revenues, new residential property taxes, utilities, and permit fees).
- Any relocating, existing, startup or expansion (for profit only) business that meets the following criteria are eligible for consideration.
- At least $500,000.00 in capital investment.
- Employ At least 10 or more existing jobs at the time of application.
- Create at minimum 10 or more new jobs per year.
- The City of La Grange Economic Development Corporation shall work with for profit businesses or industry to achieve at minimum 60% local employment.
- These local incentives shall be limited to the City of La Grange region being the City of La Grange zip code (78945) and/or limited to the Extra Territorial Jurisdiction (ETJ) boundaries as defined by the City of La Grange.
La Grange Small Business Revolving Loan Pool
The City of La Grange Economic Development Corporation and BCL (Business & Community Lenders) of Texas have joined efforts in a partnership to form a revolving loan pool to provide capital for La Grange Small Businesses.
Any relocating, existing, startup or expansion (for profit only) small business that meets the following criteria are eligible for consideration under this incentive program.
- Less than $500,000.00 in capital investment.
- Employs 10 or less existing jobs at the time of application.
- Creates at maximum 10 or less jobs per year.
Types of loans that qualify
Businesses located in or within the City limits of La Grange that need funds for the following may qualify:
- Working Capital
- Real Estate
- Leasehold improvements
Eligible Local Businesses
- Liquor Stores
- Dance Halls
- Massage parlors
- Sexually-oriented businesses
Loan Amount Range: $2,000.00 to $25,000.00
Interest Rate: 3% Fixed
Amortization: 5 years or less.
Payments: Monthly through automatic bank draft only.
* All loans shall require a minimum of 1 job created or retained, acceptable credit and/or personal guarantee. Gap financing or personal loans shall not be eligible.
* Loan applicants may receive loan assistance for a maximum of 2 requests only with a minimum of one (1) year between loan application requests.
City of La Grange Economic Development Corporation Grants
For profit business are not eligible for matching grants through the City of La Grange Economic Development Corporation.
Public improvements as relates to infrastructure within the Extra Territorial Jurisdiction (ETJ) of the City of La Grange that benefit the public in general and enhance the quality of life for City residences are eligible for grant assistance through the City of La Grange Economic Development Corporation.
The City of La Grange Economic Development Corporation may offer assistance with matching grants to non profit organizations that reside within the City limits of the City of La Grange. These grants shall be distributed as a reimbursement only. The applicants match must be cash only; no in-kind services shall be accepted. The non profit organization making application must match at a minimum 40% of the total cost for any given project that application is made for.
Upon grant approval and six (6) months thereafter applicant shall be required to provide a written report to the Economic Development Coordinator stating how the grant funds have been used to meet the requirements of the grant and the status of the project.
Applicants requesting grants funds for operating expenses are ineligible. Grant funds shall not be used for operating expenses.
Matching grants through the City of La Grange Economic Development Corporation shall be available on a first come-first serve basis.
Applications shall be reviewed on a quarterly basis and the City of La Grange Economic Development Corporation reserves the right to approve and/or reject any and/or all applications. Applying does not necessarily mean approval.
The City of La Grange will assist applicants in identifying and pursuing state funding opportunities offered through our state agencies for business development, relocation, retention and expansion. The City of La Grange Economic Development Corporation will strive to be a partner in applying for Texas Capital Fund grants, loans and various other state funding incentives to maximize dollars from the State for local development projects.
Applications are available for download here for Non-Profits or For Profit or can be acquired at City Hall and the office of the City of La Grange Economic Development Coordinator, located at 155 E. Colorado, La Grange Texas 78945. All inquiries are by appointment only. For information contact (979) 968-8701 or e-mail: email@example.com. Office hours are from 8:00 AM. to 5:00 PM., Monday through Friday.