The Buda Economic Development Corporation rolled out a program in early March that aims to stimulate small business growth.
The Small Business Incentive Program will cut eligible small business owners' permitting fees by as much as half. The Buda EDC, funded by city sales tax revenue, budgeted for the program $12,500, which Executive Director Ann Miller said could provide support for 15 to 20 small businesses.
The Buda EDC will reimburse qualified applicants for fees such as new commercial building permits, sign permits and commercial inspection fees. The maximum refund one business may receive is $1,250.
Applicants must either be a new business or an expanding one, with new businesses needing at least one full-time employee to qualify and expanding businesses needing to add full-time employees, Miller said.
The business must also be open at least 30 hours a week. Only businesses in target industries—such as hospitality and tourism, office space, retail and entertainment and light industrial—will qualify.
"When you're starting your business, every dollar counts," Miller said. "If they can have more money for working capital or to invest in inventory, the better off they are."
Incentive programs the EDC has funded in the past include a grant program for downtown merchants, but this will be the first for small businesses outside the downtown area, Miller said.
No applications have been submitted, but the Buda EDC has fielded calls from several business owners interested in applying, she said.
The application may be found online on the Buda EDC website, www.budaedc.com.
Miller said the program provides people an incentive to start new businesses in Buda but also a nudge toward determining whether the customer base and market exists for their business. As part of the process, each applicant must submit a business plan to look at things such as marketing strategies, target markets and projected revenue, she said.
Kelim Warren, a planner for the city of Buda, said while the amount of permitting fees vary from project to project and many already have the working capital to pay for fees, providing reimbursement removes one of the hurdles for business owners.
"The idea is that it reduces the barriers to opening your own business and thereby increases the amount of economic development in the city," Warren said.