Documente Academic
Documente Profesional
Documente Cultură
Texas Economic Development
State Funding Update
AGENDA
Advertising oversees the award-winning tourism ad campaigns, including national cable television The program will work through partnerships between the state, institutions of higher education and
commercials, domestic and international print ads in consumer and trade publication, radio and private industry to focus greater attention on the research, development and commercialization of
newspaper campaigns and interactive media such as the internet, including www.TravelTex.com. emerging technology through the following three areas:
Public Relations works with the travel trade industry and media throughout the United States and top Creating at least six Regional Centers of Innovation and Commercialization (RCIC) throughout
international markets including Mexico, Canada, the United Kingdom, Germany and Japan. the state.
Matching grant funds for technology research and development projects that accelerate
commercialization into production and have a demonstrated ability to receive federal grants.
Attract highly renowned research talent from other universities and institutions in other states.
P.O. BOX 12428 | AUSTIN, TX 78711 | 512-936-0100 |DIAL 7-1-1 FOR RELAY SERVICES WWW.GOVERNOR.STATE.TX.US
Office of the Governor
Economic Development & Tourism
Organization Chart
GOVERNOR
GOVERNOR
ExecutiveDirector
Executive Director
TexasBusiness
Texas BusinessDevelopment
Development TexasTourism
Texas Tourism TexasEconomic
Texas EconomicDev.
Dev.Bank
Bank Aerospace&&Aviation
Aerospace Aviation EmergingTechnology
Emerging Technology
BusinessResearch
Business Research PublicRelations
Public Relations CapitalAccess
Capital Access(CA)
(CA) SpaceDevelopment
Space Development&&Retention
Retention
DefenseEconomic
Defense Economic
DomesticExpansion
Domestic Expansion&&Recruitment
Recruitment TravelResearch
Travel Research AviationDevelopment
Aviation Development&&Retention
Retention
ReadjustmentZone
Readjustment Zone(DZ)
(DZ)
RegionalOperations
Regional Operations Advertising
Advertising TexasEnterprise
Texas EnterpriseZone
Zone(EZ)
(EZ) Aerospace&&Aviation
Aerospace AviationPlanning
Planning
InternationalBusiness
International Business
Marketing
Marketing SmallBusiness
Small BusinessIncubator
IncubatorFund
Fund
&&Recruitment
Recruitment
StateofofTexas
State TexasNAFTA
NAFTAOffice
Office IndustrialRevenue
Industrial RevenueBonds
Bonds(IRB)
(IRB)
LinkedDeposit
Linked Deposit(LD)
(LD)
ProductDevelopment
Product DevelopmentFund
Fund
RenewalCommunity
Renewal Community
TexasLeverage
Texas LeverageFund
Fund(LF)
(LF)
TexasIndustrial
Texas IndustrialDevelopment
Development
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Texas Enterprise Fund
“The door is open for business in Texas, and the Texas Enterprise Fund allows us to put that sign
up in neon.” – Gov. Rick Perry
At Gov. Rick Perry’s request, the 78th Texas Legislature established the Texas Enterprise Fund
(TEF) in 2003 to provide financial resources to help strengthen the state’s economy. Funds
for the TEF were reappropriated in 2005 and 2007, making more than $250 million available
for the job creation fund in the 2008-2009 biennium.
The Texas Enterprise Fund, the largest “deal closing” fund of its kind in the nation, continues
to attract businesses and jobs to Texas. The TEF recently attracted Comerica’s headquarters
to Dallas, bringing 200 jobs; and prompted Rackspace Managed Hosting to expand in San
Antonio, creating more than 4,000 jobs.
To date, the state has allocated more than $366 million from the Texas Enterprise Fund,
bringing more than 51,600 new jobs and generating more than $13.6 billion in capital
investments to the state.
Projects that are considered for TEF support must demonstrate a project’s worthiness,
maximize the benefits to the State of Texas and realize a significant rate of return of the
public dollars being used for the economic development of Texas. Capital investment, job
creation, wages generated, financial strength of the applicant, applicant’s business history,
analysis of the relevant business sector, federal and local government and private sector
financial support of a project are all significant factors in approving the use of the Enterprise
Fund.
The Governor’s Office works closely with local leaders to tailor incentive packages that best
meet the needs of local communities and businesses. Recruiting new business and helping
to expand existing business is a dynamic process.
If you have a project that can benefit from the Texas Enterprise Fund, an application must be
submitted to the Office of the Governor, Economic Development & Tourism division, which
provides information on how funds are to be utilized and how the proposed project meets
the criteria of the program. The Texas Enterprise Fund application is available at
www.governor.state.tx.us/divisions/ecodev/ed.bank/tefund.
www.TexasWideOpenForBusiness.com
Office of the Governor
Texas Enterprise Fund Projects - Disbursed, Announced & Committed
As of May 31, 2009
West Texas/Upper Rio Grande Region North Texas Region East Texas Region
• ADP - El Paso, $3MM • Allied Production Solutions – Gainesville,$800K • Alloy Polymers - Houston County, $0.2MM
• Dyncorp - $0.94MM committed, DNA* • Associated Hygienic Products – Waco, $520K • Campbell’s Soup - $1MM committed, DNA*
• Hilmar Cheese - Dalhart, $7.5MM • Authentix – Addision, $1MM • Hewitt - $4MM committed, DNA*
• IBM - $2.5MM committed, DNA* • Cabela’s – Ft. Worth, $0.6MM*** • LEARN & TIGRE - Network Infrastructure**
• LEARN & TIGRE - Network Infrastructure** • Comerica – Dallas, $3.5MM • Lee Container - Nacogdoches, $0.3MM
• Martifer Energia, S.A. – San Angelo, $945K • Countrywide – Richardson, $20MM • Motiva - Port Arthur, $2MM
• Superior Essex - Brownwood, $0.25MM • Fidelity – Town of Westlake, $8.5MM • Newly Weds Foods – Mt. Pleasant, $0.45MM
• Trace Engines - Midland, $0.456MM • FlightSafety International – Irving, $720K • Union Tank Car - $2MM committed, DNA*
• Gulfstream – Dallas, $750K
• Johns Manville – $0.5MM committed, DNA* Gulf Coast Region
Central Texas Region • JTEKT Automotive – Ennis, $0.333MM • Baylor (Research) - Houston, $2MM
• American Security Insurance - $ 0.75MM • LEARN & TIGRE – Network Infrastructure** • CITGO - Houston, $5MM***
committed, DNA* • LM Glasfiber – $5.2MM committed, DNA* • Energy Center - Sugarland, $3.6MM
• Cabela’s - Buda, $0.6MM*** • Maxim – Irving, $5MM **** • General Dynamics - $1.3MM committed, DNA*
• EPV Solar – $1M committed, DNA* • Pratt Industries – $3.3MM committed, DNA* • Hewlett-Packard - Houston, $5MM****
• HelioVolt – Austin, $1M • Raytheon – McKinney, $1MM • Huntsman - The Woodlands, $2.75MM
• Hewlett-Packard - Austin, $5MM**** • Ruiz Foods – Denison, $1.5MM • Ineos USA - League City, $0.75MM
• Home Depot - Austin, $8.5MM*** • Sanderson Farms – McLennan County, $0.5MM • LEARN & TIGRE - Network Infrastructure**
• Indymac Bank - $4M committed, DNA* • Rockwell-Collins, Inc. – Richardson, $1.678MM • Lockheed Martin - Houston, $7.5MM
• LEARN & TIGRE - Network Infrastructure** • Schott Solar – Arlington, $3M Committed, DNA* • Merit Medical - $0.75MM committed, DNA*
• Samsung - Austin, $10.8MM • T-Mobile – Frisco, $2.15MM • NASA - $5.1MM committed, DNA*
• Scott & White Memorial – Temple, $7.5MM • Texas Instruments/UTD – Richardson, $50MM • TIGM - Houston/College Station, $50MM***
• Sematech - Austin, $40MM • Torchmark – McKinney, $2MM • UTHSC/MDA - Houston, $25MM
• Viasys - $0.5MM committed, DNA* • Tyson Foods – Sherman, $7MM
• U.S. Bowling Congress – Arlington, $693K South Texas Region
• Vought – Dallas, $35MM • Albany Engineered Composites – Boerne, $1MM
• Caterpillar Inc. – Seguin, $10MM
Lower South Texas Region • Dunlop Aerospace – $0.43MM committed, DNA*
• Boeing - $45MM committed, DNA* • Home Depot – New Braunfels, $8.5MM***
• CITGO – Corpus Christi, $5MM*** • LEARN & TIGRE – Network Infrastructure**
• LEARN & TIGRE - Network Infrastructure** • KLN Steel – San Antonio, $900K
Notes: * DNA – Did Not Accept • Santana Textiles – Edinburg, $1.65M • Maxim – San Antonio, $1.5MM
** $9.781MM Allocated Statewide
*** TEF Shared by Both Locations • Medtronic Inc. – San Antonio, $6MM
**** Refunded Proceeds • Rackspace – San Antonio, $22MM
• Washington Mutual – San Antonio, $15MM
OFFICE OF THE GOVERNOR
TEXAS ENTERPRISE FUND
PROJECT ANALYSIS
STEP
#0 TEF Application and/or Project Disclosure Correspondence
Page 1 of 1
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Texas Product/Business Fund
Loans for product commercialization and business
Asset-Based Loans
Competitive Loan-To-Value (LTV)
Positive EBITDA not required
Secure Loans with Property Plant & Equipment (PP&E)
Competitive variable interest rates
Communities or individuals can assist as Guarantors
The Office of the Governor, Texas Economic Development Bank administers the Texas
Product/Business Fund at the direction of the Governor’s appointed nine-member board.
Preference for funding is given to the states’ defined industry clusters including, but not
limited to: nanotechnology, biotechnology, biomedicine, renewable energy, agriculture and
aerospace. Job creation and retention within Texas will be considered as part of funding
priorities.
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OFFICE OF THE GOVERNOR PRODUCT DEVELOPMENT FUND
TEXAS ECONOMIC DEVELOPMENT BANK SMALL BUSINESS FUND
1) Provide a brief summary of the project that will require funding? (include project location)
2) What is the requested loan amount? If the company would like a range to be considered, please provide that amounts (low to high).
4) Do you have a detailed business plan including the company structure and purpose, management summary,
product/service, marketing strategy, and financial summary?
5) What is the company's sales for the last fiscal month, most recent fiscal quarter, and most recent fiscal year end.
7) What unencumbered collateral would the company be pledging to cover the requested loan amount?
9) Provide the company's Taxpayer ID number & business status from Texas Comptroller of Public Accounts.
(*) (*)
CONFIDENTIAL INFORMATION COMPETITION SENSITIVE
OFFICE OF THE GOVERNOR PRODUCT DEVELOPMENT FUND
TEXAS ECONOMIC DEVELOPMENT BANK SMALL BUSINESS FUND
10) Provide a summary of the company's product regulatory approval status? (if applicable)
11) Provide a brief overview of the business history. (i.e: origination, major milestones, former names, etc.)
13) Has the company had prior bankruptcies or lawsuits? If yes, please explain
14) Submit the following documents along with this evaluation form:
a) Detailed Business Plan to include:
Company Structure/Purpose, Management Summary, Product/Service, Marketing Strategy & Financial Summary
b) Prior 3 years Financial Statements to include:
Income Statement, Balance Sheet, Cash Flows & Detailed Market/Product Revenues and Operating Expenditures
c) Three Year Pro Forma
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CONFIDENTIAL INFORMATION COMPETITION SENSITIVE
OFFICE OF THE GOVERNOR
TEXAS ECONOMIC DEVELOPMENT BANK
PRODUCT DEVELOPMENT FUND / SMALL BUSINESS FUND
“10 STEP PROCESS” DUE DILIGENCE
Credit Review
7 Bloomberg
Moody’s, S&P, Fitch
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This Loan Proposal sets forth proposed terms for a possible Bond Purchase Agreement to be entered into between the Public
Entities and the State of Texas. Any transaction between the parties is subject to the execution of definitive agreement. This
Proposal has no binding effect, and reflects no commitment by or obligation of the parties.
Emerging Technology Fund
“In Texas, we understand that high-tech companies don't just happen overnight but are a
product of forethought, sound vision and planning, and strategic investments by both the public
and private sectors. Through our Emerging Technology Fund, we are bringing the best scientists
and researchers to Texas, attracting high-tech jobs and helping start-up companies get off the
ground faster.” – Gov. Rick Perry
The Emerging Technology Fund (ETF), created by the Texas Legislature in 2005 at the urging
of Gov. Perry, provides Texas with an unparalleled advantage by expediting the
development and commercialization of new technologies, and by recruiting the best
research talent in the world. Matching and commercialization funds coupled with
additional federal and outside investments mean new technology is emerging in Texas. The
ETF was reauthorized by the 80th Texas Legislature, making more than $185 million
available during the 2008-09 biennium.
The program works through partnerships between the state, institutions of higher
education and private industry to focus greater attention on the research, development, and
commercialization of emerging technology. There are seven Regional Centers of Innovation
and Commercialization (RCIC) and one Texas Life Science Center to serve stakeholders
throughout the state in:
• Top Talent Acquisition: For acquisition of “research superiority” for Texas higher
education institutions, e.g., attracting additional, established, “high profile”
researchers as faculty;
Priority is given to emerging technology projects that will enhance Texas’ global
competitiveness – that are collaborative and leverage both critical expertise and financial
resources. Not only will these ETF investments demonstrate economic benefits, they will also
result in significant medical and or scientific breakthroughs which will improve people’s
lives.
(Continued)
www.TexasWideOpenForBusiness.com
www.EmergingTechFund.com
AWARDS
To date, the ETF has awarded over $140 million to Texas companies and universities. Below are two examples of
ETF award recipients.
NanoMedical Systems (NMS) was awarded $3,500,000 to assist with the development of the company’s
Personalized Molecular Drug-delivery System (PMDS). The PMDS is a small capsule designed to be implanted
just under the skin in a simple office procedure. The capsule will be able to hold enough medication for weeks
or months of controlled release. NMS will commercialize the patented research of co-founder Dr. Mauro Ferrari.
Dr. Ferrari was recruited through an ETF Research Superiority grant to the Alliance for NanoHealth at the
University of Texas Health Science Center in Houston.
Texas AgriLife Research, an agency of the Texas A&M University System, was awarded $4,025,000 by the ETF for
research and development of the economical production of microalgae-derived fuels, such as biodiesel.
Microalgae-derived biofuels could produce 15,000 gallons of biodiesel per acre per year compared to the 50
gallons per acre per year typical of soybeans. The funds provided by the ETF will allow Texas AgriLife Research to
acquire the personnel and physical resources necessary to research and develop the technologies necessary to
tap into the incredible potential of microalgae-derived biofuels and offer those benefits to people worldwide.
PROJECT ANALYSIS
“9 STEP” PROCESS
STEP
#0 ETF Application (SUBCHAPTER “D”)
1
TEXAS ENTERPRISE ZONE PROGRAM
Enterprise Projects Approved – State Biennium, FY2008-2009 (9/1/07 – 5/31/09)
Energy
Website: http://www.texaswideopenforbusiness.com/key-industries/
Texas Economic Development
State Funding Update
TECHNOLOGY INNOVATION
Website: http://www.texaswideopenforbusiness.com/key-industries/
Texas Economic Development
State Funding Update
NEW INDUSTRY DEVELOPMENT
Commercial Aviation
Renewable Energy:
Wind, Solar, Biomass, Hydropower, Waste
AUSTIN OFFICE
Public Finance
Donna
Weinberger-Rourke Program Specialist 512-936-6443 donna.weinberger@governor.state.tx.us
TEDC
Carlton Schwab
Amy Swank
Crystal Chism
Everyone In Attendance!