Second Stage Company Grant Program

This competitive grant program is designed to help second-stage companies mitigate challenges such as managing a growing staff or entering new markets. Awarded funds should be used to engage in deliberate investments to grow locally and regionally, as identified via a written and reviewed growth strategy.

Funding Availability

Applicants may be eligible for up to $100,000 per company based upon individual considerations for company needs, commitments, and leveraged resources. Total program awards will be capped at no more than $500,000. The grant program application window is subject to close at City's discretion or once available funds are exhausted. Final awards are subject to City Council approval.

Grant Eligibility

Applicants must meet the definition of a Second-Stage Company:

• Must be a for-profit, privately owned business.
• Must have $1 million – $50 million in revenue.
• Must have 100 employees or less.
• Must have 100 or less employees.
• Must be a business in one of the City of San Antonio's five strategic industries by eligible NAICS code: 
  
  • Mobility
  • Corporate Services
  • Bioscience Anchors & Catalysts
  • IT Security & Infrastructure 
  • Sustainable Energy

Applicants must also meet the following eligibility criteria:

• Headquartered within San Antonio city limits and remain for one year from date of grant award.
• Must demonstrate company growth in employment and/or revenue during two of the past five years.
• Full-time positions must pay at least $20 per hour.
• Must participate in worker's compensation and provide healthcare benefits packages to all full-time employees.
• Grant applicant must be majority owner of business.
• Must complete three-year compliance reporting including survey responses.

NOTE: Grant program requirements and eligibility criteria are subject to change at City's discretion.

Applicants must also complete and submit a grant application. Grant application forms to be posted on the Economic Development Department's website.

Application Supplements

Applicants must provide documentation demonstrating company growth in employment and/or revenue during two of the past five years.

Applicants will be evaluated based on their provided written growth plan which can include one of the following:

• Market development including navigating new markets to sell products or services, export-oriented expansion, and/or increased market penetration.
• Product strategy/development including the development of new products or services that fit a customer need, or the updating of old products or services to satisfy market changes, and/or changes to initial product mix.
• Diversification including entry into new market through acquisition, merger, or partnership opportunities.

Applicant's written growth plan must consist of:

• A description of expansion opportunities.
• Financial goals broken down by quarter and year for three years.
• A marketing plan of how company will achieve growth.
• A financial plan consisting of company's current assets and what capital is accessible during growth including any leveraged assets from external financial resources.
• A breakdown of company's staffing needs and responsibilities.

Use of Funds

The Grant can only be used for the following expenses:

• Hiring employee(s)
• Training programs and other initiatives to develop and sustain a skilled workforce
• Business development
• Marketing and/or product development
• Real and personal property acquisition and site development
• Facility construction and/or real property improvements

The Grant cannot be used for any of the following expenses:

• Projects involving new construction over the Edwards Aquifer Recharge or Contributing Zone that will result in additional impervious cover at the project site.
• Projects encroaching on military operations as defined in the SA Tomorrow Comprehensive Plan, Department of Defense Joint Land Use Studies, or the City's Annexation program.
• Those projects statutorily prohibited under Chapter 380.

Compliance

Grant awardees will be required to submit a status report as to the disposition of the funds semi-annually following the date granted to ensure eligible use of funds within the agreement term.

Award recommendations subject to funding availability. City reserves discretion to recommend applicant companies who have not received a prior Second Stage Company grant.

Application

The application is not yet open for this program. To receive more information as it becomes available, submit your contact information.