Although most EDCs rely on sales tax receipts for the bulk of their revenues, there are several other funding sources available.
EDCs may accept grants from any public or private entity including federal, state, and local governments; individuals and corporations.
EDCs also may accept loans and issue bonds to leverage revenues from future tax receipts for current projects. A common source of loan funds is the Texas Leverage Fund (PDF).
EDCs may act as a lender to businesses in connection with projects and charge interest on loans. The interest earned on these loans is income for the EDC.
Some EDCs operate public facilities such as arenas and stadiums as projects and receive revenues from user fees and/or admission ticket sales. These proceeds are revenue for the EDC.
EDCs also may acquire land to sell for business development projects. Profits from these transactions must be returned to the EDC's project fund to finance future business development programs.
This information should not be construed as, and is not a substitute for, legal advice.
Cities are urged to consult the Attorney General's Economic Development Handbook and their own legal counsel for any questions or interpretations of economic development laws.