LIFT Program

The Luling Economic Development Corporation (LEDC) established the Luling Investment for Tomorrow (LIFT) Business Improvement Grant Program (LIFT Program) to encourage private investment and expansions in Luling, strengthen local businesses, improve commercial properties, support business retention and expansion, and enhance the appearance, safety, and long-term economic value of business areas within the City of Luling (the “City”). The Program is intended for businesses to leverage economic development investment for projects that produce a measurable public and economic benefit. Funding is discretionary, competitive, subject to available appropriations, and is not an entitlement.

This is a reimbursable grant available to for-profit businesses located within the City. Applicants must pay eligible project costs upfront, and the grant will reimburse up to seventy-five percent (75%) of eligible expenses with a maximum annual grant award not to exceed $25,000 unless eligible for Tier 3 status. In-kind contributions, or other grant funds, may not be used by an applicant for their matching fund contribution of 25%. Only Applicant’s cash expenditures may be used as a grant match. 

• LEDC may reimburse up to seventy-five percent (75%) of approved eligible project costs, not to exceed $25,000 per approved application unless eligible for Tier 3 status. 
• There will be three tiers available for businesses to apply for: 
  • Tier 1 - $1-9,999  
  • Tier 2 - $10,000-$25,000 
  • Tier 3 – up to $50,000 (available for expanding businesses that have been established in Luling for up to three years) 
• The applicant must provide a minimum cash match equal to twenty-five percent (25%) of total eligible project costs.
• The applicant must pay all project costs before requesting reimbursement outlined in an executed performance agreement. The final reimbursement will be based on actual, verified, eligible costs and may not exceed the amount stated in the executed grant agreement.

• A qualifying existing business that has operated continuously for more than three (3) years in the City may request an award of up to $50,000 for an expansion project.
• Expansion awards will be considered on a case-by-case basis, dependent on funding availability, and are not guaranteed. The applicant must demonstrate that the project will materially expand business operations, increase employment, taxable value, or commercial activity in Luling.
• The applicant must provide the same minimum twenty-five percent (25%) cash match. LEDC participation may not exceed seventy-five percent (75%) of approved eligible costs.
• Expansion requests require approval by the LEDC Board of Directors and any additional approval required by law or City policy. LEDC may impose enhanced performance requirements, reporting, security, or repayment provisions.

The applicant match is twenty-five percent (25%) of the total eligible project cost, not twenty-five percent of the grant request. For example, a project must have at least $33,333.34 in eligible costs to receive the full $25,000 standard award. A qualifying expansion project must have at least $66,666.67 in eligible costs to receive the full $50,000 expansion award.

• For a $20,000 eligible project, the maximum LEDC reimbursement is $15,000 and the minimum applicant contribution is $5,000.
• For a $40,000 eligible project, seventy-five percent equals $30,000, but the standard grant is limited to $25,000. The applicant is responsible for the remaining $15,000
• For a $66,666.67 qualifying expansion project, the maximum LEDC reimbursement is $50,000 and the minimum applicant contribution is $16,666.67.
• For a $100,000 qualifying Tier 3 expansion project, seventy-five percent equals $75,000, but the expansion grant is limited to $50,000. The applicant is responsible for the remaining $50,000.

An applicant must satisfy all applicable requirements at the time of application and through reimbursement:

• Be a for-profit business, commercial property owner, or commercial tenant proposing an eligible project at a commercial location within the Luling city limits.
• Be authorized to conduct business in Texas and be in good standing with the Texas Comptroller and other applicable governmental entities.
• Have no delinquent City utility accounts, property taxes, sales taxes, liens, court fines, or other outstanding financial obligations to the City, LEDC, Caldwell County, or other applicable taxing jurisdictions.
• Have no unresolved code, permit, zoning, or life-safety violations, unless City staff confirms in writing that the proposed project will cure the violation and is otherwise eligible.
• Own the project property or provide a current lease and written property-owner authorization. The lease term must be sufficient, in LEDC judgment, to support the useful life and public benefit of the improvements. 
• Maintain all licenses, registrations, insurance, and permits required for the business and project.
• Not be a party to pending litigation against the City or LEDC, unless waived in writing after legal review.
• For an Expansion Grant, document more than three continuous years of business operation and provide evidence of financial capacity and project feasibility.

• No applicant, business, common owner, property owner, affiliated entity, or project location may receive more than one LIFT award within a 12-month period for awards less than $9,999 and receive more than one LIFT award within a 24-month period for awards equal to or more than $10,000.
• LEDC may aggregate applications involving common ownership, shared management, related entities, or the same property when applying award limits and frequency restrictions.

Each approved grant must constitute an authorized project that promotes new or expanded business development within the City of Luling. Funding shall not be provided solely for routine operating expenses, maintenance or the private benefit of the applicant. Each recipient shall execute a performance agreement establishing the required capital investment, jobs or payroll to be created or retained, continuing business operations, project-completion requirements and repayment obligations.

Eligible expenses must be reasonable, necessary, directly related to the approved project, and supported by itemized third-party estimates. Routine maintenance alone is not eligible. The project must represent a meaningful improvement, rehabilitation, activation, or expansion beyond ordinary upkeep.

5.1 Facade and Exterior Improvements

Structural facade rehabilitation; masonry repair or cleaning; painting that produces a substantial visual improvement; awnings and canopies; storefronts; exterior doors and windows; cornices, soffits, and architectural details.

5.2 Signage and Exterior Lighting

New permanent business signage; replacement or substantial renovation of existing signage; removal of obsolete signage; and code-compliant exterior lighting that improves visibility, safety, or appearance.

5.3 Site and Public-Facing Improvements

Parking lot resurfacing or restriping; driveway improvements; sidewalks; curbs; pedestrian access; patios; screening; decorative fencing; irrigation; landscaping; drainage; and other improvements visible from or serving the public.

5.4 Building Systems and Code-Related Improvements

Electrical, plumbing, fire suppression, fire alarm, heating, ventilation, and air-conditioning systems; foundation work; roofing; accessibility improvements; and other improvements permanently attached to the commercial property when part of a substantial rehabilitation or expansion project.

5.5 Interior Build-Out

Permanent interior improvements necessary to activate a vacant space, expand operations, improve customer access, or support a new use, including walls, flooring, service counters, restrooms, commercial kitchen infrastructure, and permanently installed fixtures.

5.6 Business Equipment and Technology

Durable business equipment, machinery, production equipment, specialized tools, technology systems, and other tangible personal property may be eligible when the equipment is necessary to establish, expand, or materially improve business operations at the approved Luling project location. Routine replacement of existing equipment,  replacement-in-kind, equipment purchased primarily for convenience, and purchases that constitute ordinary business operating expenses are not eligible unless LEDC determines that the replacement is integral to a documented business expansion.

5.7 Workforce Training and Skills Development

Job training and workforce-development expenses may be eligible when the training is directly related to an approved business expansion, creation of new employment, increased payroll, implementation of new equipment or technology, or development of skills necessary to support expanded business operations in Luling.
Eligible expenses may include specialized occupational training, industry-recognized certifications, technical instruction, equipment-related training, and other job-training programs specifically approved by LEDC.

5.8 Professional and Design Services (limited to 10% of approved project cost)

Architectural, engineering, survey, design, or environmental services required for an approved capital project may be eligible. Such costs will generally be limited to ten percent (10%) of total eligible project costs unless otherwise approved by LEDC.

5.9 Marketing Services (limited to 10% of approved project cost)

Marketing and promotional services that directly support the establishment, expansion, visibility, or growth of an approved LIFT project may be considered an eligible expense. Examples can include development or redesign of a website, branding, professional photography/videography, social media or digital advertising. Marketing and promotional expenses may not exceed ten percent (10%) of the total approved eligible project cost. Marketing expenses must be included in the original approved project budget and must be directly associated with the approved LIFT project. Routine or ongoing advertising and marketing expenses are not eligible. Marketing materials must include a specific Luling-related tagline such as “Made in Luling”, “Luling Made”, “Located in Luling, Texas”, or “Located in downtown Luling”. 

Unless specifically authorized in writing as part of an approved expansion agreement, the following are not eligible:

• Projects started, contracted, purchased, or physically underway before the grant agreement is fully executed and a written Performance Agreement is issued.
• Refinancing, debt service, loan payments, interest, penalties, taxes, delinquent obligations, legal settlements, or costs incurred before approval.
• Working capital, payroll, employee benefits, rent, utilities, deposits, inventory, consumable supplies, franchise fees, or general operating expenses.
• Vehicles, rolling stock, recreational equipment, weapons, or property primarily intended for personal use.
• Routine maintenance, ordinary repairs, cleaning, or replacement-in-kind that does not create a substantial improvement.
• Applicant or employee labor, sweat equity, donated labor, donated materials, and other in-kind contributions.
• Home-based businesses or properties that also serve as the applicant's primary residence.
• Projects that primarily benefit a noncommercial residential use or a business activity prohibited by law or City ordinance.
• Costs reimbursed by another City or LEDC program, insurance proceeds, or another public incentive for the same expense, unless specifically disclosed and approved.
• Permit, inspection, financing, application, or professional fees not expressly included in the approved project budget.
• Gift cards, giveaways, promotional merchandise, sponsorships, entertainment expenses, and similar promotional items are not eligible for reimbursement.

To be considered for an award above $25,000 and up to $50,000, the applicant must submit an expansion project proposal demonstrating the following:

• More than three (3) continuous years in business, supported by formation documents, tax filings, sales-tax records, financial statements, or other evidence acceptable to LEDC.
• A defined expansion at the Luling project location, such as added square footage, increased production or service capacity, purchase of major equipment, creation of a new business line, relocation into a larger Luling facility, or substantial redevelopment of an underutilized property.
• A minimum total eligible project cost sufficient to satisfy the twenty-five percent (25%) applicant match. To request the full $50,000, eligible costs must be at least $66,666.67.
• A written business and project plan, budget expenses, project schedule, two years of historical financial statements or tax returns, current-year interim financial statements, and reasonable projections for at least two years following completion.
• Measurable outcomes, which may include new or retained jobs, payroll, capital investment, taxable sales, taxable property value, occupancy of vacant space, new products or services, or other community benefits.
• Evidence that the applicant has the financial capacity to pay all project costs before reimbursement and to complete the project if costs exceed estimates.
• Any additional collateral, security interest, performance agreement, personal or corporate guaranty, insurance, reporting, or repayment terms required by LEDC.

• Reimbursement basis. The applicant must pay all project expenses before requesting reimbursement as outlined in an executed performance agreement. LEDC will not advance funds unless expressly authorized in a separate agreement approved by the LEDC Board and can take more than 60 days.
• Cash match required. Only the applicant's verified cash expenditures may count toward the twenty-five percent (25%) match. In-kind contributions do not qualify.
• No commencement before approval. An application, staff recommendation, or board discussion does not authorize work. A written and executed Performance Agreement is required.
• Permits and codes. The applicant is solely responsible for obtaining all required permits, inspections, licenses, and approvals and for complying with applicable codes, accessibility standards, zoning, and laws.
• Approved scope. Work must conform to the approved application, plans, budget, and grant agreement. Material changes require prior written LEDC approval.
• Contractors. Applicants are responsible for selecting, supervising, and paying contractors and for confirming that contractors are properly licensed and insured when required.
• Local purchasing. Applicants are encouraged to obtain goods and services from Luling or Caldwell County vendors when cost, qualifications, and availability are reasonably comparable.
• Inspection. LEDC and City representatives may inspect the project before, during, and after construction. An inspection confirms program compliance only and is not a warranty of quality or safety.
• Public information and promotion. Applications and agreements may be subject to public disclosure. The applicant authorizes LEDC to photograph and publicize an awarded project, subject to applicable confidentiality law.
• No entitlement. Meeting minimum eligibility or scoring requirements does not guarantee a grant award.

A complete application must include, at minimum:

1. A completed and signed LIFT Program application. 
2. A completed W-9 for the entity that will receive reimbursement.
3. Proof of legal business status and authority to apply.
4. Proof of property ownership or a current lease and signed owner authorization.
5. A detailed project narrative explaining the need, scope, public benefit, and expected economic impact. Keep in mind that the project must demonstrate how the incentive increases revenue, jobs, sales, or property value of the business.
6. An itemized project budget showing total cost, grant request, applicant match, and all other funding sources.
7. Itemized contractor or supplier estimates for projects requesting funding.
8. Existing-condition photographs and, when applicable, plans, renderings, specifications, color or material samples, site plans, and equipment information.
9. A project schedule with anticipated start and completion dates.
10. Evidence that the applicant can fund the project before reimbursement, such as a bank letter, account statement, approved financing, or other documentation acceptable to LEDC.
11. A certificate or written confirmation that City and County taxes, utilities, permits, and other obligations are current.
12. For Tier 3 expansion requests, all additional materials listed in Section 7.

Incomplete applications may be rejected or returned without review. The application date is the date LEDC determines the submission is complete.

1. Pre-application consultation
   Applicants are strongly encouraged to meet with LEDC staff before obtaining final bids or submitting an application.
2. Completeness and eligibility review. LEDC staff and relevant City departments will verify location, applicant standing, project eligibility, permits, and required attachments.
3. Evaluation. Complete applications will be evaluated using “Exhibit A” and may be reviewed in the order received, competitively during funding rounds, or both.
4. Staff recommendation. LEDC staff may recommend approval, conditional approval, reduced funding, deferral, or denial.
5. Board action. The LEDC Board will approve or deny awards and may impose conditions. Expansion requests at or above $10,000 require specific Board approval and City Council approval.
6. City Council Approval and Public Notice Requirements. For LIFT projects authorized under Texas Local Government Code Section 505.158, any LEDC expenditure exceeding $10,000 requires  City Council approval by resolution after at least two separate readings. The $10,000 threshold applies to the amount of LEDC funding, not the total project cost. Projects must also comply with any applicable public notice, 60-day petition period, public hearing, or other statutory requirements before funds are expended.
7. Written notice and Performance Agreement. An award is not effective until all required approvals are complete and the applicant and LEDC execute a written grant or performance agreement. LEDC will issue written authorization to begin after the agreement is executed and all pre-construction conditions are satisfied.

• The applicant must begin the project within sixty (60) days after the Performance Agreement is executed, unless the agreement establishes a different schedule.
• Standard projects must be completed within nine (9) months after the Performance Agreement is executed. Expansion projects may be allowed up to twelve (12) months when approved in the grant agreement.
• An applicant may request one written extension before the completion deadline. An extension request must explain project status, reasons for delay, and the additional time requested. No extension is effective until approved in writing.
• Failure to begin or complete the project on time may result in cancellation of the award and release of reserved funds.

After the project is complete and all required inspections have passed, the applicant must submit a reimbursement request containing the following:

• A signed completion certification or affidavit stating that the approved work is complete and all contractors and suppliers have been paid.
• Final itemized invoices and proof of payment, such as canceled checks, cleared electronic payments, paid receipts, or lender disbursement records.
• Final permits, inspection approvals, certificates of occupancy, and other required City approvals.
• Before-and-after photographs and any other evidence requested by LEDC.
• A final project budget reconciling approved and actual costs and identifying all funding sources.
• Lien releases, contractor affidavits, equipment serial numbers, proof of insurance, or other closeout documents when requested.

LEDC may inspect the completed project before authorizing payment. Reimbursement will equal the lesser of: (1) the approved grant amount; (2) seventy-five percent (75%) of verified eligible costs; or (3) the amount permitted under the applicable award cap. Costs exceeding the approved budget are the applicant's responsibility unless LEDC approves a written amendment before the costs are incurred.
LEDC will use reasonable efforts to issue reimbursement within thirty (30) days after receiving a complete reimbursement package and verifying satisfactory completion, subject to normal payment procedures and available funds.

• The applicant must keep the funded business open and operating at the approved Luling location for at least thirteen (13) months after reimbursement, unless a longer performance period is stated in the grant agreement.
• For expansion awards above $25,000, LEDC may require a performance period of up to thirty-six (36) months and may tie compliance to jobs, investment, occupancy, or other measurable commitments.
• A default may include false statements, misuse of funds, failure to complete the approved project, failure to maintain required operations or insurance, unauthorized sale or relocation, failure to meet performance commitments, or violation of the grant agreement.
• If a standard award recipient closes, sells, transfers, or relocates the funded business during the first twelve months after reimbursement, LEDC may require repayment of up to one hundred percent (100%) of the award. If the event occurs after six months but before twelve months, LEDC may require repayment of up to fifty percent (50%).
• Expansion award repayment terms will be stated in the performance agreement and may be prorated over the required performance period.
• Amounts due must be paid within thirty (30) days after written notice unless LEDC approves a repayment plan. LEDC may use any lawful remedy to recover funds, costs, and attorney fees.

• LEDC reserves sole discretion to approve, deny, reduce, condition, defer, or cancel an application or award.
• LEDC may amend these guidelines at any time. Unless otherwise stated, the guidelines in effect when a complete application is submitted will govern that application.
• Delivery of these guidelines or acceptance of an application does not create a contract, property right, or entitlement to funding.
• The grant agreement controls if it conflicts with these guidelines. Applicable federal, state, and local law controls if it conflicts with either document.
• If any provision is held invalid or unenforceable, the remaining provisions remain in effect.
• The applicant is solely responsible for the design, construction, quality, safety, maintenance, and operation of the project and must indemnify and hold harmless LEDC and the City as provided in the grant agreement.

LEDC may use the following one-hundred-point framework to compare applications. A standard application should generally score at least sixty-five (65) points. An expansion request above $25,000 should generally score at least seventy-five (75) points. Reaching a threshold does not guarantee funding.

1. Economic Impact - 20 points.
   Consider new or retained jobs, payroll, sales activity, taxable value, customer traffic, and other measurable economic benefits.
2. Private Investment and Leverage - 15 points.
   Consider total private investment, applicant contribution above the minimum match, confirmed financing, and reasonableness of the grant request.
3. Business Stability and Capacity - 10 points.
   Consider years in business, management experience, financial capacity, compliance history, and ability to complete and sustain the project.
4. Project Readiness and Feasibility - 15 points.
   Consider the project scope, estimates, permits, schedule, site control, contractor readiness, and realistic sources and uses of funds.
5. Community and Visual Benefit - 15 points.
   Consider facade and streetscape improvements, safety, accessibility, activation of vacant or underutilized space, and visibility from public areas.
6. Retention or Expansion Benefit - 15 points.
   Consider the risk of business loss without the project, increased capacity, new products or services, use of a larger facility, and redevelopment impact.
7. Alignment with Luling Priorities - 5 points.
   Consider support for identified commercial corridors, downtown, needed retail or service gaps, redevelopment goals, or strategic industries.
8. Local Ownership and Procurement - 5 points.
   Consider local ownership, local employment, and documented efforts to use qualified Luling or Caldwell County vendors.

Total possible points: 10

Suggested Scoring Guidance

• Excellent: 90 to 100 points. The application demonstrates strong readiness, high private leverage, and substantial economic or community benefit.
• Competitive: 75 to 89 points. The application is generally suitable for funding, subject to Program priorities and available funds.
• Minimum consideration: 65 to 74 points. The application may be considered for a standard award, potentially with reduced funding or additional conditions.
• Below threshold: Fewer than 65 points. The application is generally not recommended without documented exceptional circumstances.

[ ] Completed application and signed certifications
[ ] W-9
[ ] Business formation or assumed-name documentation
[ ] Proof of property ownership or lease and owner authorization
[ ] Project narrative and economic-impact statement
[ ] Itemized project budget and twenty-five percent (25%) match documentation
[ ] Contractor or supplier estimates
[ ] Existing-condition photographs
[ ] Plans, renderings, specifications, and materials or colors, as applicable
[ ] Project schedule
[ ] Proof of funding capacity
[ ] Tax, utility, permit, and code-compliance verification
[ ] Expansion financial statements and performance projections, if requesting more than $25,000

The undersigned acknowledges receipt of the LIFT Luling Program Guidelines, understands that submission of an application does not guarantee funding, and agrees that any award will be governed by an executed grant or performance agreement.

Applicant or Authorized Representative: ______________________________
Title: ______________________________________________
Business Name: _______________________________________
Project Address: ______________________________________
Signature: ___________________________________________
Date: ______________________________
Property Owner or Landlord, if applicable: __________________________
Property Owner Signature: ______________________________
Date: ______________________________
Adopted by the Luling Economic Development Corporation Board of Directors on: ____________________.
Approved by the City of Luling, if required, on: ____________________.
Performance Agreement executed on: ______________________.