Improving Texas with Capital
While most states are feeling the blow of low job retention and job loss Texas is thriving thanks to their proper management of the Texas Certified Capital Company (CAPCO). “What is a Capital Company?” is a question that comes to the mind. Well, it is a company that uses certified firms to provide business management and wealth consulting services. Texas Capital company is one that provides financial lending to new and newly started businesses.
By investing in this business and adding the investing feature Texas is reaping the benefits of investing in and helping its small businesses economy by having a strong economy. Most CAPCOs invest in manufacturing companies and larger businesses in general. But Texas Capital Company invests in small businesses by finding ways to help them by providing their services. By doing this it is helping the small businesses capitalize on government incentives. This all helps the smaller businesses by making them more competitive and by aiding in their growth.
The Texas Capital Company was created in 2005 and since then it has been using 600 million dollars to create growth in the state. The state believes in this program so much that the legislature contributed an extra 200 million in funds and credits for the support and investment in its future. The Texas Capital Company receives most of its funding through insurance premiums tax credits and is public-privately owned.
When most of the nation isn’t investing in businesses, investing in newly created or small businesses is down 71 percent, the Texas legislature has allowed the Texas Capital Company to aid not only small and newly created businesses but to also provide aid to low income community businesses. Since its creation in 2005, the Texas Capital Company has aided small businesses to create 1,743 jobs and which will grow along with each business’s rate of growth.
Certified Texas Capital firms have invested 122,158,000 in small Texan businesses. And private investments of 108,267,035 million dollars invested to aid in the creation and or the retention of Texan jobs.
One example of a Texas Capital firm investment that panned out is a company known as Sweet Leaf Tea. Sweet Leaf Tea is Houston, Texas-based and it has received an additional 15 million in funding from Nestle to grow by doubling its distribution compacity. Since the goal of investing in these companies is for them to secure additional aid outside of the firms this is considered an example of the program’s success.
Creating a company that invests in its economy by providing and retaining more jobs was the best thing that Texas could do. The Texas Capital Company has helped build the Texas 1.8 trillion-dollar economy and it is only steadily growing.