SMALL BUSINESS OUTDOOR SPACES

• Eligible Project Examples
  • Canopy installation and/or repair
  • Exterior lighting
  • Umbrellas, fans, and other cooling/heating systems
  • Outdoor furniture
  • Decorative fencing (excluding chain-link)
• Ineligible Project Examples
  • Construction of a new structure
  • Parking lots, areas, or spaces
  • Burglar bars
  • Sidewalk installation or repair

There are two sets of eligibility criteria — the first for both grant tracks, the second for Category B applicants only.

Primary Eligibility Criteria

• Business must be located within the City of Laredo. Check your address using this map.
• Annual gross sales between $10,000 and $2 million
  • Gross sales are determined based on Line 1 of Schedule C or Line 1a of 1120, 1120S, or 1065
• Experienced negative impact on operations due to the pandemic
  • For businesses formed prior to March 15, 2020, negative impact is evidenced by a decrease in gross revenue on business tax return between 2019 and 2020, 2021, 2022 or 2023. (Line 1 of Schedule C or Line 1a of 1120, 1120S, 990/990EZ or 1065)
  • For businesses formed March 15, 2020 to February 21, 2021, negative impact is evidenced by an attestation of negative impact as a result of the emergency orders, shelter in place, stay at home or continuing emergency measures which were issued beginning March 16, 2020 and were in effect until February 21, 2021. (Template provided in application)
  • For businesses formed between February 22, 2021 and May 11, 2023, negative impact is evidenced by an attestation that applicants started their business as a result of the pandemic. (Template provided in application)
• Be in good standing with the Texas Comptroller’s Office, if applicable
• Business activity not within a prohibited industry
  • Ineligible businesses include: Franchisors, home based businesses (Category B only), gambling/gaming businesses, sexually oriented businesses, payday and auto loan providers, tobacco, CBD or vape stores, government-owned and/or occupied buildings. See the list of ineligible NAICS codes here.
• Business operating on or before May 11, 2023 and currently operating

Secondary Eligibility Criteria (Category B Applicants Only)

• Be in good standing and registered with the City of Laredo Tax Office, as well as current with local taxes and fees
• Must have no current unpaid code enforcement liens or violations of any local, state, federal laws
• Must be current on all taxes including payroll, sales, unemployment, property, state, and federal
• If applicable, plans must be approved by the City of Laredo Historical District/Landmark Board
• Meet all codes and ordinances of the City of Laredo
• Secure any necessary permit(s) from the City of Laredo before work may commence. Applications will not be considered if any code or ordinance violations exist.
• The grant cannot be used to pay for work that is currently in progress or has been already completed.
• The applicant’s project must be completed within 120 days of receipt of funds.
• Once the applicant advises the City of Laredo that work is complete, the Economic Development Department will schedule a formal project inspection along with the applicant to ensure the project complied with all terms and conditions of the program, and to verify all expenses total the grant request.

All Applicants

• Current valid driver’s license or government-issued photo ID
• Business formation documents: Assumed Name Certificate/DBA filed with Webb County or articles of formation/incorporation filed with the Texas Secretary of State
• Copy of the most recent business utility bill (water, gas, electric)
• Most recent business bank statement (personal bank statements will be accepted if business activity is clearly identifiable) 
• Proof of negative impact: Tax returns from 2019 and one other year (2020, 2021, 2022 or 2023) to show decrease in gross sales, or 2024 filed tax return plus attestation listed above, based on formation date
• List of board of directors (nonprofits only)
• 501c3 determination letter (nonprofits only)
• Grant resolution (LLCs, corporations, partnerships and nonprofits only — template provided in application)

Category B Applicants

• • Quote from a contractor that is registered as a business in the City of Laredo detailing total project costs. Proposals should include design layouts that show dimensions, proposed colors, and any other design concepts.
  • At least five photos of the current state of the building BEFORE any improvements 
  • Business owners renting their commercial space must provide a notarized letter of approval for improvement from the property owner
  • Attestation of no duplication of federal funds

The application opens October 3, 2025 and will remain open until all funds are exhausted. Applications will be reviewed on a first come, first served basis.

1. Complete, submitted applications will be reviewed by LiftFund. For Category B applicants, the City of Laredo will review the application for the secondary eligibility criteria.

2. If requirements are met, the City will schedule a consultation with the applicant to review permitting/licensing requirements for the intended project. 

3. Once all secondary eligibility requirements are met, the City will notify LiftFund. LiftFund will issue an award agreement via Docusign. 

4. Upon completion of the Docusign, all approved applicants must complete a brief virtual verification call with LiftFund and submit a voided check for the account into which funds will be deposited. 

5. Within 7-10 days of completion of Docusign, virtual verification, and voided check, grant funds will be deposited. 

6. The Category B grant recipient has 120 days to complete the project. 

7. Upon completion of the project, Category B applicants must notify the City and the City will complete an inspection of the work. 

8. Within 60 days of completion of the project, Category B applicants must submit a final report to the City, including receipts for all project expenditures and project contractor’s certified payrolls. All Final reports must be submitted no later than December 31, 2025. Failure to submit the final report may result in disqualification from future grant programs or mandated repayment of funds. Grant repayment may also be required if improvements completed deviate from those described in the application. 

Recipients in both categories are required to complete an impact survey in January 2027.