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Capital Library · Grants

Grants & incentives

Free money is rare, but incentives are not. Most help for entertainment and hospitality businesses comes as tax credits, local grants and economic development deals. Here is where to look and what to expect.

Last reviewed November 2026Educational only. FEClife is not a lender.
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The honest truth about grants

What most “business grant” ads leave out.

  • SBA does not give grants to start or grow a business. SBA grants go to research companies and nonprofit partners. Anyone promising an “SBA grant” for your venue is selling something.
  • Most incentives are tax credits, not checks. Credits lower the taxes you owe, often for hiring, tips, child care or investing in certain areas. Your CPA claims them.
  • Local beats federal for venues. Cities, counties and states offer the grants most likely to fit an FEC or restaurant: facade, Main Street, tourism and job-creation programs.
  • Never pay to apply. Legitimate public grants do not charge application fees. Search Grants.gov and your state agency directly.
Federal tax incentives

Credits hospitality operators can claim.

Confirm eligibility and timing with your CPA. Figures reflect law as of November 2026.

FICA tip credit (Section 45B)

Restaurants and bars

Gives back the employer's share of Social Security and Medicare tax paid on employee tips above the federal minimum wage. Since 2025 it also covers salons, barbershops and spas.

  • Roughly 7.65% of qualifying tips
  • Claimed on IRS Form 8846
  • Can be worth thousands per location each year
Good fit for an FEC: Any venue with tipped bar, restaurant or party staff.
Official source

Employer child care credit (Section 45F)

Expanded for 2026

A credit for helping employees with child care: an on-site center, contracted spots or payments to a provider.

  • 40% of qualified costs (50% for small businesses)
  • Annual cap of $500,000 ($600,000 for small businesses)
  • New for tax years starting in 2026
Good fit for an FEC: Venues struggling to hire and keep parents on staff.
Official source

Work Opportunity Tax Credit

Expired, watch for renewal

Rewarded hiring from targeted groups such as veterans and long-term unemployed workers. It expired for wages paid after December 31, 2025, and Congress is considering a retroactive extension.

  • Was up to $2,400 per eligible hire (more for some veterans)
  • Required a pre-screening form within 28 days of hire
  • Check status before you count on it
Good fit for an FEC: High-volume hourly hiring.
Official source

Opportunity Zones

Now permanent

Tax benefits for investors who put capital gains into businesses and real estate in designated low-income areas. Made permanent in 2025, with a new map of zones taking effect January 1, 2027.

  • Investors defer and reduce capital gains tax
  • Extra benefit for rural zones
  • Useful when raising investor money for a new build
Good fit for an FEC: A new venue or redevelopment in a designated zone.
Official source
State programs

Starter list: the largest FEC markets.

Every state has an economic development agency. Most programs reward job creation or capital investment and are negotiated before you commit to a site. Start the conversation early.

StateAgencyPrograms to ask about
TexasTexas Economic Development & TourismTexas Enterprise Fund, local Chapter 380/381 agreements, skills training grants
FloridaFloridaCommerceJob Growth Grant Fund, local tourism and CRA incentives
CaliforniaGO-BizCalifornia Competes tax credits and grants, local enterprise zones
GeorgiaGeorgia Dept. of Economic DevelopmentJob Tax Credit (larger in less developed counties), Quick Start training
OhioOhio Dept. of Development / JobsOhioJobsOhio grants, Ohio Job Creation Tax Credit
PennsylvaniaPA Dept. of Community & Economic DevelopmentSmall Business First Fund loans, Keystone Opportunity Zones
North CarolinaNC Department of CommerceOne North Carolina Fund, Rural Building Reuse grants
IllinoisIllinois DCEOEDGE tax credit, Enterprise Zones, Advantage Illinois
New YorkEmpire State DevelopmentExcelsior Jobs Program, regional council grants
ArizonaArizona Commerce AuthorityQuality Jobs Tax Credit, Arizona Competes Fund
Local and utility programs

The grants most likely to fit a venue.

Facade and storefront grants

Cities and downtown districts often match part of the cost of exterior improvements: signage, lighting, windows and paint.

Main Street programs

Local Main Street organizations run small grants, low-interest loans and marketing support for businesses that draw visitors downtown.

Learn more

Tax increment financing (TIF)

Future property tax growth from your project helps pay for site work, parking or infrastructure. Negotiated with the city before you build.

Property tax abatements

Counties may reduce property taxes for several years in exchange for jobs and investment, especially for large new builds.

Tourism and event grants

Visitor bureaus and tourism councils fund events and marketing that bring in out-of-town guests. Tournaments and seasonal festivals often qualify.

Utility rebates

Electric and gas utilities pay rebates for LED lighting, efficient HVAC and kitchen equipment. Check your utility's business rebate page before buying.

Where to search

Official places to find programs.

Grants.gov

The official search for every federal grant. Most fit nonprofits and governments, but check your category.

Visit

Your state's economic development agency

Ask for the business incentives or site selection team. They know local programs too.

Small Business Development Centers

Free advisers who track state and local programs and help with applications.

Visit

Your city or county

Economic development, downtown and planning offices run facade, TIF and abatement programs.

Keep exploring

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Independent information. Your decision. FEClife is not a bank, lender, broker, tax adviser, investment adviser or grant administrator. Programs, tax rules and provider offerings change; confirm current details with the program, the provider and a qualified professional before making decisions.