San Antonio and Central Texas continue to attract new development across retail, dining, logistics, and residential sectors, creating both opportunities and challenges for local businesses. While the region experiences ongoing growth, small businesses are navigating increased competition and construction disruptions through a mix of city programs and strategic adaptations.

Broader Texas Economic Context

Texas remains one of the nation’s most resilient state economies, with a GDP of $2.7 trillion that ranks as the eighth-largest economy globally if it were a country. Following a strong 3.9% expansion in 2024 that outperformed national averages, the state added approximately 196,000 jobs over the past 12 months, maintaining unemployment around 4.0%.

However, recent data indicates a moderation in growth momentum. Texas employment declined in June 2025, marking a shift from robust job gains earlier in the year, while business surveys show increasing uncertainty around tariffs and supply chain policies. Construction activity—particularly in residential markets—has softened, and business leaders cite policy uncertainties as constraining investment decisions.

Despite these near-term headwinds, Texas continues to benefit from its diversified economy spanning energy exports, defense manufacturing, and corporate relocations. The state’s favorable business climate, infrastructure advantages, and skilled workforce position it to navigate current uncertainties while maintaining its role as a key driver of regional economic growth.

This dynamic backdrop—combining strong fundamentals with current policy and market uncertainties—provides the broader context for Central Texas’ commercial development activity and the business environment that San Antonio entrepreneurs and investors are navigating in 2025.

Development Activity Continues Across the Region

Development projects span luxury homes, mixed-use retail centers, distribution hubs, and major commercial corridor improvements. Key areas of activity include:

• Restaurant and retail activity in San Antonio’s downtown, Pearl District, and Broadway corridor, with new openings and renovations in progress.
• Growth in Austin’s South Austin Entertainment District and expansion of grocery distribution centers supporting local supply chains.
• Logistics investments, including food and goods distribution facilities, strengthening connections between local businesses and broader markets.

City Support Programs: Mixed Results for Small Businesses

The city’s approach to small business support shows both expansions and contractions in 2025:

Construction Relief Programs

• Stabilization Grants: Up to $35,000 for businesses that can demonstrate revenue losses from city construction projects lasting 12+ months. Requires proof of financial impact.
• Mitigation Grants: $2,000 grants for businesses preparing for upcoming construction, focusing on marketing and promotion expenses to maintain visibility during construction periods.
• Recovery Grants: $5,000 grants for businesses impacted by recently completed construction projects.

Zero-Interest Lending Partnership

The city partners with LiftFund on a $2 million program over two years providing zero-interest loans from $500 to $100,000 for small businesses. Note: Applications for this program are currently closed as available funds have been utilized, with new funding expected October 1, 2025.

Reduced Nonprofit Support

Important context: The city ended direct operational funding ($517,000) for three small business support nonprofits—Prosper West, SAGE, and Southside First—in the 2025 budget. While these organizations now receive indirect support through a $1.5 million LISC partnership covering six nonprofits, the shift represents a significant change in the city’s small business support structure.

Current Business Support Ecosystem

Businesses can access support through:

• Remaining City Programs: Construction grants, Launch SA (administered by Geekdom), and partnership programs.
• Nonprofit Network: Maestro Entrepreneur Center, LISC San Antonio, and SCORE San Antonio provide mentorship, technical assistance, and networking.
• Lending Partners: LiftFund continues as the primary microlender for city-partnered programs.

Strategies for Business Growth

Local businesses adapting successfully are:

• Expanding online presence to reach broader customer bases beyond foot traffic.
• Strategic hiring focused on customer service and operational expertise.
• Enhancing customer experience through space improvements and loyalty programs.
• Leveraging available resources from remaining nonprofit partners and city programs.

Looking Ahead

San Antonio’s business environment reflects both opportunity and transition. While development continues to drive growth, small businesses must navigate construction challenges with fewer direct city-supported nonprofit resources than in previous years. Success increasingly depends on businesses’ ability to adapt independently while making strategic use of remaining support programs.

For current program information: Check program availability and application deadlines, as funding cycles and eligibility requirements change regularly.