Organizational Eligibility

Non-profit organizations, governmental organizations, schools, for-profit entities impacting Texans, and auxiliary mortgage loan activity companies (see Appendix A, Definitions) licensed by SML are eligible to apply for grant funding. Other than auxiliary mortgage loan activity companies, eligibility is not open to financial service providers, or any entities regulated by the Finance Commission of Texas. 

An Applicant’s program must accomplish the following: 

• Align with MGF goals or strategies. 
• Demonstrate effective evaluative tools and metrics, including the ability to collect and report required data in the semi-annual report. 
• Predict or provide evidence of program impact. 
• Provide longitudinal evidence of performance and outcomes at the end of the grant cycle including the ability to demonstrate adequate return on investment and documented strategic goals. 

Organizations are eligible to apply if the answer to all the following questions is ‘No’: 

• Does the organization hold a license or registration regulated by SML OR the Teas Finance Commission other than an auxiliary mortgage loan activity company licensed under Finance Code Chapter 156? 
• Will any of the funds be used to create a new company or business venture? 
• Will any of the funds be used to pay tuition or other expenses for a staff member to attend college or professional school? 
• Will any of the funds be used to administer or deliver the program to persons who do not reside in Texas? 
• Will the organization require the entire grant amount request to sustain the program or business operations? 
• Will any of the funds be used to purchase capital expenditures (e.g. real estate, or any item with a useful life of more than one year and valued over $5,000)? 
• Does the organization object to or anticipate issues complying with the reporting requirements listed in the MGAM? 
• In the past ten years, has any state or federal regulatory authority ever found that the organization violated state or federal Equal Employment Opportunity laws? 
• Will any of the funds be used to support programs or activities that do not align with the MGF mission and objectives identified in the MGAM?.

Maximum Grant Awards

• The Commissioner determines the funding available and allocated to each of the purposes of Finance Code § 156.554(b). 
• The aggregate award amount is determined by the Commissioner prior to each grant cycle.
• Grants range from $5000 to $100,000.

Expenditure of Funds and Reimbursement Requests

Grantees may use the grant funds only for allowable expenditures as identified in the Grantee’s application and authorized agreement pursuant to the Texas Grant Management Standards (TxGMS) adopted by the Texas Comptroller of Public Accounts pursuant to Chapter 783 of the Texas Government Code. 

Grant funds will only be awarded on a cost reimbursement basis for all actual, allowable, and allocable costs incurred by a grantee pursuant to the grant agreement. Expenses that were incurred before the beginning or after termination of the grant agreement are not eligible for reimbursement. 

Grantees must submit reimbursement requests using the prescribed semi-annual report. Each reimbursement request must contain legible supporting documentation for all amounts shown in the request.