Texas Small Businesses Face Tax Shifts, Disaster Loan Debate, and a Mixed Outlook
From August, several policy changes and economic signals have emerged that matter for small businesses across Texas. Property tax exemptions, disaster recovery loan reforms, and shifting optimism levels are shaping how owners plan for the year ahead.
Inventory Tax Relief Hinges on November Vote
In August, lawmakers passed HB 9, raising the exemption for business personal property: inventory, tools, furniture, and equipment used for income, from $2,500 to $125,000 of appraised value. (TML)
If approved by voters in November, this exemption will take effect January 1, 2026, potentially saving Texas small businesses $500 million annually. (NFIB Texas)
Action Step:
Review your inventory and equipment records now. Tax assessors will expect clean documentation of what you own and how it’s valued.
Talk with your CPA before year-end to understand how this exemption could lower your property tax bill if voters approve it.
Push to Fix Disaster Recovery Loans
In September, NFIB Texas pressed lawmakers in a special session to expand and merge the state’s small business disaster loan programs. The goal: simplify eligibility and allow funds to cover payroll. Currently, many owners find disaster loans too complex or restrictive. (NFIB Texas)
With Central and South Texas experiencing repeated flooding events, disaster recovery funding is a pressing issue for Bexar County firms.
Action Step:
If your business is in a flood-prone area, document damages, save receipts, and monitor state updates.
Prepare in advance: line up a relationship with a banker or financial advisor now and create a scenario plan, so you’re ready to apply quickly if reforms pass.
Optimism Up, Uncertainty Still High
The NFIB Small Business Optimism Index ticked up in August to 100.8, above the long-term average of 98. But the uncertainty index, while down four points, remains high at 93. (NFIB SBET Report, August 2025)
This reflects cautious optimism: some owners see growth opportunities, but many remain unsure about future costs, regulations, and taxes.
Action Step:
Build financial “stress tests” into your forecasts. Assume costs may rise or revenues may dip, and plan buffers accordingly.
Avoid overextending, focus on strengthening cash flow, and keep financing options open.
Why It Matters
For small businesses in San Antonio, these developments are more than headlines. The outcome of November’s vote could reshape tax bills. Disaster loan reforms could determine whether firms can recover quickly after floods or storms. And the optimism index shows opportunity exists, but only for those prepared to navigate uncertainty.
At Emerge and Rise, we remind business owners that planning ahead means more than watching the news. It means building relationships with trusted advisors, bankers, and partners before challenges hit.
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