Each applicant to the fund undergoes a thorough 11-step due diligence process. Corporate activity, financial standing, tax status, legal issues, credit ratings, and estimated economic impacts, as well as the business climates of competition locations are assessed for each project and taken into consideration for all award decisions.
Award dollar amounts are determined using a standardized analytical model applied uniformly to each TEF applicant. This model assures that the State of Texas will see a full return on its investment within the period of a project contract, due to the resulting increase in estimated sales tax revenues. Variations in award amounts are influenced by the number of jobs to be created, the expected timeframe for hiring, and the average wages to be paid.
Lastly, the Governor, Lt. Governor, and Speaker of the Texas House must unanimously agree in favor of a project in order for an award to be granted.
TEXAS ENTERPRISE FUND “11 STEP PROCESS”
Due Diligence and Project Analysis
STEP
1. TEF Program Application
2. Project Executive Summary
3. Applicant Management and Current News Research
4. Current Corporate Tax Status Verification
5. Business Climate Evaluation and Comparison
6. Economic Impact Assessment based on Third-Party Report
7. Applicant Corporate Financial Analysis
8. Applicant Credit Assessment
9. Review of Local and State Economic Incentive Package
10. Project Cost-Benefit Analysis & Return on Investment
11. Project Clawback Analysis & Calculation
What differences did Governor Perry's administration believe existed between the business model that Countrywide Financial was operating with, and that which caused Penny Pritkzer’s Sub-prime Chicago Family-owned bank to FAIL, in 2001?
" ...we are unveiling its crowning jewel. I am proud to announce that the state of Texas is investing $20 million from the Texas Enterprise Fund to help Countrywide Financial""You can consider the Countrywide expansion to be “Exhibit A” as to why we need to continue to invest state dollars in the Texas Enterprise Fund.
Angelo Mozilo, thank you"--Governor Ricardo Perry