The U.S. Government Is Literally Paying People to Start Businesses in 2026!

0:00 Today, I'm breaking down how the United States government is literally paying people to start businesses in 2026. And I'm going to teach you how you can take advantage of these incentives to access capital, [music] to reduce your taxes, increase your cash flow, and to build real wealth. Without further ado, let's dive [music] in. Most entrepreneurs, especially new entrepreneurs, have no idea that there are many government programs to help business owners to get access to funding. But here's the thing, for business owners willing to learn the system, that unused funding represents a huge opportunity. From grants and workhorse incentives to tax strategies and low-interest loans, the government has created many programs to encourage business creation. But the key is understanding where to look and how to apply so you can take advantage of opportunities that most founders completely overlook. So, let's dive in.

0:50 First thing we're going to talk about is state incentives. State incentives can reward business growth. One of the least-talked-about opportunities for entrepreneurs comes from a state economic development program. Nearly every state in the United States offers incentives designed to attract and support businesses that create jobs locally. These incentives can include tax credits, wage reimbursements, workforce training funds, and other forms of financial assistance. But here's how states compete for entrepreneurs. Economic development agencies across the country actively compete to attract businesses. Their goal is very simple. More companies means more jobs, which means stronger local economies. And then, that means more tax revenue. As a result, states offer financial incentives to encourage entrepreneurs to launch and then expand businesses within their borders. These programs exist in both traditional, conservative, and liberal states.

1:46 Whether you're in a large metropolitan area or a rural community, there are likely programs available that reward business activity. Some states provide direct training grants, while others offer tax credits for hiring employees or investing in equipment. For example, certain states provide hundreds of thousands of dollars in workforce development grants. Others offer thousands of dollars per new full-time hires, especially when those jobs are created in rural communities or economically challenged regions. And in some locations, businesses can even receive reimbursements for a portion of their payroll expenses if they operated in designated [clears throat] areas needing economic development. Let's look at some examples together in the state of Texas. The Texas Enterprise Fund is one of the largest business incentive programs in the country. It provides grants to companies that relocate to or expand within Texas as long as they commit to creating jobs and making significant capital investments. Major corporations such as Toyota and Apple have received funding through this program with incentives that are directly tied to the number of jobs they generate in the state. That's amazing.

2:54 Why do they only know about that? North Carolina offers grants to cover the cost of employee training. These programs help businesses upskill their workforce without incurring higher upfront expenses, which is especially valuable for industries needing specialized technical skills or certifications. The state of Georgia. Georgia provides incentives designed to create jobs and attract investments. The job tax credit grants a state income tax credit for each net new job created with enhanced benefits for projects in certain counties. For larger initiatives, the mega project tax credit offers increased credits for significant investments that produce substantial employment, making Georgia an attractive location for expanding businesses. Ohio. Ohio encourages growth and innovation through a mix of tax credits and development programs. The Ohio R&D Investment Tax Credit rewards companies investing in research and technology development.

3:46 Additionally, programs under Jobs Ohio provide workforce training grants and capital investing incentives helping businesses build skilled teams and expand operations while minimizing cost. What about Louisiana? Louisiana combines job creation incentives with training support to attract businesses. The enterprise zone tax credit provides state tax credits to companies that invest in designated areas and create jobs. The LED Fast Start Training Program reimburses parts of employee training costs helping businesses build skilled teams while reducing initial expenses and encouraging local hiring.

4:26 Now, before we move on, here's a quick reality check for high-income earners. Many people making at least $750,000 per year overpay on taxes because their CPA is primarily focused on tax compliance and tax filing. They're primarily not focused on strategic tax reduction. [music] That's fine at lower income levels, but if you are making over 750k, it's expensive for you not to have a tax plan. [music] Our team helps with high-income earners to implement advanced IRS compliance strategies that can literally reduce your tax liability by 50 to 100%. If you want to see what you may have been missing out on, book a call through the link in the description below. Now, back to this video. Finding and applying for business incentives is the next part of this equation because accessing these incentives is often simpler than most people even think, especially entrepreneurs. Many state programs have straightforward online applications, guys, that take less than an hour to complete. The process usually involves registering your business, identifying the incentives you qualify for, and submitting basic documents such as payroll or hiring plans through these portals. Now, a good starting point is searching for your state's economic development incentives. Just type that into Google. Many programs have names like workforce training credits, job creation tax credits, or capital investment reimbursements. [music] These programs are specifically designed to encourage businesses like yours to hire employees, to train your workers, and invest in infrastructure, all things the government wants more of. Now, here's why the government supports small base business owners. Government support for small businesses didn't appear overnight, guys. Much of the current system traces its roots back to the economic struggles of the early 20th century. Do you remember the Great Depression? Do you remember reading about it in your history books?

6:11 Thousands of businesses collapsed, leaving millions unemployed, and devastating local economies. To address this crisis, the government created programs that provided loans, grants, and other financial assistance to struggling businesses. These programs helped save over 100,000 companies and allowed them to survive during one of the most difficult economic periods in the United States history. After World War II, policy makers recognized that small businesses played a critical role in maintaining a healthy economy. Rather than allowing larger corporations to dominate every industry, they wanted to encourage competition and innovation.

6:45 So, supporting smaller companies helped maintain economic balance, and it prevented excessive concentration of power among major corporations. Let's go over some loans that help entrepreneurs maintain ownership. You see, another powerful tool available to entrepreneurs is government-backed business loans. Programs through the SBA provide financing that allows founders to start or acquire businesses without relying entirely on private investors. Now, this type of financing can dramatically change the ownership structure of a company, and instead of giving up equity to investors, entrepreneurs can borrow money through structured loan programs and then retain full control of their business. That means when the company grows in value, the founder keeps the majority of the upside. Here's how to get an SBA loan if you're interested in this. Start by determining which type of SBA-backed loan fits your needs, such as the 7A loan for general business purposes, or the 504 loan for real estate and equipment. Next, prepare a strong application package. You're going to include a detailed business plan with that package, your financial statements with that package, copies of your tax returns, and a clear explanation of how the funds are going to be utilized.

7:49 These are then reviewed by the SBA approved lender. You go through underwriting. Typically, a bank or credit union will underwrite you. They'll review your application, submit it to the SBA for guaranteed approval, and once the SBA approves the loan, the lender finalizes the terms, and then you can access the funds via wire or you can just draw from it. Often with lower interest rates, longer repayment terms, and a reduced personal risk compared to conventional loans. But here's a tax strategy that rewards early investors.

8:14 The US tax code includes powerful incentives for small base business owners. It is powerful. One of the most notable examples is the qualified small business stock provision. Often referred to as QSBS by people in the tax space. This rule allows certain investors and founders to exclude a large portion of capital gains when they sell qualifying shares. Under the right circumstances, individuals who purchase shares in an eligible small business or hold on to their own shares of their own business for at least five years may be able to exclude up to 100% of the gains for federal tax purposes. The maximum exclusion can reach up to 15 million or 10 times the initial investment depending on the situation. For entrepreneurs and early investors, this can be incredibly valuable. And if someone invests in a small company that later grows significantly and gets sold, the profits may qualify for major tax advantages like the one I'm I'm sharing here with you. Instead of losing a large percentage of those gains to taxes, more of the proceeds can remain in the investor's pocket and potentially be reinvested into new business ventures.

9:15 Let's talk about writing off business equipment immediately. Another powerful tool for entrepreneurs are the Section 179 and bonus depreciation deductions. I talk about it all the time on this channel. These rules allow businesses to deduct the cost of certain equipment and assets in the same year that they are purchased rather than spreading the deduction across multiple years. We call that taking depreciation or amortizing an expense. Under the right conditions, businesses can deduct over a million dollars in qualifying equipment purchases. This can include vehicles, machinery, technology, any essential asset used to operate the company. But, the ability to deduct these expenses immediately can improve cash flow and lower the company's taxable burden. For example, a business that purchases a truck or a big tool or manufacturing equipment can write off the full purchase price during the same taxable year. So, this creates an immediate financial benefit encourages companies to invest in the resources that they need in order to continue to grow.

10:09 That's the government creating a tool to help business owners while simultaneously sparking innovation. 100% bonus depreciation was restored in the big beautiful bill of 2025. So, this can lead to a significantly larger year-one deduction. What about revitalizing communities? Hm. You see, through tax incentives, some are specifically designed to encourage development of unutilized or underserved areas. Programs such as historic rehabilitation credits and new markets tax credits reward businesses that invest in certain communities or renovated historic properties. The historic rehabilitation credit allows businesses to receive a percentage of the renovation costs back when restoring qualified historic buildings. This helps preserve historic architecture while also stimulating economic activity in older neighborhoods. Meanwhile, the new markets tax credit program encourages businesses to invest in low-income areas that need economic development.

11:03 Companies that participate may receive substantial tax credits over several years, making these projects financially attractive while benefiting local communities. Here's how wealthy entrepreneurs use the tax code. Highly successful entrepreneurs and investors spend significant time understanding how the tax system works. Rather than simply focusing on generating revenue, they also focus on keeping more of what they earn. Large corporations invest billions of dollars into research and development every single year. The tax code rewards this activity by offering credits that reduce their tax liability. Even smaller businesses can qualify for research and development credits if they are creating new products, software, or technology improvements. The key takeaway is that many of these incentives are not exclusive to giant corporations. Small businesses and startups can benefit from the same rules when they understand how the system works and they structure their activities appropriately. Next is buying businesses with government-backed financing. Entrepreneurs do not always have to start companies from scratch.

12:06 Another strategy is purchasing an existing business using financing programs designed for acquisitions. My friends Cody Sanchez and Pace Morby talk about this all the time. Government-backed loans can make this process more accessible by reducing the amount of capital required upfront. Some loans allow buyers to acquire businesses with relatively small down payments, while additional funding may come from seller financing or outside investors. This approach allows entrepreneurs to take over established companies that are already customer, revenue, and employee-driven. And in certain states, local programs even provide incentives for individuals who purchase and operate businesses in their community. These incentives can reduce the financial risk involved in business acquisitions as a whole while supporting local economies at the exact [music] same time. But here's the advantage of business debt.

12:55 There's a major difference between consumer debt and business debt. Credit cards often carry extremely high interest rates. We all know this. That can quickly become overwhelming if not controlled. Business loans, especially those backed by government programs, they're frequently often better and have more favorable terms. Some small business loans provide relatively low interest rates and flexible repayment schedules. You get plenty of time to repay back these loans sometimes. Certain microloan programs offer funding without requiring large down payments, so they may give you higher interest rates, making them accessible to entrepreneurs with limited capital and not a big credit history. But when used responsibly, this type of financing can help entrepreneurs purchase equipment, expand their operation, or acquire existing businesses that are already in existence. The key is using debt strategically rather than relying on high-interest consumer credit card debt. What about investing in education and mentorship?

13:48 One often overlooked advantage of running a business is the ability to deduct certain educational expenses related to improving the company. What is ordinary necessary in the pursuit of income can be deductible. Training programs, consulting services, and professional development can often be categorized as ordinary and necessary business expenses. This means entrepreneurs who invest in learning new skills or hiring experts to improve their business operations may be able to deduct those costs during tax season. Instead of viewing education as purely an expense, it can become an investment that improves the business while also providing tax benefits at the exact same time. Successful founders frequently seek mentorship and guidance from experienced professionals. I know I spend quite a bit on my professionals that I'm getting guidance from. Learning from people who have already built successful businesses can shorten the learning curve and help entrepreneurs avoid costly mistakes. What about taking advantages of opportunities that already exist? The reality is that many government programs designed to support entrepreneurs are already written and in existence. Billions of dollars in incentives, credits, and funding opportunities are available each year for you. The challenge is that most people just don't know where to look.

14:58 They're being told this for probably for the very first time on my YouTube account. Guys, these programs are not designed as handouts. They typically require entrepreneurs to build legitimate businesses, create legitimate jobs, and have or invest in right communities. However, for those who are willing to put in the work, the support can make a significant difference. Entrepreneurship will always involve risk, guys, but understanding how to leverage available resources can reduce that risk and accelerate growth at the same time. Instead of ignoring these opportunities, smart founders like myself, we take the time to learn the rules and then we use them to our advantage. Building businesses with strategic support is the plan.

15:36 Ultimately, the government wants businesses to succeed because thriving companies create jobs, they drive economic growth, and they strengthen communities. That is why so many programs exist to encourage entrepreneurship and investments in the first place. Now, for entrepreneurs who understand these systems, the benefits can be substantial. Grants, tax credits, training programs, and financing options can help businesses grow faster and operate more efficiently in 2026 and beyond. When combined [music] with strong business fundamentals, these incentives become powerful tools for building long-term success. The biggest mistake many entrepreneurs make is assuming >> [music] >> these opportunities are unavailable to them. In reality, they are accessible to anyone willing to learn how the system works. By taking advantage of these programs, founders can build stronger businesses and keep more of the wealth that they create along the way. My name is Carlton Dennis. I hope you enjoyed this video. As always, like, comment, subscribe. We are planning on putting out more videos just like this one for you [music] in the future. Thank you guys so much for watching. I look forward to seeing you on the next video. Cheers.