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

Name: The U.S. Government is Literally Paying People to Start Businesses in 2026
Uploaded: 2026-02-13T16:01:11Z
Channel: Codie Sanchez

February 13, 2026

Codie Sanchez host

Watch on YouTube government funding for small business tax credits and deductions sba loans business incentives founder mentorship tax optimization business acquisition

Codie Sanchez explains how entrepreneurs can access over $50 billion in unused government funding through state business incentives, SBA loans, and tax credits designed to support small business growth. The episode reveals lesser-known programs that can subsidize payroll, training, equipment purchases, and business acquisitions—effectively allowing founders to build with government money rather than personal capital or investor dilution.

Key takeaways

• Over $50 billion in annual government small business funding goes unused each year; entrepreneurs can access it through state economic development agencies by searching for "economic development incentives" in their state.
• Workforce training credits and wage reimbursement programs vary by state—Texas offers up to $500K, Indiana $5K per hire, and Tennessee reimburses 50% of payroll in high-poverty areas, allowing bootstrapped founders to hire and scale without personal capital.
• QSBS (Qualified Small Business Stock) allows investors to exclude up to 100% of capital gains (up to $10 million) when selling qualifying C-corp shares held for 5+ years, creating tax-free exits that larger tax credits enable reinvestment into new deals.
• Section 179 deductions let business owners immediately write off up to $1.25 million in equipment and vehicles, while WOTC (Work Opportunity Tax Credit) provides $2,400-$9,600 per hire from qualifying groups like veterans.
• Switching from an LLC to S-corp election can save six figures annually by reducing self-employment tax; a founder earning $500K in profit pays 15.3% SE tax on the full amount as an LLC, but only on their W-2 salary as an S-corp.
• SBA loans offer 2-13% interest rates (far below credit card rates) with minimal down payments, and some state programs provide 2-5% rates, making business acquisition debt a strategic tool when structured correctly.