Eagle Pass Riskind Small Business Incubator Raises Questions Over Federal Grant Original Intent, Professional Services, and Accountability
By Jose G. Landa, Copyright 2026 Eagle Pass Business Journal, Inc.
The City of Eagle Pass Riskind Business Incubator, developed through a $3.5 million federal grant and an additional $875,000 in local funding, is raising questions about whether the city has established the professional services, business development programs and measurable objectives necessary to fulfill the original purpose of the publicly funded project.
The $4.375 million investment was intended to help aspiring entrepreneurs develop financially sustainable businesses that could eventually graduate from the incubator and establish independent commercial operations throughout Eagle Pass.
The Eagle Pass City Council is scheduled to discuss and possibly take action at their meeting on Wednesday, November 4, 2026 at 5:30 P. M. on whether to approve a commercial lease for a “Despacho Karoke Bar” at the small business incubator.
This agenda item has raised legitimate questions from local small business owners and taxpayers. Among the questions are whether the City has abandoned the original intent of the $3.5 Million EDA federal grant to stimulate the development and growth of small businesses in the community? Another question raised is whether the City has hired experts in managing small business incubators for the Riskind Building incubator? Additionally, another question raised is whether the City has a written development and accountability plan for it?
The Eagle Pass Business Journal has learned from some local small business owners who requested a lease within the Riskind Building incubator, but were declined for various reasons. This raises the question whether the City is playing politics or favoritism as to who gets a lease at the Riskind Building incubator?
Eagle Pass downtown property owners and realtors pointed out there are many commercial properties for rent or sale in downtown Main Street for any Karoake Bar to open business in. Does a Karoake Bar at the Riskind Building satisfy the stringent federal grant guidelines for a small business incubator?
The success of a business incubator cannot be measured simply by constructing a building, renting commercial space or holding ribbon-cutting ceremonies.
A successful incubation program requires qualified professionals, structured business plans, financial guidance, technical assistance and measurable results demonstrating that participating businesses are progressing toward economic independence.
Among the professionals necessary are business development advisors, certified public accountants, business attorneys, commercial lending specialists, marketing professionals, technology consultants and experts in business operations and commercial real estate.
These professionals assist entrepreneurs with business plans, financial projections, bookkeeping, taxes, financing, marketing, employee management and commercial leasing.
Without these services, an incubator risks functioning primarily as a publicly funded commercial rental property rather than an economic development program designed to create successful businesses.
The Eagle Pass project was announced in 2021 with expectations of creating approximately 35 jobs and generating an estimated $200,000 in private investment.
City officials subsequently promoted plans to provide flexible leases, shared office equipment, mentoring, networking opportunities, access to capital and technical resources intended to help entrepreneurs overcome obstacles that frequently prevent new businesses from succeeding.
In January 2025, the city announced a partnership with Sul Ross State University to establish a business accelerator program at the Riskind Building.
The partnership was presented as an opportunity for university professors and industry professionals to provide mentoring, training and additional business development resources.
That announcement raises questions about how many entrepreneurs have participated, what professional services have actually been delivered and whether participating businesses have successfully expanded into independent commercial locations.
A properly structured incubator should evaluate prospective entrepreneurs and establish individualized business development plans identifying financial needs, potential customers, marketing strategies and realistic growth objectives.
Participants should receive continuing professional assistance while their progress is evaluated through measurable indicators including revenues, profitability, employment, financing and operational stability.
Successful businesses should eventually graduate and establish independent operations, allowing additional entrepreneurs to enter the program.
Depending on the industry, incubation periods may range from approximately one to three years, with extensions justified by documented progress.
The objective should not be providing permanent subsidized commercial space but preparing entrepreneurs to compete successfully in the private marketplace.
Research supported by the U.S. Economic Development Administration has identified professional advisory networks, admission and graduation policies, effective management and performance evaluations as important characteristics of successful incubation programs.
For Eagle Pass, several questions deserve public examination.
Does the Riskind Business Incubator employ a qualified director specifically responsible for developing small businesses?
How many accountants, attorneys, business advisors, marketing specialists and lending professionals currently assist participating entrepreneurs?
How many individuals have enrolled since the building opened in September 2024, and how many businesses have successfully graduated and established independent commercial operations?
How many jobs have been created, how much private investment has been generated and what measurable results have emerged from the partnership with Sul Ross State University?
Another important consideration involves how much the city spends maintaining the building compared with the amount invested directly in professional business development services.
Although commercial leasing was contemplated as part of the original project, renting space does not necessarily demonstrate that the incubator has accomplished its broader economic development objectives.
Likewise, the absence of publicly presented graduation figures does not establish that no businesses have benefited. Determining success requires examining participation records, professional services delivered and documented economic outcomes.
The federal investment represented a significant opportunity to strengthen entrepreneurship, encourage private investment, create employment and expand the Eagle Pass economy.
However, achieving those objectives requires considerably more than providing entrepreneurs with a physical location. It requires qualified professionals capable of helping small businesses develop, survive, expand and eventually operate independently.
As the Riskind Business Incubator continues operating, the City of Eagle Pass faces an important question concerning the return on its original $4.375 million public investment.
How many aspiring entrepreneurs have entered the federally funded incubator and emerged as successful, financially independent business owners contributing to the Eagle Pass economy?
The answer would provide one of the clearest measures of whether the project is fulfilling the economic development purpose for which it was originally established.
