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New Texas Small Business Credit Initiative Launches in 7 Days

A New Loan Program for Socially and Economically Disadvantaged Individuals (SEDI), Very Small Businesses (VSB) or other business owners


Texas will administer two programs under TSBCI: a Capital Access Program (CAP) and a Loan Guarantee Program (LGP), which are open to eligible new and existing Texas businesses with 499 or fewer employees.


These programs will assist small business growth and create new jobs through increased access to small business funding. In addition, the TSBCI programs will assist all small businesses, but will focus on traditionally marginalized and those that have been impacted by the COVID-19 pandemic. TSBCI is administered by EDT’s Economic Development Finance Division, within the Office of the Governor, on behalf of the U.S. Department of the Treasury.


For more information about the federal SSBCI program, please visit the U.S. Department of the Treasury’s website. Additional guidance, forms and other resources related to Texas' TSBCI program will be posted to this webpage as details become available.

Financial institutions may enroll loans from borrowers that meet the following criteria: Very Small Businesses (fewer than 10 employees) and small businesses (fewer than 500 employees). These eligible businesses must also be for-profit organizations, domiciled in Texas, and have a minimum of 51% of their employees currently located in Texas. Eligible Uses of Funds Loan proceeds from the CAP may be used for:


• Start-up Costs,

• Working Capital,

• Franchise Fees, or

• Acquisition of equipment, inventory, or services used in the production, manufacturing of delivery of a businesses’ goods or services, or in the purchase, construction, renovation, or tenant improvements of an eligible place of business that is not for passive real estate investment purposes Loan Criteria

• Loans of $5,000 up to $5 million may be enrolled in the CAP.

• Both the lender and the borrower must make matching premium payments of up to 3.5% of the loan principal to the LLR account.

• The State will match the combined amount the borrower and the lender contributed to the LLR.


Resources:


List of All of the State of Texas' Financial Incentive Programs

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