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Dear Texas Small Businesses, Financial Institutions & Economic Development Partners,
Are you ready? Hurricane Season is here, running June 1 to November 30. Now is the time to ensure our small businesses and entrepreneurs have access to funding when they need it most.
Through Community Development Financial Institutions (CFDIs), the Texas Micro-Business Disaster Recovery (MBDR) Loan Program offers crucial financial support to eligible micro-businesses struggling to access capital following local, state or federally declared disasters.
➡️ CDFIs: The Texas MBDR Program is open and accepting applications. Now is the time to apply to participate in the program — before disaster strikes. The Texas MBDR Loan Program has available funding of up to $5,000,000 through August 31, 2025.
➡️ Micro-Businesses: If your business with not more than 20 employees is located in an area that has been affected by a local, state or federally declared disaster in Texas, you may qualify for support. We encourage you to explore this program and see how it may benefit your business.
Take the next steps by contacting a lender on the approved CDFI participant list or by encouraging your preferred CDFI to apply for the program.
For the latest on disaster declarations in your area, visit the Texas Division of Emergency Management for state disaster declarations and FEMA for federal disaster declarations. You can also check for local disaster declarations (e.g. a declaration by a county judge or mayor) by visiting local government webpages.
Together, we can keep our Texas small businesses strong and prepared. Please help us share this opportunity across your small business networks and as always, do not hesitate to reach out to our team at [email protected] if you have any questions.
Texas MBDR Loan Program Team
Texas Economic Development & Tourism Office
Office of the Governor
Texas Micro-Business Disaster Recovery (MBDR) Loan Program
The Texas MBDR Loan Program was created during the 87th Legislative Session (House Bill 3271) and signed into law on June 18, 2021, by Governor Greg Abbott to facilitate loans from CDFIs to micro-businesses affected by declared disasters.
Type of Financing
The Texas MBDR Loan Program provides zero-interest loans to eligible CDFIs for purposes of making interest-bearing loans to qualifying micro-businesses that have difficulty in accessing capital following a declared disaster. All income received on a loan made by a CDFI participating in the program is the property of the financial institution. Income received on a loan includes the payment of interest by a borrower micro-business and the administrative fees assessed by the CDFI.
Who can Apply?
Eligible CDFIs can apply to participate in the Texas MBDR Loan Program via the participation agreement, which can be obtained by emailing [email protected]. Once a local, state or federal disaster has been declared in Texas, CDFIs may then apply to enroll loans from micro-businesses that meet the eligibility criteria.
For more information about the Texas MBDR Loan Program and eligibility criteria for CDFIs and micro-business borrowers, as well as the list of approved CDFI participants and FAQs, please visit the program website at the link below.
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