In times of emergencies, it’s always best to be prepared, especially for small businesses and entrepreneurs. The Texas Micro-Business Disaster Recovery (MBDR) Loan Program is now open and accepting applications from Community Development Financial Institutions (CDFIs) interested in participating. Eligible micro-businesses should reach out to a lender on our approved CDFI participant list to inquire about loan details. Micro-businesses may also reach out to a preferred CDFI to encourage participation.
If you are a micro-business in an area that has been affected by a local, state or federal declared disaster in Texas, we encourage you to explore this program and see how it may benefit your business. Please check the Texas Division of Emergency Management’s disaster webpage to find updates on state disaster declarations. You should also check local disaster declarations (e.g. a declaration by a county judge or mayor) and federal disaster declarations in your area.
If you are a CDFI interested in applying to participate in the program, we encourage you to do so now to be prepared before a potential disaster strikes.
The Texas MBDR Loan Program has available funding of up to $5,000,000 through August 31, 2025.
Please see below to learn more about this important opportunity and please share this information with your small business network. Do not hesitate to reach out to the Texas MBDR Loan Program team at MBDR@gov.texas.gov 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?
Starting October 1, 2024, eligible CDFIs can apply to participate in the Texas MBDR Loan Program via the participation agreement, which can be obtained by emailing MBDR@gov.texas.gov. 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.