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Texas small business lending programs

The government-backed programs a lender can use in Texas: the state’s own programs, most funded through SSBCI, and the federal programs available everywhere.

SSBCI administratorOffice of the Governor of Texas
State programs3
Last reviewedNov 13, 2026

Treasury lists capital access, loan participation and loan guarantee programs. Branded Texas Small Business Credit Initiative (TSBCI).

Texas programs

TexasCapital access

TSBCI CAP

A loan loss reserve program funded by the federal SSBCI. When a participating lender enrolls a small business loan, the lender and borrower each pay a premium into the lender's reserve account and the state matches it, and the lender can recover up to 100% of charged-off principal from the reserve. It covers loans of $5,000 to $5 million to Texas small businesses. Texas has since moved most of its SSBCI allocation out of this program, which now has $4.7 million.

Office of the Governor, Texas Economic Development & Tourism Office, Economic Development Finance Division (Texas Economic Development Bank)
TexasLoan guarantee

TSBCI LGP

An SSBCI-funded program in which the State of Texas guarantees up to 80% of the unpaid principal of eligible small business loans, capped at $4 million per guarantee, made by participating banks, credit unions and CDFIs. It covers loans of $5,000 to $20 million to for-profit Texas small businesses. TSBCI charges no program fees.

Office of the Governor, Texas Economic Development & Tourism Office, Economic Development Finance Division (Texas Economic Development Bank)
TexasLoan participation

TSBCI LPP / CDLP

Texas's largest SSBCI program. Its CDFI Direct Lending Program lends SSBCI funds to certified CDFIs at a fixed 1% rate for up to nine years, matched at least 1:1 with the CDFI's own capital, for relending to Texas small businesses. U.S. Treasury also describes a purchase participation component that buys up to 50% of eligible small business loans from participating lenders.

Office of the Governor, Texas Economic Development & Tourism Office, Economic Development Finance Division (Texas Economic Development Bank)

Federal programs in Texas

Available in every state
FederalLoan guarantee

SBA 7(a)

SBA's primary business loan program: SBA guarantees part of a loan a participating lender makes to an eligible small business that cannot get the credit on reasonable terms elsewhere. Standard 7(a) loans are 7(a) term loans above $350,000 and up to $5,000,000, used for real estate, equipment, working capital, debt refinancing and changes of ownership. Loans are made under SOP 50 10 8.1, effective October 1, 2026.

U.S. Small Business Administration
FederalLoan guarantee

SBA Express

SBA Express is a 7(a) delivery method for loans and revolving lines of credit up to $500,000 that lenders with SBA Express authority approve themselves, using their own forms, analysis and collateral policies. In exchange for this autonomy SBA guarantees at most 50% of the loan. SBA Express loans to veteran-owned businesses pay no upfront guaranty fee.

U.S. Small Business Administration
FederalLoan guarantee

SBA 504

The 504 program provides long-term, fixed-rate financing for major fixed assets such as land, buildings and long-life machinery. A typical project combines a senior loan from a private Third Party Lender (at least 50% of project cost), a junior loan from a Certified Development Company funded by a debenture that SBA guarantees 100% (up to 40%), and at least 10% from the borrower. Projects must create or retain jobs or meet a community development or public policy goal.

U.S. Small Business Administration
FederalMicroloan

SBA Microloan

The Microloan program provides loans of up to $50,000 to small businesses and certain nonprofit childcare centers through SBA-approved intermediaries, which are nonprofit, quasi-governmental or tribal lenders that also provide business training and technical assistance. SBA lends to the intermediaries and funds technical assistance grants; the intermediaries make the credit decisions and set loan terms. The average microloan is about $13,000.

U.S. Small Business Administration
FederalLoan guarantee

USDA B&I

The Business and Industry (B&I) Guaranteed Loan Program guarantees loans that approved lenders make to businesses for projects in rural areas, generally any place outside a city or town of more than 50,000 people and its adjacent urbanized area. USDA Rural Development's Rural Business-Cooperative Service runs it under the OneRD guaranteed loan rule at 7 CFR part 5001. Loans can finance real estate, equipment, permanent working capital, business acquisitions and some debt refinancing, up to $25 million in total B&I loans per borrower.

USDA Rural Development
FederalOther

SSBCI

SSBCI is a federal program, run by the U.S. Department of the Treasury, that funds state, territory, District of Columbia and Tribal government programs supporting private small business lending and investment. Treasury does not lend. Each jurisdiction runs its own mix of capital access, loan participation, loan guarantee, collateral support and equity or venture capital programs under federal rules. Lenders take part by enrolling in the programs each jurisdiction runs.

U.S. Department of the Treasury

What changed in Texas

  • Information notice
    TSBCI CAP· TSBCI LGP

    New simplified TSBCI application process for lenders

    The Governor's office announced a new, simplified application process for financial institutions joining TSBCI through the TSBCI portal and published an updated list of approved participating lenders.

    What to do: Lenders not yet enrolled can apply through the TSBCI portal using the simplified process.

    Read the source

Official sources we watch

Last reviewed Nov 13, 2026. A summary of official sources, linked beside each fact, kept current by Kita each week. Program rules change: confirm against the current source before you rely on a figure. Not legal advice. Spotted something out of date? Email hello@kita.ai.

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