TexasLoan guaranteeFunding: SSBCIActive

Texas Small Business Credit Initiative Loan Guarantee Program (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.

Agency: Office of the Governor, Texas Economic Development & Tourism Office, Economic Development Finance Division (Texas Economic Development Bank)
Last reviewed: Nov 13, 2026

Key terms

Loan size: $5,000 to $20,000,000; gov.texas.gov
Maximum guarantee: Up to 80% of unpaid principal, no higher than $4,000,000; gov.texas.gov
Program fees: TSBCI charges no fees to the borrower or lender; lenders may charge their own origination fees; gov.texas.gov
Interest rate: Set by the lender, but not above the maximum allowed by Texas law or the NCUA interest rate ceiling, whichever is less; gov.texas.gov
SSBCI allocation: $160.5 million (down from up to $354 million planned at launch); home.treasury.gov

Borrower eligibility

The borrower must be a very small business (fewer than 10 employees) or small business (fewer than 500 employees), organized for profit, and domiciled in Texas or with at least 51% of its employees in Texas.gov.texas.gov
Eligible uses are start-up costs, working capital, franchise fees, and equipment, inventory or services used to produce or deliver the business's goods or services, or buying, building, renovating or improving a place of business that is not a passive real estate investment.gov.texas.gov
Goodwill, securities purchases, passive real estate investment and lobbying are not business purposes for TSBCI.gov.texas.gov
Loans to nonprofit borrowers cannot be enrolled.gov.texas.gov

Lender requirements

What a lender must be or do to make these loans.

Banks, credit unions and Community Development Financial Institutions may participate by completing the online application in the TSBCI portal.gov.texas.gov
After its application is approved, the lender must sign a participation agreement prescribed by the Economic Development & Tourism Office before it can use the loan enrollment portal.gov.texas.gov
The borrower and the lender each review and certify or acknowledge TSBCI-specific forms for every enrolled loan.gov.texas.gov
Program funds are available first come, first served.gov.texas.gov

Underwriting requirements

What the credit file has to show.

Interest rate and borrower qualifications are determined by each participating lender.gov.texas.gov

Governing documents

The rules a file is held to, with the version in force.

What changed

Published changes to this program, newest first.

Oct 16, 2024Information notice
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

How to participate

Apply through the TSBCI web portal linked from the program page. After approval, sign the TSBCI participation agreement to get access to the loan enrollment portal, then enroll eligible loans with the TSBCI borrower and lender forms. Approved lenders appear on the published list of participating financial institutions.

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.

For lenders

Run TSBCI LGP on Kita.

Kita underwrites the whole file, configured to your own credit policy and to the programs you run. Your underwriter keeps the decision.

01 · Reads the file

Tax returns, bank statements and financials, as PDFs, scans or photos.

02 · Builds the spreads

Period over period, with debt service coverage computed from the spread.

03 · Checks it against the program

Tests the file against TSBCI LGP requirements and flags what is missing before it reaches review.

04 · Drafts the credit memo

Every figure links to the page it came from, so it can be checked.

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Related programs

All programs →

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

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 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.