Texas Small Business Credit Initiative Loan Participation Program (TSBCI LPP), including the CDFI Direct Lending Program (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.
- Last reviewed
Key terms
- CDLP forgiveness
- Source loans may be eligible for forgiveness upon meeting specific program milestones
- gov.texas.gov
- Purchase participation component
- Purchases up to 50% of eligible small business loans originated by participating lenders, targeting loans of $5,000 to $5,000,000 with a $20 million maximum loan
- home.treasury.gov
Borrower eligibility
- CDLP-funded loans must go to very small businesses (fewer than 10 employees) or small businesses (fewer than 500 employees) that are for-profit and domiciled in Texas or have at least 51% of their employees in Texas.gov.texas.gov
- Small business borrowers must use CDLP-funded loans for the eligible business purposes listed for the TSBCI Capital Access and Loan Guarantee programs.gov.texas.gov
- All CDLP loans must comply with SSBCI 2.0 eligibility requirements, TSBCI program guidelines and the CDFI's own underwriting policies.gov.texas.gov
Lender requirements
What a lender must be or do to make these loans.
- CDLP is open to non-depository CDFIs certified by the U.S. Treasury CDFI Fund.gov.texas.gov
- Applicants must show a successful operating history and the financial and organizational capacity to run the program in compliance with TSBCI and SSBCI 2.0 requirements.gov.texas.gov
- The application package includes an underserved-borrower narrative, the planned lending program and use of funds, lending and management experience, projected CDLP loan activity, the two most recent audited financial statements, a board and senior management list, and evidence of the 1:1 matching capital.gov.texas.gov
- CDFIs already enrolled in the TSBCI CAP or LGP do not need to resubmit lending and management documents they previously provided.gov.texas.gov
Underwriting requirements
What the credit file has to show.
- The CDFI underwrites and approves small business loans under its own credit policy, which it submits with the application along with its expected rates, fees, loan sizes, collateral and personal guaranty requirements.gov.texas.gov
Required documents
- CDFI Direct Lending Program (CDLP) Loan ApplicationCDFI application for a CDLP source loanOpen
Governing documents
The rules a file is held to, with the version in force.
How to participate
CDFIs download the CDLP application package from the TSBCI program page and submit the completed application and supporting documents through the secure file transfer requested via TSBCI@gov.texas.gov. Questions go to the Texas Economic Development Bank at (512) 463-8318 or TSBCI@gov.texas.gov.
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.
Run TSBCI LPP / CDLP on Kita.
Kita underwrites the whole file, configured to your own credit policy and to the programs you run. Your underwriter keeps the decision.
Tax returns, bank statements and financials, as PDFs, scans or photos.
Period over period, with debt service coverage computed from the spread.
Tests the file against TSBCI LPP / CDLP requirements and flags what is missing before it reaches review.
Every figure links to the page it came from, so it can be checked.