Texas Micro-Business Disaster Recovery Loan Program

Office of the Texas Governor | Greg Abbott | Press Release

Governor Greg Abbott announced the opening of the Texas Micro-Business Disaster Recovery (MBDR) Loan Program to facilitate loans from Community Development Financial Institutions (CDFIs) to micro-businesses affected by declared local, state, or federal disasters in Texas. Administered under the Governor’s Economic Development and Tourism Office, there is up to $5 million in total available funding through the Texas MBDR Loan Program through August 31, 2025. Applications are open now for eligible CDFIs interested in participating.

“Businesses with less than 20 employees make up a vast majority of all businesses in Texas,” said Governor Abbott. “These micro-businesses are critical drivers of the Texas economy and are often the cornerstones of our communities as they create good-paying jobs for hardworking Texans. They can also be the hardest hit after disaster strikes. The Texas MBDR Loan Program will assist our local businesses in building continued resiliency around declared disasters. Texas’ Community Development Financial Institutions are encouraged to apply to participate in the program now to help prepare for any potential declared disaster. Texas will continue to provide the necessary disaster preparation and recovery resources to businesses and communities across the state.”

In 2021, Governor Abbott signed House Bill 3271 into law to create the Texas MBDR Loan Program. The program will provide 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 local, state, or federal disaster in Texas. 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.

CDFIs are encouraged to apply to participate in order to be prepared before a potential disaster situation. Once a local, state, or federal disaster has been declared, CDFIs may then apply to enroll loans from micro-businesses that meet the eligibility criteria. Micro-businesses should contact their preferred CDFI to encourage their participation in the Texas MBDR Loan Program as a participating lender. A listing of CDFIs can be found at the following webpage by clicking “View the list of Certified CDFIs”: www.cdfifund.gov/programs-training/certification/cdfi.

For more information on the Texas MBDR Loan Program, including eligibility, application details, and other resources, visit: mbdr.gov.texas.gov.

The Governor’s Economic Development and Tourism Office is tasked with marketing and promoting the state of Texas as a premier business location and travel destination, facilitating new jobs and investment through the location, expansion, and retention of national and international investment, and administering state incentive programs for business and community development.