Abbott announces launch of Texas Small Business Credit Initiative

Gov. Greg Abbott has announced the launch of the Texas Small Business Credit Initiative (TSBCI) and has invited all financial institutions in the state to participate. The application period for participation will begin on October 9th and run through December 9th. Loan enrollment is set to commence on January 15, 2024.

In a press release on October 6th, Governor Abbott emphasized the importance of small businesses to the Texas economy, stating, "Small businesses are the very backbone of the mighty Texas economy. Nearly half of all Texans are employed by the more than 3 million small businesses in our great state." He encouraged Texas financial institutions to take part in the Texas Small Business Credit Initiative programs.

The U.S. Department of the Treasury has approved funding for the TSBCI, according to the release. The initiative aims to provide greater access to financing and affordable loans for small businesses in Texas, with the goal of promoting job growth and economic prosperity for all Texas families.

The governor's office is urging small business owners to contact their preferred lender and encourage their participation as a financial institution. Abbott believes that with increased access to financing, small businesses will be able to expand and create more job opportunities for Texans.

This announcement comes after Governor Abbott signed an $18 billion property tax cut for Texas, which includes increases in franchise tax exemptions and appraisal caps. Austin Journal reported in August that the state is home to approximately three million small businesses.

The Texas Small Business Credit Initiative is a significant step towards supporting and fostering innovation, entrepreneurship, and economic growth in the Lone Star State.