// A LETTER FROM OUR CEO

Chris Valka, Chief Executive Officer

When most of us think of the Prison Entrepreneurship Program, we think of the business plan competition at Estes, Bell, and now, Lychner. As you have heard me discuss previously, PEP is operating a new program utilizing the tablet and peer facilitators. Last month, we held our first graduation at the Estelle Unit. Sixteen men graduated, with roughly 120 men celebrating alongside them, and six volunteers judging their final pitches.

Thanks to the generosity of the volunteers, the men enjoyed a Domino’s pizza feast. There was no family, no music and no dancing, but it was indeed a celebration. It was hot and the fans were loud, but the men seemed unfazed. This is the world they know. At one point, I sat in the back of the room and watched a round table of 10 men circled fist to fist, heads bowed in prayer – for at least 2-3 minutes.

It turns out you can pray in Hell.

I found myself teary-eyed thinking about the impact that choices made decades ago can have on you. Surely these are not the same men they were when they made the choice that warranted such a punishment.

I sat down with the men after they completed their prayer and asked how long it had been since they’d had Domino’s pizza. I listened as they answered: 8 years, 22 years, 31 years.

Not long ago, I heard one of our alumni say that PEP is like a myth on the inside. You hear about it, but it feels elusive. Many of us have grown accustomed to seeing our participants happy, dancing, and cheering, but as I travel from prison to prison, I begin to see how crazy this is. For the men at Estelle, Wainwright and others, how could you possibly imagine such joy in prison? A myth seems like a fitting description. Yet we know it exists and can exist for so many more.

Last month I wrote about using “entrepreneurship” as a verb more than a noun. What the program teaches is a way of thinking; however, PEP is more than that – it is like a light in the darkness, a glimmer of hope that comes in the form of Domino’s pizza for the first time in 31 years and causes heads to be bowed down in gratitude.

At the board meeting last week, PEP adopted a new vision statement which reads:

OUR VISION

“Through experienced partnering with the nation’s correction agencies, PEP transforms broken lives, prepares participants for successful reentry, significantly reduces recidivism, and contributes to the greater common social good.”

If PEP is successful, this is our vision. It is what our community looks like if we fulfill our mission to transform lives, restore families and rebuild communities.

However, there is also an inherent question in this vision: how do you measure transformation? Is it successful reentry? Is it the reduction of recidivism rates? (This is, after all, how corrections agencies measure success.) Isn’t it also a greater common good?

My dominant thought is that transformation is defined by belonging, which is measured by the ability and quality of a contribution to the people to whom you choose to belong. For some it is a family, while for others it is a brotherhood.

We all need people, and to belong to those people means that we recognize our contribution to them, even if it is simply your attentive presence.

That is what I saw at the graduation ceremony at Estelle: I saw people who are beginning to feel like they belong to each other. I would guess that for some, it may be the first time they didn’t feel completely on their own. This is not just a measure of success; it is the light that transforms the darkness into hope.

Chris Valka
Chief Executive Officer

// PEP IN THE NATIONAL CONVERSATION

On September 1, 2026, Federal Reserve Governor Michael S. Barr spoke at the Second-Chance Lending Forum in Washington, D.C. His remarks, “Unlocking Opportunities for Workers and Entrepreneurs with a Criminal Record,” focused on financial inclusion and entrepreneurship for people with a record, and he named PEP as a model that works.

“For example, the community development financial institution (CDFI) operating as a lending subsidiary of Texas’s Prison Entrepreneurship Program (PEP) was established to provide business loans to entrepreneurs with a record. PEP graduates have launched more than 500 businesses, some generating annual revenues of over $1 million. It’s one example, but it demonstrates that this approach works when lending is paired with structured, accessible support.”

MICHAEL S. BARR
Member, Board of Governors of the Federal Reserve System

businesses launched by PEP graduates, some with over $1 million in annual revenue

more in estimated annual earnings for formerly incarcerated people who start a business, versus traditional employment

U.S. small business owners have a criminal record, nearly 4% of all small business owners

Governor Barr also pointed to research finding that entrepreneurship may reduce five-year recidivism relative to traditional employment, and noted that lending “is most effective when paired with the training and networks that help a business succeed.”

Figures above are from Governor Barr’s September 1, 2026 remarks and the research cited in them.

// WINGS OF IMPACT

Have you ever noticed volunteers with pinned PEP Wings? Each color represents a volunteer hour milestone, from white all the way to gold. Now we have a new color, blue, to recognize our monthly donors.

Did you know that 100% of our staff are monthly donors? Or that 28% of all individual donors are alumni of the program? PEP has to raise $400,000 each month to operate, and we receive no public funding.

Outside Event · Houston, TX

In conjunction with eSchool, executive volunteers are invited to a monthly networking event with our participants in Houston and North Texas. The event aims to connect you with eSchool participants and support them in developing their vision, creating resumes, leveraging LinkedIn, etc.

Register →

Inside Event · Lychner Fall 2026

The final twelve teams will pitch their business plans for you to judge, scoring them based on specific criteria to decide which business stands out as the most viable. The day runs 9:00 AM to 4:00 PM and closes with the graduation ceremony.

Register →

Outside Event · Houston, TX

Provide quality feedback on participants’ business models that will encourage participants to improve and continually develop ideas; to serve as a business coach to further develop business ideas; Networking with participants and other attendees.

Register →

Outside Event · Richardson, TX

Provide quality feedback on participants’ business models that will encourage participants to improve and continually develop ideas; to serve as a business coach to further develop business ideas; Networking with participants and other attendees.

Register →

Round 2: Estes Fall 2026 Business Plan Competition

Evaluate and score the second round of business pitches on four key elements: Demand creation; Ability to fulfill demand; Marketing; and Presentation. Your input and feedback will help decide the final teams competing at the Business Plan Competition Event.

Register →

Outside Event · Richardson, TX

In conjunction with eSchool, executive volunteers are invited to a monthly networking event with our participants in Houston and North Texas. The event aims to connect you with eSchool participants and support them in developing their vision, creating resumes, leveraging LinkedIn, etc.

Register →

Virtual Event (Zoom)

Work 1×1 with a team by doing market research, answering questions, and editing business plans.

Register →

Virtual Event (Zoom)

Take a deeper dive with the business teams on Vision & Objective, Product/Service, and Marketing.

Register →

Virtual Event (Zoom)

Take a deeper dive with the business teams on financial budgeting and making the Ask.

Register →

// PARTICIPANT’S VOICE

By Jesus S., CLSM’26

PSALM 143:10

“Teach me to do your will, for you are my God!
Let your good Spirit lead me on level ground”

Our leadership book, True North, provides many examples of the many kinds of people who influence our journey towards effective and authentic leadership. Specifically, it is our mothers the greatest impact on our leadership abilities because they teach and show us discipline, purpose, and passion.

From a young age mothers are most often the main person in our life. We are cared for, watched, and loved by our mom. She wants to ensure our survival and that desire extends to our ability to provide for ourselves. This is why our moms admonishes us when we exhibit behavior that jeopardizes our character growth. By telling us what is appropriate to do in our life, our mother sets a strong foundation to build us into a man that greatly contributes to our society.

She not only tells us what is right, she displays the importance of responsibility. Our mother is tasked with not only being the main caretaker of the household, but sometimes being the breadwinner of the family. As a naïve child, we must take for granted how burdensome this must be. However, our mom’s commitment to her liabilities creates action that we benefit from and eventually use as a guide for our own behavior.

What enables our mother to maintain her focus and composure is that she has a complete understanding of her “why”. For our mom, some auxiliary motivations can include societal expectations or cultural obligations, but a truly dedicated mother is driven by her self-belief in us as her child to change the world. She understands that by being her best, we are given the best opportunity to live a transcendent life.

Our mom’s purpose inspires her to foster a deep and meaningful reconnection with us so we can make significant impacts on our whole environment. The influence we have on the world and people around us can only be lasting and sustainable if we have the sympathy, empathy, and love vastly tied to our mind, body, and soul. If we do not understand and feel this within ourselves, all of our actions and purpose will evaporate as the intensity of life’s challenges puts pressure on us.

For this reason it is our mom’s desire that is the biggest, strongest, and most important influence on our skills and style as a leader. She portrays tender love and care so that the parts of us that are rough around the edges are softened and smoothed out. By doing this, our leadership is maximized in effectiveness because those we lead can see with clarity the passion instilled in us. We were given love by our mom and we can now lead with love.

Let us take a moment to realize and recognize that “mom” is a title that can be applied not just to the biological female from whom we were birthed. Our “mom” can be our grandmother, sister, aunt, or anyone else who was a reliable guardian who showed the traits of what a true mother should look like. It can even be our father, who has taken it upon himself to play both roles. What makes someone a true “mother” is not who God made them biologically, but what God blessed with the fortitude to rear us in a significant way.

Appreciating this concept of motherhood unveils our true potential. We should consider the implications of the fact that “mother” is a role untethered from biology. A mom is the individual who obligates themselves with nurturing us on different aspects to awaken our dedication to life’s journey. Approaching the idea of a mom in this manner makes it clear that a mother is the purest symbol of leadership.

Our mom has shown us how to be the best in life through her discipline, purpose, and passion for us. This is why she deserves all of the love and gifts God can bless her with. If we told her this, like any great leader would, she would tell us the truth. Our mother would smile and say,

Jesus S.
CLSM’26