Relating to a disaster recovery loan program for small and micro-businesses.
Impact
The bill amends existing laws to create a dedicated small and micro-business recovery fund within the general revenue fund, which will help streamline efforts to assist affected businesses. By offering zero-interest loans to community development financial institutions (CDFIs), the program is expected to lower barriers to financial support, ensuring that loans provided to qualifying businesses help them recover and create jobs within the state. The amendments are intended to strengthen the state’s economic resilience against the repercussions of disasters.
Summary
House Bill 109 establishes a disaster recovery loan program specifically aimed at small and micro-businesses impacted by disasters. The bill enhances the existing framework within the Texas Government Code by introducing clear definitions and criteria for participation in the program. It defines 'small and micro-businesses' and outlines what constitutes a disaster recovery loan, focusing on helping businesses that face challenges in accessing capital after a disaster declaration. This initiative aims to support economic stability by providing financial assistance to those who need it the most.
Contention
While the bill aims to support small and micro-businesses, there is potential contention about which entities qualify for loans and the disqualification of certain businesses, such as national chains and franchises, from receiving assistance. Some critics may argue that excluding specific types of businesses could limit the overall effectiveness of the recovery efforts. Furthermore, concerns might be raised regarding accountability and transparency in how funds are managed and distributed by the participating CDFIs, which could necessitate further discussion among lawmakers and stakeholders.
Texas Constitutional Statutes Affected
Government Code
Chapter 481. Texas Economic Development And Tourism Office
Relating to small business recovery funds and insurance tax credits for certain investments in those funds; imposing a monetary penalty; authorizing fees.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the creation of a grant matching program for the federal small business innovation research and small business technology transfer programs.
Establishes Student Tuition Recovery Fund in Office of the Secretary of Higher Education to compensate students impacted by failing or fraudulent proprietary institutions.