Texas 2009 - 81st Regular

Texas Senate Bill SB1602 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	81R6590 KFF-D
2	2	By: Shapleigh S.B. No. 1602
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to creating a microloan guarantee program using funds
8	8	appropriated to the Texas Enterprise Fund.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Section 481.078(c), Government Code, is amended
11	11	to read as follows:
12	12	(c) Except as provided by Subsection (d) and subject to
13	13	Section 481.0781, the fund may be used only for economic
14	14	development, infrastructure development, community development,
15	15	job training programs, and business incentives.
16	16	SECTION 2. Subchapter E, Chapter 481, Government Code, is
17	17	amended by adding Section 481.0781 to read as follows:
18	18	Sec. 481.0781. TEXAS ENTERPRISE FUND MICROLOAN GUARANTEE
19	19	PROGRAM. (a) In this section:
20	20	(1) "Financial institution" has the meaning assigned
21	21	by Section 31.002, Finance Code.
22	22	(2) "Microloan" means a business loan of not more than
23	23	$10,000.
24	24	(3) "Microloan guarantee program" means the Texas
25	25	Enterprise Fund microloan guarantee program established under this
26	26	section.
27	27	(b) At least one percent of the funds appropriated by the
28	28	legislature to the Texas Enterprise Fund must be used to administer
29	29	and fund the microloan guarantee program established under this
30	30	section.
31	31	(c) In accordance with this section, the office shall
32	32	establish and administer the Texas Enterprise Fund microloan
33	33	guarantee program to assist in the creation and expansion of
34	34	businesses and jobs in this state by guaranteeing microloans to
35	35	eligible businesses by financial institutions that participate in
36	36	the program.
37	37	(d) To be eligible to receive a loan guarantee under the
38	38	microloan guarantee program, a business must:
39	39	(1) apply to the office on a form prescribed by the
40	40	office;
41	41	(2) be unable to obtain a loan from a participating
42	42	financial institution without a loan guarantee; and
43	43	(3) meet the eligibility requirements established by
44	44	the office.
45	45	(e) An application for a microloan under this section must
46	46	contain:
47	47	(1) a plan for the applicant's proposed use of
48	48	microloan proceeds, including a description of how the microloan
49	49	proceeds will be used to promote business or job growth; and
50	50	(2) a signed statement from a loan officer of the
51	51	financial institution that states that a loan guarantee is required
52	52	for approval of the loan application.
53	53	(f) The office may charge a reasonable fee for processing an
54	54	application filed under this section.
55	55	(g) The office shall consider the following factors in
56	56	determining whether to approve an application for a microloan
57	57	guarantee:
58	58	(1) the anticipated benefits from granting a microloan
59	59	guarantee, including the potential to promote business or job
60	60	growth;
61	61	(2) the applicant's qualifications;
62	62	(3) the feasibility of the applicant's plan; and
63	63	(4) other repayment sources available to the
64	64	applicant.
65	65	(h) If a recipient of a loan guarantee defaults on a loan
66	66	that is guaranteed under this section and the office is required to
67	67	honor its guarantee, the office may bring suit against the
68	68	defaulting party.
69	69	(i) The office shall adopt rules necessary to implement this
70	70	section, including rules regarding the participation of financial
71	71	institutions in the microloan guarantee program.
72	72	SECTION 3. This Act takes effect September 1, 2009.