Texas House Bill HB3560

Texas 2015 - 84th Regular

Caption

Relating to transferring a certain percentage of the Texas Enterprise Fund to the capital access fund.

Impact

The amendments proposed by HB 3560 primarily alter Sections of the Government Code, specifically affecting state financial operations. By mandating transfers from the Texas Enterprise Fund, the bill reallocates resources to enhance access to capital for small businesses. This change is expected to stimulate economic growth and development in areas that are often underserved by traditional financial institutions, ensuring these businesses can thrive in competitive markets. This broader access is crucial for fostering local economic development and employment within enterprise zones.

Summary

House Bill 3560 aims to facilitate financial assistance to small businesses by transferring a specified percentage of the Texas Enterprise Fund to the capital access fund. The bill introduces a structured methodology for determining the transfer amounts, setting the baseline at ten percent of the unencumbered balance of the Texas Enterprise Fund. The intent is to bolster the capital access fund, which supports financial institutions, particularly those in designated enterprise zones, by providing a mechanism for funding that encourages lending and investment in these regions.

Contention

While supporters argue that HB 3560 is a positive step towards enhancing financial support for small businesses, there may be discussions around the implications of transferring funds from the Texas Enterprise Fund. There could be concerns about the availability of funds for other state initiatives that the Enterprise Fund might have supported. The balancing act between fostering local entrepreneurship through improved access to capital and ensuring adequate funding for broader state projects could be a point of contention among legislators.