85R12094 GRM-D
By: Johnson of Dallas H.B. No. 4195
A BILL TO BE ENTITLED
AN ACT
relating to establishing a pilot program to assist small business
in obtaining capital.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Chapter 481, Government Code, is amended by
adding Subchapter CC to read as follows:
SUBCHAPTER CC. SMALL BUSINESS CAPITAL ACCESS PILOT PROGRAM
Sec. 481.451. DEFINITIONS. In this subchapter:
(1) "Capital access fund" means the fund described by
Section 481.402.
(2) "Capital access loan," "loan," and "small
business" have the meanings assigned by Section 481.401.
(3) "Community development financial institution" has
the meaning assigned by 12 U.S.C. Section 4702.
(4) "Disadvantaged individual" means a person whose
annual income is equal to or less than $37,000.
(5) "Program" means the small business capital access
pilot program established under this subchapter.
(6) "Rural" means a community located in a county with
a population of 50,000 or less.
Sec. 481.452. REQUEST FOR PROPOSALS. Not later than
October 1, 2017, the bank shall issue a request for proposals from
community development financial institutions based in this state to
administer the program. The bank shall select a community
development financial institution to administer the program not
later than December 1, 2018.
Sec. 481.453. PROGRAM FUNDING; PURPOSE. (a) The program
shall be funded by allocating not more than 20 percent of the
balance of the capital access fund for the purposes of the program.
(b) The program shall expand access to capital for small
businesses located in this state.
Sec. 481.454. PROGRAM ADMINISTRATION. (a) The community
development financial institution administering the program shall
provide capital access loans to small businesses that face barriers
in accessing capital. The institution administering the program
shall give special emphasis to small businesses that are owned by:
(1) disadvantaged individuals;
(2) minorities;
(3) persons who reside in rural areas;
(4) veterans; or
(5) women.
(b) The maximum forgiveness rate is 30 percent for loans
less than or equal to $50,000.
Sec. 481.455. OVERSIGHT. (a) The community development
financial institution administering the program shall report
monthly to the bank:
(1) the names of businesses that have received capital
access loans;
(2) the current balance of all outstanding loans made
under the program; and
(3) any other information the bank requires.
(b) The community development financial institution
administering the program shall prepare a detailed financial
statement each quarter.
(c) The community development financial institution shall
allow the bank to inspect the institution's financial records on
request.
Sec. 481.456. PROGRAM REPORT. The bank shall issue an
annual status report on the program, including preliminary or final
findings concerning the program's effectiveness. The bank shall
deliver its report to the governor, the lieutenant governor, the
speaker of the house, and the standing committees of the
legislature with primary jurisdiction for small business and
economic development.
Sec. 481.457. EXPIRATION. This subchapter expires
September 1, 2020.
SECTION 2. Section 481.402, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) To carry out the purposes of this subchapter, money in
the fund may be appropriated for a loan made under Subchapter CC, as
provided by Section 481.453. This subsection expires September 1,
2020.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2017.