Texas Senate Bill SB2173

Texas 2019 - 86th Regular

Caption

Relating to establishing a program to assist small businesses by increasing access to capital.

Impact

The impact of SB2173 is expected to primarily be felt in the small business sector, where access to capital is a significant concern. By facilitating loans to small businesses, particularly those considered high-risk or underserved by conventional banks, the program aims to enhance their ability to thrive and expand. This could lead to increased job creation and an overall boost in the state’s economic landscape, as more businesses gain the financial backing they need to operate effectively.

Summary

SB2173 introduces the Small Business Capital Access Program in Texas, aimed at increasing access to capital for small businesses. The program is designed to alleviate barriers that small businesses face in securing financial resources, with an emphasis on those that struggle to obtain funding from traditional sources. By providing capital access loans through community development financial institutions, the legislation seeks to support job creation and economic growth across the state.

Contention

Notable points of contention regarding SB2173 may arise from concerns about the administration and oversight of the program. Critics might question how effectively community development financial institutions can manage these loans and whether sufficient accountability measures are in place. Furthermore, discussions surrounding funding appropriations and the program's long-term sustainability could also emerge as significant issues as lawmakers evaluate the impact of this legislation.