Texas House Bill HB2720

Texas 2021 - 87th Regular

Caption

Relating to the authority of a Type A economic development corporation to provide grants and loans to small businesses during a declared state of disaster.

Impact

The implementation of HB2720 will have a significant impact on state laws regarding local economic development authority. By amending Chapter 504 of the Local Government Code, the bill introduces provisions that empower Type A economic development corporations to directly aid small businesses impacted by disasters through financial assistance. This is seen as a crucial step in bolstering local economies during periods of distress by providing the necessary funding to sustain or revive businesses, ultimately aiding community stability.

Summary

House Bill 2720 aims to enhance the capabilities of Type A economic development corporations in Texas by authorizing them to provide grants and loans to small businesses during declared states of disaster. The bill emphasizes the role of economic development corporations in disaster recovery efforts and seeks to streamline support for local businesses that may struggle during such challenging times. It specifically allows Type A corporations to allocate resources to promote the recovery efforts across affected areas.

Contention

While the bill has received support from various economic groups and local governments, it may face contention regarding the regulations around the disbursement of grants and loans. Concerns may arise over the criteria established by these corporations for selecting which businesses can receive aid. There may be debates on ensuring accountability and transparency in how funds are allocated, as well as discussions on whether 10% of sales and use tax revenue is sufficient for addressing the needs of businesses after major disasters.