Relating to establishing loan programs to assist certain micro-businesses by increasing access to capital; authorizing fees.
Impact
The bill provides a structured framework for supporting businesses with fewer than 20 employees that operate primarily within Texas. It enables the establishment of micro-business disaster recovery loans, which will be made available to qualifying businesses through local financial institutions. This aid is crucial for fostering local entrepreneurship and sustaining economic growth, especially post-disaster scenarios where traditional funding routes may be less accessible. By facilitating these loans, the bill intends to enhance resilience among small businesses during challenging times.
Summary
House Bill 3271 introduces the Micro-Business Disaster Recovery Program aimed at increasing access to capital for micro-businesses, particularly in the wake of disasters. This legislation establishes a dedicated micro-business recovery fund within the Texas general revenue fund, which will be utilized by the state bank to facilitate loans through community development financial institutions. By setting clear definitions related to micro-businesses and disaster situations, the bill aims to streamline support for small enterprises that encounter financial difficulties after declared disasters.
Sentiment
Overall, the sentiment surrounding HB 3271 appears to be positive among legislators and local entrepreneurs. Supporters view the bill as a vital resource for fostering economic recovery and stability in communities disproportionately affected by disasters. While discussions around its impact on local governance and the financial regulations imposed on lending institutions may exist, the general consensus highlights the necessity of bolstering support for micro-businesses, especially given the economic challenges posed by disasters.
Contention
Notable points of contention may arise surrounding the administration and oversight of the funds allocated for this program. Concerns may be raised regarding the criteria for qualifying loans and the potential bureaucratic hurdles that could impede the swift allocation of funds to businesses in need. Discussions may also center on the extent of state involvement in local financial operations and whether the proposed legislation adequately addresses the unique challenges faced by diverse micro-businesses across Texas.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.
Relating to the regulation of money services businesses; creating a criminal offense; creating administrative penalties; authorizing the imposition of a fee.
Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state; authorizing a fee.
Relating to the establishment of the workforce housing capital investment fund program to fund the development of workforce housing in this state; authorizing a fee.
Relating to operation of the Texas small and rural community success fund program administered by the Texas Economic Development Bank as successor to the Texas leverage fund program and to creation of the micro-business disaster recovery loan guarantee program.
Relating to the establishment of the Texas Cyber Command and the transfer to it of certain powers and duties of the Department of Information Resources.