87R10661 MWC-F
By: Ordaz Perez H.B. No. 3271
A BILL TO BE ENTITLED
AN ACT
relating to establishing a program to assist micro-businesses by
increasing access to 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. MICRO-BUSINESS CAPITAL ACCESS PROGRAM
Sec. 481.451. DEFINITIONS. In this subchapter:
(1) "Capital access loan" has the meaning assigned by
Section 481.401.
(2) "Community development financial institution" has
the meaning assigned by 12 U.S.C. Section 4702.
(3) "Default rate" means the percentage of loans made
that did not meet the payment terms during a period specified by the
bank.
(4) "Micro-business" has the meaning assigned by
Section 481.405(f).
(5) "Program" means the micro-business capital access
program established under this subchapter.
Sec. 481.452. PROGRAM FUNDING; PURPOSE. (a) The program
shall be funded by direct appropriation.
(b) The program shall expand access to capital for
micro-businesses to create jobs in this state.
Sec. 481.453. PROGRAM ADMINISTRATION. The community
development financial institution administering the program shall
provide capital access loans to micro-businesses that face barriers
in accessing capital. The institution administering the program
shall give special emphasis to micro-businesses that have
difficulty in accessing capital.
Sec. 481.454. OVERSIGHT. (a) A community development
financial institution participating in the program shall report
quarterly to the bank:
(1) the names of micro-businesses that have received
capital access loans;
(2) the current balance of all outstanding loans made
under the program;
(3) the default rate on existing loans; and
(4) any other information the bank requires.
(b) A community development financial institution
participating in the program shall prepare a detailed financial
statement each quarter.
(c) A community development financial institution shall
allow the bank to inspect the institution's financial records on
request.
Sec. 481.455. PROGRAM REPORT. The bank shall issue an
annual status report on the program. 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 over micro-businesses and economic development.
SECTION 2. Section 481.405, Government Code, is amended by
amending Subsection (e) and adding Subsection (f) to read as
follows:
(e) To qualify as a capital access loan, a loan must:
(1) be made to a micro-business, small business, or
medium-sized business or to a nonprofit organization;
(2) be used by the business or nonprofit organization
for any project, activity, or enterprise in this state that fosters
economic development; and
(3) meet any other criteria provided by this
subchapter.
(f) In this section, "micro-business" means a corporation,
partnership, sole proprietorship, or other legal entity that:
(1) is domiciled in this state or has at least 51
percent of its employees located in this state;
(2) is formed to make a profit;
(3) is independently owned and operated; and
(4) has not more than 20 employees.
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, 2021.