Texas Senate Bill SB1465

Texas 2021 - 87th Regular

Caption

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.

Impact

The implications of SB1465 are significant for small businesses across the state. It empowers the Texas Economic Development Bank to offer financial assistance through a loan guarantee program aimed at micro-businesses that have suffered due to disasters. This fund will also facilitate loans to economic development corporations for eligible projects, enhancing the ability of local entities to invest in developments that benefit community resilience and growth. Additionally, the Act specifies that funds are held outside the state treasury, providing more flexible financial management for these initiatives.

Summary

SB1465 is legislation that establishes the Texas Small and Rural Community Success Fund and introduces the Micro-business Disaster Recovery Loan Guarantee Program. This bill serves to administer financial support for small and rural communities in Texas, particularly focusing on providing loans through the Texas Economic Development Bank. The new fund will replace the existing Texas leverage fund program and aims at increasing economic development, especially in areas affected by declared disasters. By guaranteeing loans for micro-businesses, the program targets those with fewer than 20 employees that are crucial for local economies.

Sentiment

The sentiment regarding SB1465 is predominantly positive among proponents, who view it as a critical step towards supporting small businesses during times of economic hardship, particularly those impacted by disasters. There is a sense of optimism surrounding the program's potential to support local economic recovery and development. However, there may also be concerns about the adequacy of funding; the effective implementation of this act is contingent upon specific appropriations from the legislature, which may complicate its operational aspects.

Contention

Key points of contention surrounding SB1465 include the reliance on legislative appropriations for the program's funding. Critics may argue about the sustainability and reliability of the fund, especially if the legislature fails to allocate sufficient resources. Additionally, there may be debates regarding the qualifications for businesses to access these loans and the overall administrative efficiency of the Texas Economic Development Bank in managing these funds.