Texas 2021 - 87th Regular

Texas Senate Bill SB2123

Caption

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

Impact

The bill mandates that the program will be administered by community development financial institutions, which will provide capital access loans specifically aimed at micro-businesses facing challenges in obtaining financial resources. With funding allocated directly via state appropriations, the program's goal is to further stimulate economic activity in Texas by benefiting small-scale enterprises that contribute to local economies. Each participating institution is required to report quarterly on its loan activities, ensuring transparency and oversight of the program's effectiveness.

Summary

SB2123 establishes a Micro-Business Capital Access Program aimed at enhancing capital access for micro-businesses within Texas. This bill defines a micro-business as a company with no more than 20 employees and a focus on profit, emphasizing the importance of providing financial support to small and local businesses. The initiative is designed to create jobs by facilitating easier access to capital for these enterprises, which often encounter significant barriers in securing funding from traditional lenders.

Contention

Despite the positive intention behind SB2123, there may still be concerns regarding the implementation and effectiveness of such a program. Critics might argue about the sufficiency of funding or the selection criteria for micro-businesses to access these loans. Furthermore, there could be debates on whether this approach adequately addresses the underlying issues faced by micro-businesses, such as inadequate financial literacy or structural disparities in accessing capital markets.

Companion Bills

TX HB3271

Same As Relating to establishing loan programs to assist certain micro-businesses by increasing access to capital; authorizing fees.

Previously Filed As

TX HB1515

Relating to the continuation and functions of and certain programs subject to rules adopted by the Texas Economic Development and Tourism Office.

TX SB28

Relating to financial assistance provided and programs administered by the Texas Water Development Board.

TX HB10

Relating to financial assistance provided and programs administered by the Texas Water Development Board.

TX HB4418

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.

TX SB949

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.

TX HB2483

Relating to financial assistance provided and programs administered by the Texas Water Development Board.

TX SB837

Relating to financial assistance provided and programs administered by the Texas Water Development Board.

TX HB3874

Relating to the establishment of a grocery access investment fund program.

TX HB2509

Relating to the establishment of a grocery access investment fund program.

TX HB3628

Relating to establishing a process to inform certain housing assistance applicants of their potential eligibility for certain public assistance programs.

Similar Bills

No similar bills found.