Texas 2025 - 89th Regular

Texas Senate Bill SB1361 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	89R8424 MLH-F
2	2	By: Alvarado S.B. No. 1361
3	3
4	4
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the consolidation of the small business disaster
10	10	recovery loan program and the micro-business disaster recovery loan
11	11	program.
12	12	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
13	13	SECTION 1. The heading to Subchapter CC, Chapter 481,
14	14	Government Code, is amended to read as follows:
15	15	SUBCHAPTER CC. SMALL- AND MICRO-BUSINESS DISASTER RECOVERY PROGRAM
16	16	SECTION 2. Section 481.451, Government Code, is amended by
17	17	amending Subdivisions (3), (4), (6), and (7) and adding Subdivision
18	18	(8) to read as follows:
19	19	(3) "Default rate" means the percentage of small- and
20	20	micro-business disaster recovery loans made that did not meet the
21	21	payment terms during a period specified by the bank.
22	22	(4) "Fund" means the small- and micro-business
23	23	recovery fund established under Section 481.452.
24	24	(6) "Small- and micro-business [Micro-business]
25	25	disaster recovery loan" or "disaster recovery loan" means a loan
26	26	made by a participating community development financial
27	27	institution to small businesses or micro-businesses under the
28	28	program.
29	29	(7) "Program" means the small- and micro-business
30	30	disaster recovery loan program established under this subchapter.
31	31	(8) "Small business" means a corporation,
32	32	partnership, sole proprietorship, or other legal entity that:
33	33	(A) is domiciled in this state or has at least 51
34	34	percent of its employees located in this state;
35	35	(B) is formed to make a profit;
36	36	(C) is independently owned and operated; and
37	37	(D) employs more than 20 and fewer than 100
38	38	full-time employees.
39	39	SECTION 3. The heading to Section 481.452, Government Code,
40	40	is amended to read as follows:
41	41	Sec. 481.452. SMALL- AND MICRO-BUSINESS RECOVERY FUND.
42	42	SECTION 4. Section 481.452(a), Government Code, is amended
43	43	to read as follows:
44	44	(a) The small- and micro-business recovery fund is a
45	45	dedicated account in the general revenue fund.
46	46	SECTION 5. The heading to Section 481.453, Government Code,
47	47	is amended to read as follows:
48	48	Sec. 481.453. POWERS OF BANK IN ADMINISTERING SMALL- AND
49	49	MICRO-BUSINESS RECOVERY FUND.
50	50	SECTION 6. Section 481.454(b), Government Code, is amended
51	51	to read as follows:
52	52	(b) The program shall expand access to capital for
53	53	qualifying small businesses and micro-businesses to create jobs in
54	54	this state and constitutes a capital access program under
55	55	Subchapter BB.
56	56	SECTION 7. Section 481.455, Government Code, is amended to
57	57	read as follows:
58	58	Sec. 481.455. PROGRAM ADMINISTRATION. (a) The bank, under
59	59	the program, shall provide zero interest loans to eligible
60	60	community development financial institutions for purposes of
61	61	making interest-bearing loans to qualifying small businesses and
62	62	micro-businesses that have difficulty in accessing capital
63	63	following a declared disaster.
64	64	(b) A loan made by an eligible community development
65	65	financial institution under the program:
66	66	(1) must be made to a small business or micro-business
67	67	that:
68	68	(A) is in good standing under the laws of this
69	69	state; [and]
70	70	(B) did not owe delinquent taxes to a taxing unit
71	71	of this state before the date of the initial issuance of the
72	72	disaster declaration;
73	73	(C) has suffered physical or economic injury as
74	74	the result of the event leading to the disaster declaration; and
75	75	(D) has paid in full any previous loan received
76	76	under this subchapter;
77	77	(2) may not be made to a micro-business that:
78	78	(A) has total revenue that exceeds the amount for
79	79	which no franchise tax is due under Section 171.002(d)(2), Tax
80	80	Code;
81	81	(B) is a franchise;
82	82	(C) is a national chain with operations in this
83	83	state;
84	84	(D) is a lobbying firm; or
85	85	(E) is a private equity firm or backed by a
86	86	private equity firm; and
87	87	(3) must meet any other criteria provided by this
88	88	subchapter.
89	89	(c) Payments on small- and micro-business disaster recovery
90	90	loans shall be made directly to the lending community development
91	91	financial institutions.
92	92	(d) All income received on a loan made by a community
93	93	development financial institution participating in the program is
94	94	the property of the financial institution. Income received on a
95	95	loan includes the payment of interest by a borrower small business
96	96	or micro-business and the administrative fees assessed by the
97	97	community development financial institution.
98	98	(e) A community development financial institution
99	99	participating in the program shall make payments to the bank on the
100	100	zero interest loans borrowed by the financial institution under the
101	101	program quarterly, and the bank or this state is not responsible or
102	102	liable for any defaults in small- and micro-business disaster
103	103	recovery loans made by the community development financial
104	104	institution.
105	105	SECTION 8. Subchapter CC, Chapter 481, Government Code, is
106	106	amended by adding Section 481.4555 to read as follows:
107	107	Sec. 481.4555. USES OF LOAN. An eligible small business or
108	108	micro-business may use a loan received under this subchapter to pay
109	109	the business's payroll costs, including costs related to the
110	110	continuation of health care benefits for the business's employees.
111	111	SECTION 9. Section 481.457(a), Government Code, is amended
112	112	to read as follows:
113	113	(a) A community development financial institution
114	114	participating in the program shall report quarterly to the bank:
115	115	(1) the names of small businesses and micro-businesses
116	116	that have received a disaster recovery loan;
117	117	(2) the current balance of all outstanding disaster
118	118	recovery loans;
119	119	(3) the default rate on existing disaster recovery
120	120	loans; and
121	121	(4) any other information the bank requires.
122	122	SECTION 10. Section 489.107(c), Government Code, is amended
123	123	to read as follows:
124	124	(c) For the small- and micro-business [small business]
125	125	disaster recovery loan program, the report must include a general
126	126	description of each small business and micro-business for which an
127	127	applicant was awarded a loan from the fund during the preceding
128	128	fiscal year.
129	129	SECTION 11. Subchapter EE, Chapter 481, Government Code, is
130	130	repealed.
131	131	SECTION 12. This Act takes effect September 1, 2025.