The bill proposes the establishment of a revolving loan program aimed at assisting historically underutilized businesses (HUBs) in Texas with the purchase of performance and payment bonds required for public work contracts. The comptroller is tasked with creating this program, which will provide interest-free loans to eligible HUBs, defined as businesses operating in the construction sector that have been in business for at least one year and meet specific financial and experience criteria. The bill outlines eligibility requirements, including restrictions on businesses that have defaulted on bonds or filed for bankruptcy, and sets loan amounts based on the number of public work contracts previously completed by the business.

Additionally, the bill includes provisions for the management and administration of the loan program, stipulating that the comptroller cannot contract with external entities for its management. It establishes a dedicated account for the loan program within the general revenue fund, detailing how funds can be sourced and utilized. The comptroller is also required to report annually to the legislature on the program's performance, including the total assistance provided and the number of businesses served. The act is set to take effect on September 1, 2025.

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