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 establishes a Texas Historically Underutilized Business Bond Assistance Revolving Loan Account, which will be funded through appropriations, gifts, and loan repayments. The comptroller is prohibited from contracting with external entities for the management of the program or the account. The bill also mandates annual reporting to the legislature on the program's performance and includes provisions for audits by the state auditor to ensure accountability and effectiveness. The act is set to take effect on September 1, 2025.

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