S.B. No. 1361 establishes a disaster recovery loan program specifically for small and micro-businesses in Texas. The bill amends various sections of the Government Code to create a dedicated "small- and micro-business recovery fund" and outlines the definitions and criteria for loans under this program. Key definitions are updated to include "small businesses" and "micro-businesses," with specific eligibility requirements for loans, including the need for businesses to be in good standing and to have suffered economic injury due to a disaster. The program aims to expand access to capital for these businesses, allowing them to use loans for payroll costs and other operational expenses.

Additionally, the bill mandates that community development financial institutions participating in the program report quarterly on the status of disaster recovery loans, including the names of businesses that received loans and the default rates. It also specifies that loans must not exceed the prevailing interest rates for similar loans and sets a minimum requirement for the percentage of loans allocated to micro-businesses. The act is set to take effect on September 1, 2025, and repeals an existing subchapter related to small business disaster recovery.

Statutes affected:
Introduced: Government Code 481.451, Government Code 481.452, Government Code 481.453, Government Code 481.454, Government Code 481.455, Government Code 481.457, Government Code 489.107 (Government Code 481, Government Code 489)
Senate Committee Report: Government Code 481.451, Government Code 481.452, Government Code 481.453, Government Code 481.454, Government Code 481.455, Government Code 481.457, Government Code 489.107 (Government Code 481, Government Code 489)
Engrossed: Government Code 481.451, Government Code 481.452, Government Code 481.453, Government Code 481.454, Government Code 481.455, Government Code 481.457, Government Code 489.107 (Government Code 481, Government Code 489)
House Committee Report: Government Code 481.451, Government Code 481.452, Government Code 481.453, Government Code 481.454, Government Code 481.455, Government Code 481.457, Government Code 489.107 (Government Code 481, Government Code 489)