The bill, titled "An Act relating to a disaster recovery loan program for small and micro-businesses," aims to establish a dedicated program to support small and micro-businesses in Texas that face financial challenges following a declared disaster. Key provisions include the creation of a "small- and micro-business recovery fund," which will serve as a dedicated account in the general revenue fund, and the introduction of definitions for "small business" and "micro-business." The bill specifies that loans will be provided to eligible community development financial institutions, which will then offer zero-interest loans to qualifying businesses that have difficulty accessing capital after a disaster.

Additionally, the bill outlines the criteria for loan eligibility, including requirements for businesses to be in good standing and to have suffered economic injury due to the disaster. It mandates that a certain percentage of the total loans provided under the program must be allocated to micro-businesses. The bill also includes provisions for reporting requirements for participating financial institutions and repeals an existing subchapter related to small business disaster recovery loans. Overall, the legislation seeks to enhance access to capital for small and micro-businesses, thereby promoting job creation and economic recovery in the state.

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)