The bill, introduced by Senator Alvarado, establishes a disaster recovery loan program specifically for small and micro-businesses in Texas. It 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 provide zero-interest loans to community development financial institutions, which will then lend to qualifying businesses that face challenges in accessing capital after a disaster.

Additionally, the bill mandates that participating financial institutions report quarterly on the status of loans, including the names of businesses receiving loans and the default rates. It also specifies that loans can be used for payroll costs, including health care benefits for employees. The legislation repeals an existing subchapter related to small business loans, streamlining the process under the new program. The act is set to take effect 91 days after the legislative session concludes.

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)