The bill, H.B. No. 109, 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," and the bill specifies that loans must be made to eligible entities that have suffered economic or physical injury due to a disaster. The program aims to expand access to capital for these businesses, allowing them to use the funds 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 includes provisions to ensure that a minimum percentage of loans are directed to micro-businesses and sets criteria for loan eligibility, such as not exceeding certain revenue thresholds and being in good standing with state laws. The bill repeals an existing subchapter related to small business loans, streamlining the legal framework for disaster recovery assistance. 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)