§ 489.304 — MICRO-BUSINESS DISASTER RECOVERY LOAN GUARANTEE PROGRAM.

Texas § 489.304

• Jurisdiction: Texas
• Code GV: Government Code

Text

Sec. 489.304. MICRO-BUSINESS DISASTER RECOVERY LOAN GUARANTEE PROGRAM. (a) The bank shall establish and administer a micro-business disaster recovery loan guarantee program in which money in the micro-business disaster recovery fund is used to guarantee loans made by participating financial institutions to micro-businesses that have suffered economic injury as a result of a declared disaster.
(b) The bank shall determine the eligibility of a financial institution to participate in the program and may set a limit on the number of eligible financial institutions that may participate in the program.
(c) To participate in the program, an eligible financial institution must enter into a participation agreement with the bank that sets out the terms and conditions under which loans made to micro-businesses recovering from a declared disaster will be guaranteed.
(d) To qualify for a loan guarantee under the program, a micro-business:
(1) must:
(A) be in good standing under the laws of this state; and
(B) not owe delinquent taxes to a taxing unit of this state before the date of the initial issuance of the disaster declaration; and
(2) may not:
(A) have total revenue that exceeds the amount for which no franchise tax is due under Section 171.002 (d)(2), Tax Code; or
(B) be a franchise, a national chain with operations in this state, a lobbying firm, or a private equity firm or backed by a private equity firm.
(e) A micro-business that receives a loan guarantee shall apply the loan to working capital or to the purchase, construction, or lease of capital assets damaged, reduced, or lost as a result of the declared disaster.

Legislative History

Added by Acts 2021, 87th Leg., R.S., Ch. 947 (S.B. 1465 ), Sec. 1, eff. June 18, 2021.