Bill Text: TX SB1410 | 2017-2018 | 85th Legislature | Introduced


Bill Title: Relating to establishing a pilot program to assist small business in obtaining capital.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2017-05-02 - Left pending in committee [SB1410 Detail]

Download: Texas-2017-SB1410-Introduced.html
  85R12094 GRM-D
 
  By: Menéndez S.B. No. 1410
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to establishing a pilot program to assist small business
  in obtaining capital.
         BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
         SECTION 1.  Chapter 481, Government Code, is amended by
  adding Subchapter CC to read as follows:
  SUBCHAPTER CC. SMALL BUSINESS CAPITAL ACCESS PILOT PROGRAM
         Sec. 481.451.  DEFINITIONS. In this subchapter:
               (1)  "Capital access fund" means the fund described by
  Section 481.402.
               (2)  "Capital access loan," "loan," and "small
  business" have the meanings assigned by Section 481.401. 
               (3)  "Community development financial institution" has
  the meaning assigned by 12 U.S.C. Section 4702. 
               (4)  "Disadvantaged individual" means a person whose
  annual income is equal to or less than $37,000.
               (5)  "Program" means the small business capital access
  pilot program established under this subchapter.
               (6)  "Rural" means a community located in a county with
  a population of 50,000 or less.
         Sec. 481.452.  REQUEST FOR PROPOSALS. Not later than
  October 1, 2017, the bank shall issue a request for proposals from
  community development financial institutions based in this state to
  administer the program. The bank shall select a community
  development financial institution to administer the program not
  later than December 1, 2018.
         Sec. 481.453.   PROGRAM FUNDING; PURPOSE. (a) The program
  shall be funded by allocating not more than 20 percent of the
  balance of the capital access fund for the purposes of the program.
         (b)  The program shall expand access to capital for small
  businesses located in this state. 
         Sec. 481.454.  PROGRAM ADMINISTRATION. (a) The community
  development financial institution administering the program shall
  provide capital access loans to small businesses that face barriers
  in accessing capital. The institution administering the program
  shall give special emphasis to small businesses that are owned by:
               (1)  disadvantaged individuals; 
               (2)  minorities;
               (3)  persons who reside in rural areas;
               (4)  veterans; or
               (5)  women.
         (b)  The maximum forgiveness rate is 30 percent for loans
  less than or equal to $50,000.
         Sec. 481.455.  OVERSIGHT. (a) The community development
  financial institution administering the program shall report
  monthly to the bank:
               (1)  the names of businesses that have received capital
  access loans;
               (2)  the current balance of all outstanding loans made
  under the program; and 
               (3)  any other information the bank requires. 
         (b)  The community development financial institution
  administering the program shall prepare a detailed financial
  statement each quarter.
         (c)  The community development financial institution shall
  allow the bank to inspect the institution's financial records on
  request.
         Sec. 481.456.  PROGRAM REPORT. The bank shall issue an
  annual status report on the program, including preliminary or final
  findings concerning the program's effectiveness. The bank shall
  deliver its report to the governor, the lieutenant governor, the
  speaker of the house, and the standing committees of the
  legislature with primary jurisdiction for small business and
  economic development.
         Sec. 481.457.  EXPIRATION. This subchapter expires
  September 1, 2020.
         SECTION 2.  Section 481.402, Government Code, is amended by
  adding Subsection (d) to read as follows:
         (d)  To carry out the purposes of this subchapter, money in
  the fund may be appropriated for a loan made under Subchapter CC, as
  provided by Section 481.453. This subsection expires September 1,
  2020.
         SECTION 3.  This Act takes effect immediately if it receives
  a vote of two-thirds of all the members elected to each house, as
  provided by Section 39, Article III, Texas Constitution.  If this
  Act does not receive the vote necessary for immediate effect, this
  Act takes effect September 1, 2017.
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