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 | |
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| 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. | ||
