Bill Text: TX SB2173 | 2019-2020 | 86th Legislature | Introduced
Bill Title: Relating to establishing a program to assist small businesses by increasing access to capital.
Sponsorship: Partisan Bill (Democrat 1)
Status: (Introduced - Dead) 2019-03-21 - Referred to Business & Commerce [SB2173 Detail]
Download: Texas-2019-SB2173-Introduced.html
| 86R13777 GRM-F | ||
| By: Miles | S.B. No. 2173 | |
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| relating to establishing a program to assist small businesses by | ||
| increasing access to 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 PROGRAM | ||
| Sec. 481.451. DEFINITIONS. In this subchapter: | ||
| (1) "Capital access loan" has the meaning assigned by | ||
| Section 481.401. | ||
| (2) "Community development financial institution" has | ||
| the meaning assigned by 12 U.S.C. Section 4702. | ||
| (3) "Default rate" means the percentage of loans made | ||
| that did not meet the payment terms during a period specified by the | ||
| bank. | ||
| (4) "Program" means the small business capital access | ||
| program established under this subchapter. | ||
| (5) "Small business" has the meaning assigned by | ||
| Section 481.401. | ||
| Sec. 481.452. PROGRAM FUNDING; PURPOSE. (a) The program | ||
| shall be funded by direct appropriation. | ||
| (b) The program shall expand access to capital for small | ||
| businesses to create jobs in this state. | ||
| Sec. 481.453. PROGRAM ADMINISTRATION. 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 have | ||
| difficulty in accessing capital. | ||
| Sec. 481.454. OVERSIGHT. (a) A community development | ||
| financial institution participating in the program shall report | ||
| quarterly 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; | ||
| (3) the default rate on existing loans; and | ||
| (4) any other information the bank requires. | ||
| (b) A community development financial institution | ||
| participating in the program shall prepare a detailed financial | ||
| statement each quarter. | ||
| (c) A community development financial institution shall | ||
| allow the bank to inspect the institution's financial records on | ||
| request. | ||
| Sec. 481.455. PROGRAM REPORT. The bank shall issue an | ||
| annual status report on the program. 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. | ||
| SECTION 2. 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, 2019. | ||
