Section 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.Tex. Gov't. Code § 489.304
Added by Acts 2021, Texas Acts of the 87th Leg. - Regular Session, ch. 947,Sec. 1, eff. 6/18/2021.