The bill would amend Chapter 403 of the Government Code to establish the Small Business Disaster Recovery Loan Program and authorize the Comptroller to make loans to small businesses affected by a natural disaster declared by the Governor. The Comptroller would develop and implement an application process, establish rules, and biennially report to the Governor, Lieutenant Governor, and Legislature.
The bill would create Small Business Disaster Recovery Revolving Fund as a special fund outside the treasury. The bill would authorize the Comptroller to administer the fund; the Texas Treasury Safekeeping Trust Company would hold and invest the fund. The fund would consist of transfers or deposits to the credit of the fund, including money from any source transferred or deposited to the credit of the fund at the Comptroller's discretion as authorized by law; proceeds of any dedicated fee or tax dedicated for deposit to the credit of the fund; and investment earnings and interest. An eligible small business would be authorized to use a loan received under this subchapter to pay payroll costs, including costs related to the continuation of healthcare benefits for the business's employees.
According to the Comptroller, the fiscal impact of the bill to the state cannot be estimated at this time. The Comptroller indicates there would be no administrative costs to the agency to administer the fund.
This legislation would do one or more of the following: create or recreate a dedicated account in the General Revenue Fund, create or recreate a special or trust fund either within or outside of the Treasury, or create a dedicated revenue source. The fund, account, or revenue dedication included in this bill would be subject to funds consolidation review by the current Legislature.
The bill would take effect September 1, 2021.
No significant fiscal implication to units of local government is anticipated.