By Chavez                                            H.C.R. No. 309

         75R13887 AMB-D                           

                             HOUSE CONCURRENT RESOLUTION

 1-1           WHEREAS, With more than 17 percent of the Texas population

 1-2     living in poverty, the state cannot achieve its economic potential

 1-3     unless we integrate those living in distressed urban and rural

 1-4     areas into the state's current economic prosperity and growth; and

 1-5           WHEREAS, Helping welfare recipients and low-income

 1-6     individuals move from financial insecurity and dependence on public

 1-7     assistance to self-sufficiency and financial security is a goal of

 1-8     both state and national poverty reduction policies; and

 1-9           WHEREAS, Despite the great potential that exists for people

1-10     to start new businesses and, in the process, rebuild their

1-11     communities, most low-income Texans, without collateral or other

1-12     resources, cannot access the necessary capital to bring creative

1-13     business ideas to fruition; and

1-14           WHEREAS, Microcredit programs, providing loans of as little

1-15     as a few hundred dollars to people in poor communities, have

1-16     repeatedly affirmed, both nationally and internationally, that the

1-17     entrepreneurial spirit is very much alive even in areas of the most

1-18     desolate poverty; simply by giving people a chance to successfully

1-19     create their own opportunities, these programs have transformed

1-20     rows of abandoned buildings into markets full of small shops,

1-21     creating both pride and new employment in many communities; and

1-22           WHEREAS, Microlending represents capitalism at its best,

1-23     providing the necessary infusion of capital to individuals with a

1-24     business idea, while making profitable loans with repayment rates

 2-1     close to 99 percent; the success of microcredit has led many

 2-2     commercial lending institutions to reconsider the potential for

 2-3     profit in serving those with smaller capital needs; and

 2-4           WHEREAS, The President of the United States has acknowledged

 2-5     the merits of microloans by establishing the Presidential Awards

 2-6     for Excellence in Microenterprise Development to recognize

 2-7     outstanding and innovative programs that provide access to credit,

 2-8     technical help, and training in communities where it is needed

 2-9     most; and

2-10           WHEREAS, A total of 150,000 people in the United States and

2-11     over eight million worldwide have benefited from microcredit, and

2-12     it is time that low-income Texans be given a chance to pursue

2-13     dreams of business ownership;  Texas financial institutions have

2-14     the power to offer that chance and to make a profound difference in

2-15     the lives of individuals and in the state's economy while

2-16     developing a new client base and exploring a previously untapped

2-17     market; now, therefore, be it

2-18           RESOLVED, That the 75th Legislature of the State of Texas

2-19     hereby direct the Finance Commission of Texas to encourage all

2-20     financial institutions in Texas to participate in developing

2-21     microloan programs throughout the state to encourage both

2-22     employment and economic development; and, be it further

2-23           RESOLVED, That the secretary of state forward an official

2-24     copy of this resolution to the executive director of the Finance

2-25     Commission of Texas.