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A BILL TO BE ENTITLED
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AN ACT
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relating to establishing a pilot program to assist small business |
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in obtaining capital. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 481, Government Code, is amended by |
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adding Subchapter CC to read as follows: |
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SUBCHAPTER CC. SMALL BUSINESS CAPITAL ACCESS PILOT PROGRAM |
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Sec. 481.451. DEFINITIONS. In this subchapter: |
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(1) "Capital access fund" means the fund described by |
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Section 481.402. |
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(2) "Capital access loan," "loan," and "small |
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business" have the meanings assigned by Section 481.401. |
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(3) "Community development financial institution" has |
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the meaning assigned by 12 U.S.C. Section 4702. |
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(4) "Disadvantaged individual" means a person whose |
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annual income is equal to or less than $37,000. |
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(5) "Program" means the small business capital access |
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pilot program established under this subchapter. |
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(6) "Rural" means a community located in a county with |
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a population of 50,000 or less. |
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Sec. 481.452. REQUEST FOR PROPOSALS. Not later than |
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October 1, 2017, the bank shall issue a request for proposals from |
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community development financial institutions based in this state to |
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administer the program. The bank shall select a community |
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development financial institution to administer the program not |
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later than December 1, 2018. |
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Sec. 481.453. PROGRAM FUNDING; PURPOSE. (a) The program |
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shall be funded by allocating not more than 20 percent of the |
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balance of the capital access fund for the purposes of the program. |
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(b) The program shall expand access to capital for small |
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businesses located in this state. |
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Sec. 481.454. PROGRAM ADMINISTRATION. (a) The community |
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development financial institution administering the program shall |
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provide capital access loans to small businesses that face barriers |
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in accessing capital. The institution administering the program |
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shall give special emphasis to small businesses that are owned by: |
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(1) disadvantaged individuals; |
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(2) minorities; |
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(3) persons who reside in rural areas; |
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(4) veterans; or |
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(5) women. |
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(b) The maximum forgiveness rate is 30 percent for loans |
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less than or equal to $50,000. |
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Sec. 481.455. OVERSIGHT. (a) The community development |
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financial institution administering the program shall report |
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monthly to the bank: |
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(1) the names of businesses that have received capital |
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access loans; |
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(2) the current balance of all outstanding loans made |
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under the program; and |
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(3) any other information the bank requires. |
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(b) The community development financial institution |
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administering the program shall prepare a detailed financial |
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statement each quarter. |
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(c) The community development financial institution shall |
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allow the bank to inspect the institution's financial records on |
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request. |
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Sec. 481.456. PROGRAM REPORT. The bank shall issue an |
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annual status report on the program, including preliminary or final |
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findings concerning the program's effectiveness. The bank shall |
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deliver its report to the governor, the lieutenant governor, the |
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speaker of the house, and the standing committees of the |
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legislature with primary jurisdiction for small business and |
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economic development. |
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Sec. 481.457. EXPIRATION. This subchapter expires |
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September 1, 2020. |
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SECTION 2. Section 481.402, Government Code, is amended by |
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adding Subsection (d) to read as follows: |
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(d) To carry out the purposes of this subchapter, money in |
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the fund may be appropriated for a loan made under Subchapter CC, as |
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provided by Section 481.453. This subsection expires September 1, |
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2020. |
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SECTION 3. This Act takes effect immediately if it receives |
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a vote of two-thirds of all the members elected to each house, as |
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provided by Section 39, Article III, Texas Constitution. If this |
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Act does not receive the vote necessary for immediate effect, this |
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Act takes effect September 1, 2017. |