SB2123 —

AI-generated reading aid from the bill's amendatory text — verify against the official bill.

This bill amends 1 section(s) of the Texas statutes: Section 481.405, Government Code.

• SUBCHAPTER CC. MICRO-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) "Micro-business" has the meaning assigned by Section 481.405(f). (5) "Program" means the micro-business capital access program established under this subchapter. Sec. 481.452. PROGRAM FUNDING; PURPOSE. (a) The program shall be funded by direct appropriation. (b) The program shall expand access to capital for micro-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 micro-businesses that face barriers in accessing capital. The institution administering the program shall give special emphasis to micro-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 micro-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 over micro-businesses and economic development.

  amended

• Section 481.405, Government Code

  micro-business, business, (f) In this section, "micro-business" means a corporation, partnership, sole proprietorship, or other legal entity that: (1) is domiciled in this state or has at least 51 percent of its employees located in this state; (2) is formed to make a profit; (3) is independently owned and operated; and (4) has not more than 20 employees.

  amended