Tex.
Gov't Code 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 (Rates; Computation of Tax)(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.
Source:
Section 489.304 — Micro-business Disaster Recovery Loan Guarantee Program, https://statutes.capitol.texas.gov/Docs/GV/htm/GV.489.htm#489.304 (accessed May 4, 2024).
