Texas Government Code 489.304 – Micro-Business Disaster Recovery Loan Guarantee Program
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(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.
Terms Used In Texas Government Code 489.304
- Assets: (1) The property comprising the estate of a deceased person, or (2) the property in a trust account.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
(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 § 171.002(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.