(a) The Capital for Texas Program was established effective January 20, 2016, using part of the funds allocated to the Department through the U.S. Department of the Treasury's (Treasury) State Small Business Credit Initiative (SSBCI) program, to provide funding to Community Development Financial Institutions (CDFIs) in support of small business lending in rural communities of this State.
(b) The Department's Allocation Agreement with the Treasury expired on March 31, 2017, while the authority and duty of the Treasury to administer the SSBCI program terminated on September 27, 2017. However, the SSBCI Act, Policy Guidelines, Compliance Standards and Allocation Agreement continue to apply to the first use of funds from the allocation made to the Department.
(c) The SSBCI Act, Policy Guidelines, Compliance Standards and Allocation Agreement do not apply to the recycling of SSBCI funds by the Department, or by a participating venture capital firm on behalf of the Department, after March 31, 2017.
(d) The purpose of these rules is to establish regulations for the Rural Economic Development Capital for Texas (RED C4T) Program to continue the Department's small business lending and investment programs using recycled SSBCI funds generated from SSBCI loan repayments and returns on SSBCI investments received or realized by the Department as a result of loans and investments made under the Capital for Texas and Jobs for Texas (J4T) Programs, as well as other state funding from the Texas Economic Development Fund.

Source Note: The provisions of this §29.20 adopted to be effective December 29, 2020, 45 TexReg 9409