Sec. 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(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.
Added by Acts 2021, 87th Leg., R.S., Ch. 947 (S.B. 1465), Sec. 1, eff. June 18, 2021.