85R12094 GRM-D     By: Johnson of Dallas H.B. No. 4195       A BILL TO BE ENTITLED   AN ACT   relating to establishing a pilot program to assist small business   in obtaining capital.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 481, Government Code, is amended by   adding Subchapter CC to read as follows:   SUBCHAPTER CC. SMALL BUSINESS CAPITAL ACCESS PILOT PROGRAM          Sec. 481.451.  DEFINITIONS. In this subchapter:                (1)  "Capital access fund" means the fund described by   Section 481.402.                (2)  "Capital access loan," "loan," and "small   business" have the meanings assigned by Section 481.401.                 (3)  "Community development financial institution" has   the meaning assigned by 12 U.S.C. Section 4702.                 (4)  "Disadvantaged individual" means a person whose   annual income is equal to or less than $37,000.                (5)  "Program" means the small business capital access   pilot program established under this subchapter.                (6)  "Rural" means a community located in a county with   a population of 50,000 or less.          Sec. 481.452.  REQUEST FOR PROPOSALS. Not later than   October 1, 2017, the bank shall issue a request for proposals from   community development financial institutions based in this state to   administer the program. The bank shall select a community   development financial institution to administer the program not   later than December 1, 2018.          Sec. 481.453.   PROGRAM FUNDING; PURPOSE. (a) The program   shall be funded by allocating not more than 20 percent of the   balance of the capital access fund for the purposes of the program.          (b)  The program shall expand access to capital for small   businesses located in this state.           Sec. 481.454.  PROGRAM ADMINISTRATION. (a) The community   development financial institution administering the program shall   provide capital access loans to small businesses that face barriers   in accessing capital. The institution administering the program   shall give special emphasis to small businesses that are owned by:                (1)  disadvantaged individuals;                 (2)  minorities;                (3)  persons who reside in rural areas;                (4)  veterans; or                (5)  women.          (b)  The maximum forgiveness rate is 30 percent for loans   less than or equal to $50,000.          Sec. 481.455.  OVERSIGHT. (a) The community development   financial institution administering the program shall report   monthly to the bank:                (1)  the names of businesses that have received capital   access loans;                (2)  the current balance of all outstanding loans made   under the program; and                 (3)  any other information the bank requires.           (b)  The community development financial institution   administering the program shall prepare a detailed financial   statement each quarter.          (c)  The community development financial institution shall   allow the bank to inspect the institution's financial records on   request.          Sec. 481.456.  PROGRAM REPORT. The bank shall issue an   annual status report on the program, including preliminary or final   findings concerning the program's effectiveness. 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 for small business and   economic development.          Sec. 481.457.  EXPIRATION. This subchapter expires   September 1, 2020.          SECTION 2.  Section 481.402, Government Code, is amended by   adding Subsection (d) to read as follows:          (d)  To carry out the purposes of this subchapter, money in   the fund may be appropriated for a loan made under Subchapter CC, as   provided by Section 481.453. This subsection expires September 1,   2020.          SECTION 3.  This Act takes effect immediately if it receives   a vote of two-thirds of all the members elected to each house, as   provided by Section 39, Article III, Texas Constitution.  If this   Act does not receive the vote necessary for immediate effect, this   Act takes effect September 1, 2017.