Claudia Ordaz Perez
On Wednesday, the Texas House of Representatives passed House Bill 3271 by freshman State Representative Claudia Ordaz Perez. The legislation creates two programs under the Office of the Governor that provides a path to capital to sustain and grow sole proprietorships
and businesses with fewer than 20 employees.
“Small businesses are the heart of the Texas economy,” said Rep. Ordaz Perez. “Our smallest businesses were the hardest hit by the pandemic. This bill will provide our small businesses with much needed relief that are struggling to find capital to keep them afloat. I am grateful for the overwhelming support from my colleagues for this legislation.”
According to Ordaz Perez’ office, HB 3721 establishes two programs that will provide access to capital to qualified businesses. The Micro Business Capital Access Program establishes a state revolving loan fund in partnership with Community Development Financial Institutions (CDFI).
CDFIs would issue low interest loans to micro-businesses within the state of Texas that face barriers to accessing capital.
“We welcome an opportunity to serve humble, hardworking small business owners across Texas with this bill,” said Janie Barrera, CEO of LiftFund. “As a CDFI providing over $380 million in capital to businesses across the state since 1994, we know the number one challenge facing our customers is capital. Yet when we invest in undercapitalized small businesses, there is a fourteen-dollar positive economic return to our communities through job creation, commerce, and taxes paid at the local and state level. Now is the time to for a Texas small business investment bill and we look forward to partnering with the state in starting and growing this fund.”
The second program, called Micro-Business Access to Capital, is a reserve account for lending institutions to cover losses arising from a default of a loan made by the lender to micro- businesses.
“Texas Association of Businesses (TAB) strives to continue to make Texas the number one place to do business and is committed to making sure businesses of all sizes have access to economic tools that allow them to operate, recover, and remain open after being impacted by the pandemic,” said Megan Herring Manager of Government Affairs for TAB. “HB 3271 provides small businesses access to capital as they continue to support job growth and provide opportunities in their communities.”
“I am grateful for the overwhelming support from my colleagues and community stakeholders for this legislation,” said Rep. Ordaz Perez. “HB 3271 will help our small businesses who need it most.”
Supporters of HB 3271 include the National Federation of Independent Businesses (NFIB-Texas), the Texas Association of Businesses (TAB), the Texas Restaurant Association, Texas Downtown Association, the South-West Texas Border Small Business Development Center Network, LiftFund, the El Paso Chamber of Commerce, the El Paso Hispanic Chamber of Commerce, and the San Antonio Chamber of Commerce.