Bill > SB222

This bill creates a new revolving loan program administered by the Texas Comptroller to help historically underutilized businesses (HUBs) purchase performance and payment bonds required for public work contracts. The program allows eligible HUBs in the construction or building trade to receive interest-free loans to cover bond costs, with loan amounts ranging from $100,000 to $500,000 depending on the business's contracting history. To qualify, businesses must have been operating for at least one year, have their principal place of business in Texas, and demonstrate the ability to meet contract requirements. Businesses are ineligible for loans if they have defaulted on previous bonds or filed for bankruptcy within the past five to seven years. The program includes restrictions on subcontracting, with prime contractors limited to subcontracting no more than 75% of a contract. Loan proceeds will be paid directly to the surety company, and if a business defaults, the Comptroller and Attorney General can pursue legal remedies to recover the loan. The bill establishes a dedicated revolving loan account in the general revenue fund, allows the Comptroller to accept gifts and grants, and requires annual reporting to the legislature and biennial audits to evaluate the program's performance. The program is set to take effect on September 1, 2025.

Business and Industry

https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB222