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Bill

HB 109

Relating to a disaster recovery loan program for small and micro-businesses.

89th Legislature, 1st Called Session (2025) Introduced by Trent Ashby and 3 co-sponsors

HB 109 creates a Texas disaster recovery loan program to provide small and micro-businesses with emergency financing following natural disasters.

Filed
#business&commerce--smallbusiness&minoritybusiness(i0051) #disasterpreparedness&relief(i0211) #financial--general(i0365) #loans(s0117) #micro-businesses(s0397) #statefinances--management&control(i0748)
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Bill Summary · HB 109

Legislative bill overview

HB 109 establishes a disaster recovery loan program in Texas specifically designed to provide financial assistance to small and micro-businesses affected by natural disasters. The bill creates a mechanism for eligible businesses to access loans during recovery periods when traditional financing may be unavailable or insufficient. The program aims to help these smaller enterprises rebuild operations and maintain economic viability following declared disasters.

Why is this important

Small and micro-businesses are often the most vulnerable during disaster recovery, lacking the financial reserves and credit access of larger corporations. Without targeted support, many fail permanently after major disasters, eliminating jobs and reducing community economic resilience. A dedicated loan program can accelerate local economic recovery and help preserve the backbone of many Texas communities.

Potential points of contention

  • Program funding source and sustainability – Whether the program is funded through general revenue, bonding, or disaster-specific appropriations, and whether funding levels are adequate for demand
  • Loan terms and interest rates – Debate over whether rates should be subsidized, market-rate, or variable based on business size/need, and repayment flexibility provisions
  • Eligibility criteria and definition disputes – How "small" and "micro" business are defined, which disaster types qualify, what geographic areas are covered, and documentation requirements that could exclude businesses

Compiled from official sources — confirm details with the bill’s official record.

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