The Brief
Texas has about three million small businesses, employing more than 40% of the state's workforce.
For smaller businesses, with limited financial reserves, natural disasters can create a significant hurdle to keeping employees paid.
A proposed emergency bridge-loan program would offer short term, zero interest loans for small businesses to make payroll.
HARRIS COUNTY, Texas - The Texas Legislature special session will focus, in part, on recovery efforts from the Hill Country floods. Some of the state's small businesses that have been damaged by previous natural disasters are using the opportunity to renew efforts that would offer emergency loan assistance to help payroll, until disaster assistance becomes available, which often takes months.
The effort is being led by Janice Jucker, whose family owns Three Brothers Bakery in Houston. The business has suffered repeated floods and hurricanes, costing hundreds of thousands of dollars in damage. Being able to pay her employees, she says, is a vital step in keeping the business open. After testifying on the matter during the recently completed regular session, she will lobby lawmakers to make the issue a priority while disaster recovery is top of mind.
What they're saying
"This revolving loan fund would get quick cash into the bank accounts of small businesses, so they can employ their employees," says Jucker. "You must pay your employees to have a chance of reopening, after these disasters, and that takes cash."
"Unfortunately, these disasters are becoming relatively commonplace, so we need to make sure small businesses have the tools they need to get back on their feet and employ the community and help rebuild the community," says Kelsey Erickson Streufert of the Texas Restaurant Association, which will lobby on behalf of the effort.
What we know
Florida has a similar bridge-loan program that makes up to $50,000 available in zero-interest loans for payroll use, that can be paid back over two years. A bill, sponsored by Houston State Senator Carol Alvarado, would have mirrored that program, but lawmakers ran out of time before they could vote on it.
What we don't know
The special session agenda does not, currently, include the bridge loan program but Jucker and others say they will lobby lawmakers to get it included in the conversation.
The Source
Three Brothers Bakery, Texas Restaurant Association, FloridaJobs.org, Office of the Texas Governor
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