AI-assisted research summary: The department may use fund money only for loans and grants under this section, and grant recipients must add matching funds. Loan terms and loan/grant amounts are capped, and the department must report to state leaders on a set schedule.
Sec. 12.0273. LIMITATIONS ON LOANS AND GRANTS FROM TEXAS ECONOMIC DEVELOPMENT FUND. (a) The department may use money in the Texas economic development fund only to make loans and grants in the manner provided by this section for the purposes provided by Section 12.0272(b). (b) The recipient of a grant using money from the fund must provide matching funds in an amount equal to 25 percent of the amount of the grant. (c) The term of a loan made using money from the fund may not exceed 20 years. (d) The department shall administer the fund as a perpetual source of financing for loans and grants under this section. The department shall use payments of principal and interest to make additional loans and grants. Subject to Subsection (f), the department may use any money in the fund to make additional loans and grants. (e) The cumulative amount of grants to any person using money from the fund may not exceed $1 million. (e-1) The maximum aggregate amount of outstanding loans to any one person at any time using money from the fund may not exceed $1 million. (f) The department shall retain in the fund in the state treasury an amount of money equal to at least 25 percent of the amount of money in the fund on January 1, 2017. (g) Not later than December 1 of each even-numbered year, the department shall submit a report on the status of the fund, including loans and grants made using money from the fund, to the governor, lieutenant governor, speaker of the house of representatives, and chairs of the house and senate committees with primary jurisdiction over the department. (h) The department may adopt rules for the repayment of a loan or grant made under this section. Added by Acts 2017, 85th Leg., R.S., Ch. 459 (H.B. 2004), Sec. 2, eff. June 9, 2017. Amended by: Acts 2025, 89th Leg., R.S., Ch. 346 (H.B. 2765), Sec. 3, eff. September 1, 2025.