|(a) The Capital for Texas Program was established effective
January 20, 2016, using part of the funds allocated to the Department
through the U.S. Department of the Treasury's (Treasury) State Small
Business Credit Initiative (SSBCI) program, to provide funding to
Community Development Financial Institutions (CDFIs) in support of
small business lending in rural communities of this State.
(b) The Department's Allocation Agreement with the
Treasury expired on March 31, 2017, while the authority and duty of
the Treasury to administer the SSBCI program terminated on September
27, 2017. However, the SSBCI Act, Policy Guidelines, Compliance Standards
and Allocation Agreement continue to apply to the first use of funds
from the allocation made to the Department.
(c) The SSBCI Act, Policy Guidelines, Compliance Standards
and Allocation Agreement do not apply to the recycling of SSBCI funds
by the Department, or by a participating venture capital firm on behalf
of the Department, after March 31, 2017.
(d) The purpose of these rules is to establish regulations
for the Rural Economic Development Capital for Texas (RED C4T) Program
to continue the Department's small business lending and investment
programs using recycled SSBCI funds generated from SSBCI loan repayments
and returns on SSBCI investments received or realized by the Department
as a result of loans and investments made under the Capital for Texas
and Jobs for Texas (J4T) Programs, as well as other state funding
from the Texas Economic Development Fund.