Relating to the creation of a revolving loan program to fund the purchase by historically underutilized businesses of certain bonds required for public work contracts.

SB 222 creates a state-funded revolving loan program to help historically underutilized businesses (HUBs) in Texas’ construction industry afford performance and payment bonds required for public work contracts. The program, managed by the comptroller, provides interest-free loans of up to $500,000 (based on the business’s prior public contract experience) directly paid to the bond issuer. To qualify, businesses must be HUBs operating in Texas for at least one year, meet financial standards for the contract, and not have defaulted on bonds or filed for bankruptcy within the past 5-7 years. This policy aims to reduce financial barriers for HUBs seeking public contracts by covering upfront bond costs without interest.