1. (a) Created by the 78th Legislature and signed into law by Governor Rick Perry, the Texas Military Value Revolving Loan Fund provides a low cost source of revenue to eligible communities who meet the application criteria. The minimum amount of a loan is $1,000,000 while the maximum amount of a loan is determined by the availability of funds and the creditworthiness of the applicant. State funding will be obtained through the sale of general obligation bonds. The State may provide up to 100 percent of the cost of the described project, dependent upon the creditworthiness of the applicant.

2. (b) The Loan is designed to:

   1. (1) assist defense communities in enhancing the military value of a defense facility based on the criteria established in the United States Department of Defense's (DoD) base realignment and closure process;
   2. (2) provide financial assistance to defense communities for job creating or retention economic development projects that minimize the negative effects of a defense base realignment or closure decision that occurred in 2005 or later; or
   3. (3) provide financial assistance to defense communities for infrastructure projects to accommodate new or expanded military missions resulting from a base realignment and closure decision that occurred in 2005 or later.

3. (c) Definitions. The following words and terms, when used in this section, shall have the following meanings unless otherwise indicated.

   1. (1) Applicant--A Defense Community, as defined in paragraph (5) of this subsection, applying for a loan from the Texas Military Value Revolving Loan Fund.
   2. (2) Awardee--The Defense community whose loan application is approved by the office.
   3. (3) Bank--The Texas Economic Development Bank.
   4. (4) Commission--The Texas Military Preparedness Commission.
   5. (5) Defense Community--A political subdivision, including a municipality, county, or special district, that is adjacent to, near, or encompasses any part of a defense base.
   6. (6) Defense Facility--A military base, camp, post, station, yard, center, homeport facility for any ship, or other activity under the jurisdiction of the Department of Defense, including leased space, that is controlled by, or primarily supports, DoD activities.
   7. (7) Director of the Bank--Director of the Texas Economic Development Bank.
   8. (8) Director of the Commission--Director of the Texas Military Preparedness Commission.
   9. (9) Economic Redevelopment Value Statement--A statement that illustrates specific ways funds are to be used to promote economic development in the community to include that information as provided for in §397.0021 of the Local Government Code.
   10. (10) Executive Director--The Executive Director of the Economic Development and Tourism Division of the Office of the Governor (EDT).
   11. (11) Financial Partners--Federal and state agencies, private and public nonprofit foundations, local taxing authorities, and private investors who agree to provide money for projects eligible for funding under this program.
   12. (12) Fund--The Texas Military Value Revolving Loan Fund (TMVRLF).
   13. (13) Governing Board--Members of the Texas Military Preparedness Commission.
   14. (14) Military Value Enhancement Statement--A statement that illustrates specific ways funds are to be used to enhance the military value of the installation to include that information as provided for in §397.002 of the Local Government Code.
   15. (15) Project--The construction, renovation, or acquisition for which a TMVRLF loan is requested.
   16. (16) Project Costs--The Defense Community's total costs for completing the project, including any and all costs of financing and administration assessed by EDT.

Source Note:The provisions of this §4.1 adopted to be effective October 10, 2010, 35 TexReg 9077.