1. (a) A Disaster Recovery Loan may only be made to a Micro-Business that:

   1. (1) is in good standing under the laws of this state; and
   2. (2) did not owe delinquent taxes to a taxing unit of this state before the date of the initial issuance of the Declared Disaster.

2. (b) A Disaster Recovery Loan may not be made to a Micro-Business that:

   1. (1) has total revenue that exceeds the amount for which no franchise tax is due under Tax Code § 171.002(d)(2);
   2. (2) is a franchise;
   3. (3) is a national chain with operations in this state;
   4. (4) is a lobbying firm; or
   5. (5) is a private equity firm or backed by a private equity firm.

Source Note:The provisions of this §201.5 adopted to be effective January 5, 2025, 49 TexReg 10628.