AUSTIN (July 30, 2025) – At a virtual press conference held earlier today, the National Federation of Independent Business here in Texas, the Texas Restaurant Association, and the Texas Association of Business called on state lawmakers to swiftly pass Senate Bill 26, House Bill 109 or similar legislation and funding to expand the state’s Micro-Business Disaster Recovery Loan Program. The initiative has drawn support from statewide groups such as the Texas Retailers Association, Texas Food & Fuel Association and Texas Hotel & Lodging Association—plus dozens of chambers of commerce including those covering Kerrville and San Angelo—reflecting a strong and unified call from across the state to prioritize disaster recovery for small businesses in the ongoing special session.

“Small businesses are the backbone of every Texas community. They not only create jobs, but also they’re the ones handing out sandbags, cooking meals for first responders and helping neighbors pick up the pieces after every disaster,” NFIB State Director Jeff Burdett said. “But without access to working capital, too many of these businesses won’t survive the next storm. We strongly urge the Texas Legislature to pass SB 26 and HB 109 and fully fund this disaster recovery loan program during the special session. The longer we wait, the more businesses and local jobs we risk losing to these recent floods and future disasters.”

The proposed legislation comes in response to recurring natural disasters, including the July 4th flooding in Central and West Texas and the devastation caused by Hurricane Beryl and the derecho in the Houston area last year. With quick assistance, small businesses act as economic engines, fueling recovery efforts and increasing community resilience.

To address these needs, the business coalition supports Senate Bill 26 and House Bill 109, identical bills that strengthen and simplify Texas’ small business disaster recovery infrastructure by:

• Consolidating two disaster loan programs, adding small businesses to the already successful Micro-Business Disaster Recovery Loan Program to improve clarity and enhance government efficiency. Currently, the program is limited to businesses with 20 or fewer employees, and this would extend the cap to 99.
• Clarifying that loans may be used to cover payroll costs, providing a lifeline to help businesses retain employees and maintain operations during the recovery period.
• Building on the current model so that small businesses will repay their loans to participating Community Development Financial Institutions—a structure that protects the State of Texas, replenishes the fund for future disasters and helps small businesses bridge the gap between immediate need and longer-term support like federal SBA assistance or insurance payouts.

Other speakers included Kelsey Erickson Streufert, chief public affairs officer of the Texas Restaurant Association; Glenn Hamer, president & CEO of the Texas Association of Business; and Janice Jucker, co-owner of Three Brothers Bakery, who shared a firsthand account of navigating multiple disasters as a small business operator.

“Small businesses like restaurants are on the frontlines of disaster response, but they need help to drive long-term recovery efforts,” Streufert said. “Nearly 50 business groups have come together to urge the legislature to expand the disaster recovery loan program because we have an opportunity to prevent recent and future natural disasters from becoming an economic disaster for impacted communities. Thanks to bipartisan bills filed during the special session, Texas can show the nation what best-in-class disaster recovery looks like—helping small businesses keep Texans employed so local economies can recover faster.”

“My business would have closed permanently at least three times if it weren’t for the SBA’s disaster assistance,” Jucker said. “Still, it can take weeks or months to receive this help, and it’s not guaranteed as we saw last year when Congress took months to replenish SBA funding after disasters hit North Carolina. We need federal and state tools available to help all small businesses keep their teams on payroll after a disaster strikes.”

“As businesses and communities continue to recover from the devastating floods in Central Texas, it’s critical that local small businesses—which make up the vast majority of businesses across our state—are not overlooked when Texas lawmakers approve disaster relief proposals during the current special session,” Hamer said. “Legislators have an important opportunity to step up by streamlining and accelerating the process for small businesses to access disaster recovery loans, and we applaud Senator Carol Alvarado and Chairwoman Angie Chen Button for their leadership by filing Senate Bill 26 and House Bill 109 to meet the needs of small business owners who are beginning to rebuild.”

“These important measures would expand the successful Micro-Business Disaster Recovery Loan Program, allowing small businesses to access capital that will help safeguard local jobs while eliminating bureaucratic hurdles to recovery and enhancing government efficiency throughout the process. While many businesses still face a difficult road ahead, we are confident that lawmakers will advance meaningful legislation to ease the burdens on all small businesses impacted as they work to build back stronger than ever before.”