TX SB2875

Creates the Texas Small Farm Recovery Microloan Program (TSFRMP) to provide low-interest loans to small farms in Texas with annual revenue not exceeding $500,000 that are experiencing economic hardship from economic downturns, natural disasters, or other qualifying circumstances

Loan amounts range from $5,000 to $50,000 with interest rates capped at 2% fixed annually, repayment periods up to five years, and an optional grace period of 6-12 months; loans may be canceled if borrowers demonstrate inability to repay due to unforeseen hardship

Eligible applicants must be owners or principal operators of Texas small farms, demonstrate financial hardship, engage in agricultural activities such as crop production or livestock farming, and submit a viable business plan

Loan funds may be used for seeds, fertilizers, livestock feed, equipment repairs or upgrades, labor costs, disaster recovery efforts, and marketing/distribution expansion

The Texas Department of Agriculture will administer the program in coordination with financial institutions and nonprofit agricultural organizations, review applications within 30-60 days, and provide technical support and financial literacy training to participants