Texas Military Value Revolving Loan Fund

Created by Senate Bill 652 and signed by Governor Perry during the 78th Legislative session as a provision of the Military Preparedness Act, the $250 million loan fund assists defense communities in accomplishing economic development projects that enhance the military value of their installations. The 79th Legislature amended this legislation to extend the fund to communities positively and negatively impacted by BRAC 2005 or later. The bill provides a low cost source of revenue to eligible communities who meet the application criteria. State funding will be obtained through the sale of up to $250 Million in general obligation bonds.

Defense communities desiring to apply for funds from the Revolving Loan Fund will be required to comply with the rules and to meet the criteria established by the Commission. A defense community in Texas is defined as a political subdivision, including a municipality, county, or special district, that is adjacent to, is near, or encompasses any part of a defense base. Provisions of the statute require repayment of the loan as specified in the contract. The minimum amount of a loan will be $1,000,000 while the maximum amount of a loan will be determined by the availability of funds and the creditworthiness of the applicant. The state may provide up to 100% of the cost of the described project, dependent upon the creditworthiness of the applicant.

In order for communities to request project funds, communities should submit a letter of interest to the office of the TMPC. Once this has been done, communities should develop a Military Value Enhancement Statement (MVES) or a Community Redevelopment Plan (See link below). For additional information regarding the Texas Military Value Revolving Loan Fund or SB 652, please contact Al Casals at (512) 936-0517 or email at acasals@governor.state.tx.us.

The following links contain information and forms necessary for Defense Communities in Texas to apply for the TMVRLF.