HB215 Alabama 2012 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2012

Title

Small Business and Job Creation Fund, established, funded with annual transfer from Alabama Trust Fund for three years, exceptions, administration of fund by Alabama Development Office, const. amend.

Summary

HB215 would amend the Alabama Constitution to create a Small Business and Job Creation Fund, funded by three years of transfers from the Alabama Trust Fund, to provide loans for new businesses and create jobs, administered by the Alabama Development Office.

What This Bill Does

Creates a new Small Business and Job Creation Fund administered by the Alabama Development Office to provide loans to new businesses that will create or preserve jobs. Starting in fiscal year 2012, the state would transfer $50 million per year into the fund for three years, with repayments returned to the Alabama Trust Fund. Transfers can be paused if the Trust Fund's total capital would fall below $2 billion or if the state has unemployment at 5% or less in a prior year. Loans would be limited by size ($25,000 for 5-10 jobs or $100,000 for 11+ jobs), carry industry-standard interest, and be subject to annual audits by the Alabama Development Office until repayment.

Who It Affects

• Small business owners and entrepreneurs in Alabama who are starting new enterprises and could receive loans to cover initial costs (up to $25,000 or $100,000 depending on jobs created).
• The Alabama Development Office, which would administer the fund, issue loans, and conduct annual employment audits of loan recipients.

Key Provisions

• Creates the Small Business and Job Creation Fund to provide lending for new enterprises and to create or preserve jobs, administered by the Alabama Development Office.
• Requires transfers of $50,000,000 per year from the Alabama Trust Fund into the new fund for three fiscal years (starting 2012).
• Transfers may be halted if the Alabama Trust Fund's total capital would fall below $2,000,000,000 or if unemployment is 5% or less in a prior year; any shortfall can be made up in a future year.
• Loans are limited to $25,000 for 5-10 jobs or $100,000 for 11+ jobs; interest is set to industry standard unless changed by law.
• Loans must cover initial costs of creating new businesses; repayments go back to the Alabama Trust Fund.
• Recipients must undergo annual audits by the Alabama Development Office until the loan is repaid to verify employment requirements.
• The Legislature may pass further acts to administer and implement these loans.
• Constitutional amendment requiring voter approval in an election.

AI-generated summary using openai/gpt-5-nano on Feb 24, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments