SB158 Alabama 2012 Session

Summary

Primary Sponsor

Tammy Irons

Democrat

Co-Sponsors

William “Bill” M. BeasleyQuinton RossBobby D. SingletonJerry L. Fielding

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

This bill would create a Small Business and Job Creation Fund funded by annual transfers from the Alabama Trust Fund to provide startup loans to new or expanding businesses, administered by the Alabama Development Office.

What This Bill Does

It proposes a constitutional amendment to establish the new fund and authorize transfers of $50 million per year for three years from the Alabama Trust Fund. The Alabama Development Office would lend the money to new businesses to create or preserve jobs, with repayments returning to the Trust Fund. Transfers are limited by rules that protect the Trust Fund's balance and consider unemployment levels, and loans are subject to annual employment audits and specific job-based loan caps.

Who It Affects

• New or expanding small businesses and entrepreneurs seeking startup or expansion loans (loan amounts up to $25,000 for 5-10 jobs or up to $100,000 for 11+ jobs).
• The Alabama Trust Fund and state finances (transfers depend on maintaining a minimum fund balance and unemployment conditions).
• The Alabama Development Office (administers loans and conducts annual employment audits).
• The general job market and public employees (jobs created or preserved and ongoing program oversight).

Key Provisions

• Creates the Small Business and Job Creation Fund to be administered by the Alabama Development Office for lending to new enterprises to create or preserve jobs.
• Transfers $50,000,000 from the Alabama Trust Fund to the Small Business and Job Creation Fund each fiscal year for three years.
• Funds loaned are repaid back to the Alabama Trust Fund; total annual loan amounts may not exceed the annual transfer amount.
• Transfers may not occur if doing so would drop the Alabama Trust Fund's total capital below $2,000,000,000 or in years following a year when unemployment is 5% or less, with any shortfall allowed to be carried to a future year.
• Loans have caps: up to $25,000 for 5-10 jobs, and up to $100,000 for 11+ jobs, with interest matched to industry standards unless changed by the Legislature.
• Loans require annual audits by the Alabama Development Office to verify ongoing employment requirements until the loan is repaid.
• The Legislature may enact additional laws to administer and implement loans from the Fund.
• Constitutional amendment requires voter approval in an election, with described ballot language and process.

AI-generated summary using openai/gpt-5-nano on Feb 25, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Constitutional Amendments