SB238 Alabama 2012 Session

Updated Feb 25, 2026

Summary

Primary Sponsor: Paul Sanford
Republican
Session: Regular Session 2012
Title: Economic Development, certain developed companies, Alabama Development Office may exempt certain applicant receiving Small Business Innovative Research grant from certain qualifications, Sec. 40-14B-3 am'd
Summary: The bill lets the Alabama Development Office waive certain certification rules for certified capital companies if the applicant recently received a Small Business Innovation Research grant.
What This Bill Does
Currently, to become a certified capital company you must have at least $500,000 in equity capitalization and meet other requirements. The bill allows the Director to waive the equity capitalization requirement and any other requirement if the applicant has a Small Business Innovation Research grant within 12 months of filing. This could make it easier for SBIR grant recipients to qualify, by allowing certification even if they don’t meet the usual rules. The waiver is discretionary and applies to the requirements listed in the relevant subsection.

Who It Affects
SBIR grant recipients seeking certification as a certified capital company, who could qualify even if they don’t meet the usual capitalization and other requirements because a waiver may be granted.
Other applicants for certified capital company status who do not have a recent SBIR grant, who would still need to meet the normal requirements.

Key Provisions
Authorizes the Director to waive the equity capitalization requirement of at least $500,000 and any other requirement to qualify as a certified capital company for applicants who have received a Small Business Innovation Research grant within 12 months of filing.
Waiver authority applies notwithstanding the usual subsections that set certification requirements, allowing certification despite noncompliance with those requirements for SBIR grant recipients.
The SBIR grant must be within 12 months of the date the application is submitted for the waiver to apply.
The act becomes effective on the first day of the third month after passage and governor approval.

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