HB126 Alabama 2014 Session

Summary

Primary Sponsor

Joe Hubbard

Democrat

Session

Regular Session 2014

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

HB126 would amend the Alabama Constitution to create the Small Business and Job Creation Fund, funded by annual transfers from the Alabama Trust Fund for three years, to make startup loans for new businesses administered by the Department of Commerce.

What This Bill Does

The bill establishes a state fund to provide loans for new businesses to create or preserve jobs, with the Department of Commerce running the program. It would transfer $50 million per year for three years from the Alabama Trust Fund to this fund, and loans repaid would go back into the Trust Fund. Loans have specific caps and must be used for initial startup costs, with interest set at industry standard unless changed by future legislation; annual audits would verify job maintenance until the loan is repaid.

Who It Affects

• Entrepreneurs and small businesses planning to start or expand in Alabama, who could receive startup loans with caps based on the number of jobs created.
• The Alabama Trust Fund, Department of Commerce, and lawmakers, who would manage transfers, administer loans, and audit compliance, subject to fund-capital and unemployment conditions.

Key Provisions

• Creates the Small Business and Job Creation Fund, administered by the Department of Commerce, to provide statewide startup loans for new businesses aimed at creating or preserving jobs.
• For fiscal years 2014 through 2017, transfers $50,000,000 per year from the Alabama Trust Fund to the Small Business and Job Creation Fund; loans repaid go back to the Alabama Trust Fund.
• Transfers may not occur if ending fund capital would drop below $2,000,000,000 or in any year following a year with unemployment at or below 5% as determined by the Alabama Department of Labor.
• The total amount of loans in a given year may not exceed the annual transfer amount to the fund.
• Loans are limited to $25,000 for businesses creating 5–10 jobs and $100,000 for businesses creating 11 or more jobs; interest must follow industry standards unless changed by future legislation.
• Loans must be used for initial costs of creating new business entities and require annual audits by the Department of Commerce to verify ongoing employment requirements until repayment.
• The Legislature may provide for the administration and implementation of loans from the fund by further act.
• The proposed amendment requires voter approval in a statewide election prior to taking effect.

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