HB147 Alabama 2015 Session

Summary

Primary Sponsor

Adline ClarkeRepresentative

Democrat

Session

Regular Session 2015

Title

Small business, disaster short-term loan program, administration by Commerce Department and Industrial Development Authority, funds guaranteed by state

Summary

HB147 would create the Alabama Disaster Small Business Bridge Loan Act to provide short-term loans to disaster-damaged small businesses until they can obtain other financing or insurance proceeds.

What This Bill Does

It sets up a disaster loan program to be run by the Department of Commerce and the State Industrial Development Authority. Loans would range from $1,000 to $25,000 and last 90 or 180 days, with a possible extension of up to 180 more days if requested by the lender. The program would be funded by a line of credit up to $25 million, backed by the state's full faith and credit, and repayments would go toward repaying that line of credit. Eligible businesses must be in the disaster area, have existed there for at least one year, employ 2-100 people, have suffered physical damage, and be at least 51% Alabama-owned (or nonprofit corporations controlled by Alabama residents).

Who It Affects

• Small businesses located in the Governor-issued disaster area that meet ownership, size, and damage criteria would be eligible to apply for short-term bridge loans.
• Lenders and other approved financial institutions that provide the line of credit and loan funds would be involved in financing the program and receiving loan repayments.

Key Provisions

• Establishes the Alabama Disaster Small Business Bridge Loan Act to provide short-term bridge loans to disaster-damaged small businesses until they can secure other financing or insurance proceeds.
• Loans of $1,000 to $25,000 with terms of 90 or 180 days (extendable up to 180 days) and restricted use to maintaining or restarting affected businesses.
• Eligibility requirements: located in the disaster area, established there for at least one year before the disaster, 2-100 employees, suffered physical damage, and at least 51% Alabama-owned (or nonprofit controlled by Alabama residents).
• Funding and administration: Department of Commerce and State Industrial Development Authority administer the program; a line of credit up to $25 million is obtained from lenders to fund loans; full faith, credit, and resources of the state pledged as security for repayment; repayments fund the line of credit.
• Area designation and program rules: department designates the affected counties, publishes rules governing loan use, terms, interest rates, fees, and approval processes; program exempt from the Alabama Administrative Procedure Act.
• Funding mechanics: after a disaster proclamation, the department determines need and requests up to $25 million; the Authority selects a lender to provide the line of credit with a maximum three-year indebtedness; repayments are accumulated by the department to fund additional loans and to cover defaults/ interest costs through future legislation.
• Effective date: the act becomes law three months after passage and governor approval.

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

Subjects

Economic Development