HB473 Alabama 2021 Session

Summary

Primary Sponsor

Danny GarrettRepresentative

Republican

Session

Regular Session 2021

Title

Commerce, Alabama Rural and Agribusiness Jobs Act

Summary

HB473 creates a state-backed program to fund rural, agribusiness, and opportunity zone jobs by certifying growth funds that use SSBCI dollars and private capital to invest in targeted growth businesses.

What This Bill Does

The act establishes the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act to certify growth funds that will invest in growth businesses in designated rural and growth zones using federal SSBCI funds plus private matching capital. It sets caps on how much investment authority ($15 million per fund) and SSBCI loans ($7.5 million per fund) can be issued, with a overall state limit of $50 million in investment authority and $25 million in SSBCI loans. Growth funds must meet specific investment and reporting requirements (including job creation targets, agribusiness and minority-owned investment quotas, and a private capital match) and can face penalties or be required to exit if they fail to comply. The plan includes an exit process after seven years, ongoing reporting, and oversight by a designated Alabama department, with the program dependent on federal guidance from the Treasury.

Who It Affects

• Growth funds applying for certification and receiving investment authority and SSBCI loans, including their compliance, reporting, and funding conditions.
• Growth businesses located in growth zones (especially agribusinesses and minority-owned firms) that receive investments and must meet job creation/retention targets and provide payroll and performance data.

Key Provisions

• Certification process and funding caps: the department certifies growth funds, each eligible for up to $15 million in investment authority and up to $7.5 million in SSBCI loans, with a total state limit of $50 million in investment authority and $25 million in SSBCI loans across approved funds.
• Investment structure and requirements: each growth investment must be split 50/50 between SSBCI loan proceeds and growth fund matching capital; funds must invest 100% of authority within 12 months (with specified minimums for agribusiness and minority-owned investments) and meet job creation and growth goals over time.
• Penalties and compliance: if a fund fails to meet investment thresholds or timely investments (and related criteria), management fees can be forfeited, SSBCI loan terms can be accelerated, and other penalties apply; there is a 90-day cure period to fix violations.
• Exit and distributions: after seven years, the fund may exit the program; distributions follow a priority order (principal/interest on matching capital, then management fees, then SSBCI loan payments, then equity distributions); follow-on capital rules continue to apply after exit.
• Reporting and oversight: growth funds must submit annual and anniversary reports with investment details, job data, payroll, and audited financial statements; the department will report to the Legislature on incentives and program impact; rules and forms are to be established by the department.
• Funding source and operative condition: the program uses ARPA SSBCI funds with private capital matching, and becomes operational only after Treasury guidance is issued on the State Small Business Credit Initiative.

AI-generated summary using openai/gpt-5-nano on Feb 22, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Commerce Department