HB541 Alabama 2021 Session

Summary

Primary Sponsor

Bill Poole

Republican

Session

Regular Session 2021

Title

Alabama Innovation Corporation; incorporation; legislative findings, implementation of Small Business Innovation Research or Small Business Technology grants, board of directors, powers, contracts, investments, Sec. 41-10-800 to 41-10-810, inclusive, added

Summary

HB541 would create the Innovate Alabama Matching Grant Program to provide state matching funds to Alabama entities that have received federal SBIR or SBTT grants, to help commercialize research and grow high‑tech jobs.

What This Bill Does

The Alabama Innovation Corporation would be authorized to award matching grants to eligible entities that have federal SBIR or SBTT grants. For SBIR, the matching grant can cover up to 50% of the federal award, with caps of $100,000 for Phase I or $250,000 for Phase II; for SBTT, the entity must have an SBTT grant and an agreement with a Alabama public university (including Tuskegee University). Applications are reviewed by the board, and grants are issued through a grant agreement that specifies use of funds, in‑state residency requirements for five years, a time frame to actually receive the federal funds, and repayment if the entity defaults. The program includes rules to be set by the corporation and would take effect immediately upon the Governor’s signature.

Who It Affects

• Alabama-based small businesses and research entities seeking federal SBIR or SBTT funding, who could qualify for state matching grants to help fund their projects.
• Public universities in Alabama (including Tuskegee University) and their partner research entities, which must be involved in SBTT projects and may be part of the required agreement for eligible grants.

Key Provisions

• Establishes the Innovate Alabama Matching Grant Program within the Alabama Innovation Corporation to provide matching funds for SBIR/SBTT awards.
• SBIR eligibility: Phase I requires a federal SBIR grant in response to a solicitation; Phase II requires a Phase I report, a Phase II proposal, and a federal letter of support.
• SBTT eligibility: Must have a federal SBTT grant and an agreement with a public Alabama university or Tuskegee University.
• Grant amounts: Less than the lesser of 50% of the federal grant or $100,000 for Phase I SBIR or $250,000 for Phase II SBIR/Phase II SBTT.
• Grant terms: Grant agreements specify amount, approved use (not for private investment or debt repayment), in-state residency requirements for 5 years, timely receipt of federal funds, and repayment if the entity defaults.
• Board approval required for grant awards and the corporation may adopt rules to implement the program.
• Effective date: In effect immediately after the Governor signs the bill.

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

Subjects

Innovation Corporation