SB338 Alabama 2021 Session

Summary

Primary Sponsor

Greg J. Reed

Republican

Session

Regular Session 2021

Title

Innovate Alabama Matching Grant Program, matching grants to entities receiving Small Business Innovation Research or Small Business Technology grants, Secs. 41-10-820 to 41-10-823, inclusive, added.

Summary

The bill creates the Innovate Alabama Matching Grant Program to provide state-funded matching grants to Alabama entities that have received federal SBIR or STTR grants to help commercialize their research.

What This Bill Does

The Alabama Innovation Corporation could award matching grants to eligible entities up to 50% of the federal SBIR/STTR grant, with a cap of $100,000 for Phase I matches and $250,000 for Phase II matches. For SBIR, applicants must show either a Phase I grant or Phase II readiness with feedback from the federal agency; for STTR, applicants must have an STTR grant and partner with an Alabama public university or Tuskegee University. Grants come with conditions, including maintaining a primary business presence in Alabama, residence requirements for top executives and 75% of employees, and a potential repayment if the entity defaults (unless it ceases to operate). The program would be governed by guidelines set by the corporation and implemented through grant agreements following board approval.

Who It Affects

• Eligible Alabama-based businesses that have received or will seek SBIR or STTR grants, who could receive a state matching grant to supplement their federal funding.
• Alabama public universities and Tuskegee University, which must partner with private entities for STTR grants under the program.
• The Alabama workforce and leadership, as the grants require the primary business to be in Alabama, the top executives to reside in Alabama, and at least 75% of employees to reside in Alabama for five years.
• The Alabama Innovation Corporation and its board staff, which would review applications, set program guidelines, issue grants, and enforce grant terms.

Key Provisions

• Creates the Innovate Alabama Matching Grant Program and adds 41-10-820 to 41-10-823 to the Code of Alabama 1975.
• The Alabama Innovation Corporation may establish priorities, guidelines, standards, and processes for awarding matching grants and require applications on forms it issues.
• SBIR criteria: eligible entities must show either a Phase I grant (specific solicitation) or Phase II readiness (Phase I final report, Phase II proposal, and a letter of support from the federal agency).
• STTR criteria: eligible entities must have an STTR grant and partner with a public university in Alabama or Tuskegee University as required by the program.
• Grant amounts: not to exceed 50% of the federal SBIR/STTR grant award, with caps of $100,000 for Phase I and $250,000 for Phase II matches.
• Grant agreements must specify the use of funds (not for personal investment or debt repayment), residency requirements (Alabama-based business, top executives in Alabama, 75% of employees in Alabama for five years), and timely receipt of the federal grant funds.
• Default terms require repayment of grant monies if the entity defaults, with an exception if the entity ceases to be a going concern.
• The corporation may adopt rules to implement the article, and the act becomes effective immediately upon passage.

AI-generated summary using openai/gpt-5-nano on Feb 23, 2026. May contain errors — refer to the official bill text for accuracy.

Subjects

Innovation Corporation