HB467 Alabama 2023 Session

Summary

Primary Sponsor

Anthony DanielsRepresentative

Democrat

Session

Regular Session 2023

Title

Relating to the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act; to amend Sections 40-9H-2 and 40-9H-3, Code of Alabama 1975; to authorize the issuance of state matching capital to certified growth funds to make capital accessible to rural and minority owned businesses.

Summary

This bill would authorize the Alabama Innovation Corporation to provide more state matching capital to certified growth funds to help rural and minority-owned businesses access capital, but only if the Legislature appropriates additional funds.

What This Bill Does

It authorizes additional state matching capital to be issued to certified growth funds, contingent on a new legislative appropriation. It uses SSBCI funds paired with growth fund matching capital, with each growth investment financed 50% by an SSBCI loan and 50% by the growth fund’s matching capital, and it sets caps on total investment authority ($50 million) and SSBCI loans ($25 million) across approved funds. It creates definitions and criteria for growth funds, growth businesses, and growth zones (including rural and minority-owned targets), and establishes terms for program funding, reporting, and loan forgiveness at exit. It also requires a minimum appropriation of $12.5 million to make the act operative.

Who It Affects

• Certified growth funds that would receive additional state matching capital and operate under the program rules.
• Rural counties and minority-owned businesses in designated growth zones that could gain improved access to capital through growth funds.
• Investors contributing to certified growth funds, who may receive state matching capital as part of the SSBCI program.
• The Alabama Innovation Corporation, which administers and oversees the matching-capital program.

Key Provisions

• Authorizes the Alabama Innovation Corporation to issue additional state matching capital to certified growth funds, contingent on a new legislative appropriation.
• Creates a funding structure using SSBCI funds with a 50/50 split per growth investment: 50% from the SSBCI loan and 50% from the growth fund's matching capital; sets caps at $50 million of investment authority and $25 million in SSBCI loans.
• Defines growth funds, growth businesses, growth zones, minority-owned businesses, and related terms; establishes eligibility criteria including location in growth zones and job/wage benchmarks.
• Establishes the SSBCI fund and loan terms (1% interest, forgiveness at exit equal to the sum of the follow-on-capital percentage and the new-annual-jobs-retained percentage, with subordination rules).
• Operative only after a minimum $12.5 million appropriation to the SSBCI Alabama account for fiscal year 2023-2024.

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

Subjects

Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act, extend program