The bill SB315 Enrolled amends the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act by authorizing the issuance of state matching capital to certified growth funds, which aims to enhance capital accessibility for rural and minority-owned businesses. It repeals Section 40-9H-9 of the Code of Alabama 1975, which related to the allocation of funds from the American Rescue Plan Act of 2021. The bill introduces new definitions such as "follow-on capital" and "matching capital," and updates existing definitions like "growth business," "growth fund," and "growth investment." It also replaces the Alabama Innovation Corporation in place of references to the State Small Business Credit Initiative (SSBCI), reflecting a shift in the responsible department.

The bill revises the application and certification process for growth funds, detailing the required information and criteria for approval. It sets investment requirements for growth funds, including the mandate to invest 100 percent of their investment authority within 12 months, with a focus on agribusiness, minority-owned businesses, rural areas, and qualified opportunity zones. The bill outlines consequences for non-compliance, such as forfeiture of management fees and immediate loan dues, but also provides a mechanism for funds to correct violations. The act will become effective on the first day of the third month following its passage and approval by the Governor, subject to a specified appropriation for the fiscal year 2024-2025.

Statutes affected:
Introduced: 40-9H-2, 40-9H-5, 40-9H-7
Enrolled: 40-9H-2, 40-9H-5, 40-9H-7