The bill amends the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act to improve access to capital for rural and minority-owned businesses by allowing the issuance of state matching capital to certified growth funds. Key changes include replacing the term "SSBCI" with "Alabama Innovation Corporation" in the definitions section and repealing Section 40-9H-9, which previously outlined legislative intent regarding funds from the American Rescue Plan Act of 2021. The act will become effective upon a specified appropriation, and it clarifies definitions related to growth businesses and funds, specifying that eligible growth businesses must have fewer than 200 employees and operate primarily in designated growth zones.

Additionally, the bill establishes the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act Account, allowing for an appropriation of up to $25 million, and modifies loan agreement terms for growth funds, including a 1% interest rate and provisions for loan forgiveness based on job creation metrics. It revises the application process for growth fund certification, extending the application acceptance period from 30 to 90 days, and emphasizes the importance of economic impact assessments. The bill also introduces penalties for growth funds that fail to invest their full authority within 12 months and establishes a process for funds to exit the program after seven years, contingent upon compliance with investment requirements. Overall, the bill aims to stimulate economic growth in underserved areas while ensuring accountability and compliance among growth funds.

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