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.

Furthermore, the bill establishes the Alabama Rural, Agribusiness, and Opportunity Zone Jobs Act Account, allowing for an appropriation of up to $25 million from this account instead of a fixed allocation from the American Rescue Plan Act. It modifies the application process for growth funds, extending the application acceptance period from 30 to 90 days post-appropriation. The bill also sets criteria for growth fund certification, mandates that growth funds forfeit management fees if they do not invest 100% of their authority within 12 months, and outlines conditions for maintaining investment levels. Additionally, it introduces new reporting requirements and a process for growth funds to exit the program after seven years, contingent on meeting specific criteria. The act will take effect only after a minimum appropriation of $12.5 million is made 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