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, which clarifies the responsible state body for fund management. The bill also repeals Section 40-9H-9, which previously outlined legislative intent regarding the use of funds from the American Rescue Plan Act of 2021, indicating a shift away from reliance on federal funding sources. Additionally, it updates definitions related to growth businesses and funds, emphasizing the creation and retention of high-wage jobs, and establishes criteria for growth businesses, including those with fewer than 200 employees and those 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, and modifies loan agreement terms for growth funds, including a 1% interest rate and potential loan forgiveness based on job metrics. It extends the application period for growth fund certification from 30 to 90 days and maintains requirements for significant prior investments in nonmetropolitan and minority-owned businesses. The bill also introduces strict investment mandates for growth funds, requiring them to invest 100% of their authority in designated areas within 12 months, with specific percentages allocated to agribusiness, minority-owned businesses, rural areas, and opportunity zones. The legislation will take effect three months after passage, contingent upon a minimum appropriation of $12.5 million to the new account 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