The bill amends the Rhode Island Small Business Development Fund laws, introducing a new definition for "Minority business enterprise" that allows for self-certification in line with the Rhode Island department of administration’s rules. It also revises the application process for small business development funds seeking capital investment certification, requiring a detailed business plan, evidence of past investments, job creation or retention estimates, and a revenue impact assessment. The bill defines key terms such as "Capital investment," "Eligible business," "Eligible distribution," "Jobs created," and "Jobs retained," and sets the "Credit allowance date" and "Qualified investment" terms, including a cap on investments and a prohibition on receiving more than four million dollars from small business development funds. A nonrefundable application fee of five thousand dollars is mandated, and the corporation is required to start accepting applications within ninety days of July 5, 2019.

The legislation also addresses the conditions for denying applications for tax credits, such as non-compliance with criteria or insufficient economic impact, and sets a 15-day period for applicants to address issues in case of denial. It specifies the order of certification based on application receipt and mandates proportional certification for applications received simultaneously. A significant insertion in the bill allows the corporation to allocate more than twenty million dollars to a small business development fund that has fully utilized a previous allocation, increasing the corporation's flexibility in fund distribution. The act is effective immediately upon passage.