AL HB215

Proposes constitutional amendment to create a Small Business and Job Creation Fund administered by the Alabama Development Office to provide loans for businesses forming new enterprises that create or preserve jobs.

Requires transfer of $50 million annually from the Alabama Trust Fund to the Small Business and Job Creation Fund for fiscal years 2012-2015, with loan repayments deposited back into the Alabama Trust Fund.

Prohibits transfers if the Alabama Trust Fund capital would fall below $2 billion or in years following achievement of 5% or less unemployment; allows unused annual transfer amounts to carry forward to subsequent years.

Limits individual business loans to $25,000 for businesses creating 5-10 jobs and $100,000 for businesses creating 11 or more jobs, with interest rates matched to industry standards unless changed by future legislation.

Requires annual audits by the Alabama Development Office to verify loan recipients maintain required employment levels until loans are paid in full; allows Legislature to provide additional implementation details by future act.