HB600 Summary

• Creates the Alabama Small Business Financing Authority to assist small businesses in obtaining financing for new ventures or business expansion through partnerships with lenders.

• Establishes a board consisting of the Director of ADECA, Director of Alabama Development Office, State Treasurer, two appointed bankers, and two Governor-appointed members with small business experience.

• Authorizes the authority to make loans, guarantees, and commitments to lenders and to establish loan guarantee programs, loan participation programs, and loss reserve funds for participating banks and lenders.

• Defines eligible small businesses as for-profit enterprises with $10 million or less in annual gross income, fewer than 500 employees, net worth of $2 million or less, or not-for-profit entities with 501(c)(3) tax-exempt status.

• Creates the Alabama Small Business Capital Access Fund in the State Treasury to be funded by federal Small Business Jobs Act allocations and investment income, with funds used for loans, guarantees, loss reserves, and interest rate reductions.