AL HB126

Proposes constitutional amendment to create a Small Business and Job Creation Fund administered by the Department of Commerce for lending to new business entities.

Transfers $50 million annually from the Alabama Trust Fund to the Small Business and Job Creation Fund for three fiscal years (October 1, 2014 through September 30, 2017).

Transfers prohibited if Alabama Trust Fund capital would fall below $2 billion or in years following unemployment rates of 5% or less; unused transfer amounts may be carried to subsequent years.

Loan limits capped at $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 adjusted by Legislature.

Requires annual audits by Department of Commerce for all loan recipients to verify maintenance of employment requirements until loan repayment is complete; Legislature may provide further administration and implementation details.