HB541 Summary

• Creates the Innovate Alabama Matching Grant Program administered by the Alabama Innovation Corporation to provide matching grants to businesses that have received federal Small Business Innovation Research (SBIR) or Small Business Technology Transfer Research (STTR) grants.

• Eligible entities must demonstrate receipt of a Phase I SBIR grant or completion of Phase I with federal agency interest in Phase II for SBIR applications; STTR applicants must have received a grant and entered into an agreement with a public Alabama university or Tuskegee University.

• Matching grants capped at the lesser of 50% of the federal award amount or $100,000 for Phase I awards and $250,000 for Phase II awards.

• Grant agreements must require entities to maintain primary business location in Alabama, have at least one top executive residing in Alabama, and have at least 75% of employees residing in Alabama for five years following the grant agreement.

• Entities must repay grant funds if they default on agreement terms, except when ceasing to be a going concern; act becomes effective immediately upon passage and gubernatorial approval.