Alabama § 40-9H-9 - Legislative Intent; Operation of Chapter.

§ 40-9H-9. Legislative Intent; Operation of Chapter.

Under Subtitle C of Title III of the American Rescue Plan Act of 2021, the United States Treasury has been appropriated certain funds to use for the support of private businesses in each of the states. Each state is given the opportunity to apply for a certain amount of these funds, provided the funds are directly invested or used to support private enterprises pursuant to financing structures that are approved by the Treasury after application by the state. It is expected that the State of Alabama will be entitled to request more than twenty-five million dollars ($25,000,000) under this federal program. It is the intent of the Legislature that the program set forth in this chapter be included as part of the State of Alabama’s application to the United States Treasury as a Venture Capital Program, and if the application is approved, that the funds provided by the Treasury be used as set forth in this chapter. The Legislature notes that the program requires a dollar for dollar private capital match to the dollars invested by the Treasury, no reduction for administrative costs, and incentives to help ensure that the federal dollars are eventually leveraged on a ten-to-one basis. The provisions of this chapter shall not become operative until guidance is released by the United States Treasury regarding the State Small Business Credit Initiative pursuant to Subtitle C of Title III of the American Rescue Plan Act of 2021.