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HB 286

Seed-Capital Fund; create a subfund to provide startup capital to certain small businesses; provisions

2025-2026 Regular Session Introduced by Kasey Carpenter and 5 co-sponsors

House Bill 286 creates a subfund to provide startup capital for small businesses owned by TCSG program graduates, boosting innovation and economic growth in Georgia.

House Second Readers
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Bill Summary · HB 286

Summary of House Bill 286 (HB 286)

Purpose and Intent

House Bill 286 aims to establish a small business innovation startup capital subfund within the existing Seed-Capital Fund in Georgia. The primary objective of this legislation is to provide financial support in the form of startup capital to small businesses that are majority-owned by students or graduates of small business programs offered by the Technical College System of Georgia (TCSG). This initiative seeks to foster entrepreneurship and innovation among emerging business leaders in the state.

Key Provisions

The bill introduces several important provisions:

  1. Creation of a Subfund:

    • A new subfund, referred to as the small business innovation startup capital subfund, will be created within the Seed-Capital Fund.
    • This subfund will consist of various sources of funding, including gifts, grants, private donations, and government funds.

  2. Eligibility Criteria for Small Businesses:

    • To qualify for funding, a small business must:
      • Be at least 51% owned by one or more program entrepreneurs (students or graduates of TCSG small business programs).
      • Have been in operation for less than ten years.
      • Not be dominant in its field and must engage in innovative work within technology, manufacturing, or agriculture.

  3. Application Process:

    • Small businesses seeking startup capital must submit a detailed application that includes:
      • A comprehensive business plan.
      • Financial projections and market analysis.
      • A statement on the intended use of funds and the potential economic impact.
    • The application must demonstrate the business's commitment to innovation and its potential for success.

  4. Disbursement of Funds:

    • The center, in collaboration with TCSG, will be responsible for disbursing funds from the subfund to eligible small businesses.
    • Funds must be used exclusively for costs associated with starting and operating the business.

  5. Investment and Administration:

    • The subfund's moneys will be invested according to the investment policies authorized by the board overseeing the Seed-Capital Fund.
    • The administration costs associated with the fund will be covered by its assets.

Impact

  • Target Audience: The bill primarily affects small businesses in Georgia that are owned by TCSG program entrepreneurs, thereby promoting local entrepreneurship and innovation.
  • Economic Growth: By providing startup capital, the bill aims to stimulate economic growth, create new jobs, and encourage the development of innovative products and services within the state.

Procedural Aspects

  • Introduced: February 5, 2025
  • Current Status: The bill is currently at the House Second Readers stage as of February 10, 2025, following its introduction and first reading in the House.

Conclusion

House Bill 286 represents a strategic effort by the Georgia General Assembly to support emerging entrepreneurs and enhance the state's economic landscape through targeted financial assistance to innovative small businesses. By focusing on program entrepreneurs from TCSG, the bill seeks to leverage educational resources to foster a new generation of business leaders.

Compiled from official sources — confirm details with the bill’s official record.

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