HB286: HB286 Seed-Capital Fund; create a subfund to provide startup capital to certain small businesses; provisions

Georgia already runs a Seed-Capital Fund through Chapter 10 of Title 10 of state law to provide equity investments and loans to businesses. This bill adds a new piece to that fund aimed specifically at people connected to the Technical College System of Georgia (TCSG). It creates a 'small business innovation startup capital subfund' fed by gifts, grants, donations, and government funds. The center that runs the Seed-Capital Fund, working with TCSG, could give startup money from this subfund to small businesses that are at least 51 percent owned by a current student or graduate of a TCSG small business program, have existed less than ten years, are not dominant in their field, and work in technology, manufacturing, or agriculture. Businesses must submit a detailed application, and the center and TCSG must find the money will help the business succeed and stay in Georgia. The bill also updates the fund's general administration language and repeals conflicting laws.

• Creates a new small business innovation startup capital subfund inside Georgia's existing Seed-Capital Fund (O.C.G.A. Chapter 10 of Title 10).
• Limits eligibility for this new startup capital to small businesses at least 51 percent owned by current students or graduates of a TCSG small business program.
• Requires eligible small businesses to be less than ten years old, not dominant in their field, and engaged in technology, manufacturing, or agriculture work.
• Requires the fund's administering center and TCSG to review a detailed application, including a business plan and financial projections, before approving funding.
• Directs the center and TCSG to jointly create guidelines and procedures for running the new subfund.
• Updates the general rule for how the overall Seed-Capital Fund handles investment, administration costs, and appropriated money.

Small business owners who are current students or graduates of a Technical College System of Georgia small business program, the agency (the 'center') that administers the Seed-Capital Fund, and TCSG itself, which would help review applications and set rules for the new startup capital subfund.

Georgians who complete a TCSG small business program could gain access to a dedicated pool of startup money for technology, manufacturing, or agriculture ventures, potentially making it easier to launch or grow a business tied to their technical college training.

• Section 1 revises O.C.G.A. § 10-10-3 to clarify how the overall Seed-Capital Fund is administered, invested, and how appropriated money is treated so it does not lapse.
• Section 2 adds new O.C.G.A. § 10-10-8, defining terms like 'program entrepreneur,' 'small business,' 'small business program,' 'startup capital,' and 'subfund.'
• Section 2 creates the small business innovation startup capital subfund, funded by gifts, grants, donations, and government funds, with its own investment and interest tracking.
• Section 2 sets eligibility conditions: 51 percent ownership by a program entrepreneur, less than ten years in operation, not dominant in its field, and work in technology, manufacturing, or agriculture.
• Section 2 requires a completed application with a business plan, funding use statement, economic impact statement, and innovation statement before approval.
• Section 2 requires the center and TCSG to find the business has a reasonable chance of success and that funding will help the state see a return through business growth in Georgia.
• Section 3 repeals any conflicting laws.

1. 2025-02-10House Second Readers (House)
2. 2025-02-06House First Readers (House)
3. 2025-02-05House Hopper (House)

• Yasmin Neal (D, HD-079)Primary sponsor
• Alan Powell (R, HD-033)
• Kasey Carpenter (R, HD-004)
• Ron Stephens (R, HD-164)
• Matthew Gambill (R, HD-015)
• Doreen Carter (D, HD-093)

• small business funding
• startup capital
• Technical College System of Georgia
• economic development
• seed capital fund