---
title: HB 286. Seed-Capital Fund; create a subfund to provide startup capital to certain small businesses; provisions
collection: bills
id: 2025-2026/hb286
cite_as: HB 286, 2025-2026 Regular Session (Ga.)
canonical_url: https://georgiacommons.org/bills/2025-2026/hb286
md_url: https://georgiacommons.org/bills/2025-2026/hb286.md
text_url: https://georgiacommons.org/bills/2025-2026/hb286/text
source_url: https://www.legis.ga.gov/legislation/69953
date: 2025-02-10
status: introduced
corpus_version: bills-2026-09-13
license: Public record of the Georgia General Assembly, via LegiScan; see about.md
publisher: Georgia Commons, an independent project of Georgia Civic Data. Not the State of Georgia. Not legal advice.
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omitted: votes and history
omitted_chars: 129
omitted_url: https://georgiacommons.org/bills/2025-2026/hb286.md?full=1
bill_number: HB 286
session: 2025-2026 Regular Session
session_slug: 2025-2026
chamber: House
bill_type: bill
status_date: 2025-02-05
last_action: House Second Readers
sponsors:
- Yasmin Neal
- Alan Powell
- Kasey Carpenter
- Ron Stephens
- Matthew Gambill
- Doreen Carter
text_version: Introduced
has_text: true
legiscan_url: https://legiscan.com/GA/bill/HB286/2025
upstream_id: 1958415
summaries_model: claude-sonnet-5
topic_tags:
- small business funding
- startup capital
- technical college system
- economic development
- state grants
---
# HB 286. Seed-Capital Fund; create a subfund to provide startup capital to certain small businesses; provisions
## Text
House Bill 286
By: Representatives Neal of the 79th, Powell of the 33rd, Carpenter of the 4th, Stephens of the
164th, Gambill of the 15th, and others
A BILL TO BE ENTITLED
AN ACT
To amend Chapter 10 of Title 10 of the Official Code of Georgia Annotated, relating to the
Seed-Capital Fund, so as to create a subfund to provide startup capital to certain small
businesses that are majority owned by students or graduates of a small business program of
study of TCSG; to provide for terms and conditions; to provide for conforming changes; to
provide for definitions; to provide for related matters; to repeal conflicting laws; and for
other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Chapter 10 of Title 10 of the Official Code of Georgia Annotated, relating to the
Seed-Capital Fund, is amended by revising subsection (a) of Code Section 10-10-3, relating
to administration of fund, equity contributions, and disbursements, as follows:
"(a) The fund is created as a separate fund maintained by the board or a body designated
by the board and shall be expended only as provided in this article. Pending their use as
equity contributions or as loans pursuant to this chapter, the moneys in the fund may be
invested and reinvested in accordance with the investment policies authorized by the board
or its designee. The entire cost of administration of the fund, including expenses of the
center incurred in connection with the creation, operation, management, liquidation, and
investment of fund moneys in enterprises, directly or through investment entities, may be
paid from the assets of the fund. All moneys appropriated to or otherwise paid into the
fund shall be presumptively concluded to have been committed to the purpose for which
they have been appropriated or paid and shall not lapse."
SECTION 2.
Said chapter is further amended by adding a new Code section to read as follows:
"10-10-8.
(a) As used in this Code section, the term:
(1) 'Program entrepreneur' means any student currently enrolled in or any graduate of a
small business program.
(2) 'Small business' means any corporation, partnership, sole proprietorship, or other
business entity which is organized under the laws of this state and which:
(A) Is owned 51 percent or more by one or more program entrepreneurs;
(B) Is not dominant in its field;
(C) Has been in operation for less than ten total years; and
(D) Is engaged in innovative work in the area of technology, manufacturing, or
agriculture.
(3) 'Small business program' means any program of study established by TSCG or a unit
of TCSG to provide education, training, and technical assistance to program
entrepreneurs.
(4) 'Startup capital' means money provided to a small business pursuant to this Code
section to be used exclusively for costs directly incurred in the normal course of starting
and operating a business.
(5) 'Subfund' means the small business innovation startup capital subfund created in
subsection (b) of this Code section.
(6) 'TCSG' means the Technical College System of Georgia.
(b) There is created within the fund the small business innovation startup capital subfund.
The subfund shall consist of all moneys authorized by law for deposit in the fund,
including, but not limited to, gifts, grants, private donations, and funds from government
entities. Moneys in the subfund shall be invested in the same manner as moneys in the
fund, and any interest earned on the investment of moneys in the subfund shall be credited
to the subfund. Moneys appropriated to or otherwise deposited into the subfund shall be
used exclusively for the purposes of administering the subfund and providing startup
capital to small businesses.
(c) The center may, in cooperation with TCSG, disburse money from the subfund to
provide startup capital to small businesses, provided that:
(1) The small business meets the conditions of this Code section and any requirements
established by the center and TCSG pursuant to this Code section;
(2) The center and TCSG approve a completed application submitted by the small
business that contains:
(A) A detailed business plan, including detailed descriptions of the business, its
products and services, and its management and operation; market analysis; and
financial projections;
(B) A statement of the amount, timing, and projected use of the startup capital;
(C) A statement demonstrating the potential economic and public impact of the small
business;
(D) A statement demonstrating how the small business is engaged in innovative work
in the area of technology, manufacturing, or agriculture; and
(E) Such other information as the center or TCSG shall require; and
(3) The center and TCSG find, based upon the application submitted by the small
business and such additional investigation as the center and TCSG shall make and
incorporate in its records, that:
(A) The startup capital will be used only for costs directly incurred in the normal
course of starting and operating a small business;
(B) The small business has a reasonable chance of success;
(C) The startup capital will be instrumental to the success of the small business and its
retention within this state;
(D) The program entrepreneur and other founders of the small business have already
made or are contractually committed to make a substantial financial or time
commitment to the small business; and
(E) The state will secure a return on the investment of the startup capital in the form
of establishment and growth of an innovative business in this state that will create new,
value added products, processes, or services, and encouragement of further growth and
diversification of and investment in the economy of this state.
(d) The center, in cooperation with TCSG, shall establish guidelines and procedures to
administer the provisions of this Code section."
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.
## Summaries written by Georgia Commons
The following was written by claude-sonnet-5 from the text above and is not part of the bill. Quote the text, not the summary.
House Bill 286 would create a new subfund within Georgia's Seed-Capital Fund to give startup money to small businesses majority-owned by current students or graduates of a Technical College System of Georgia (TCSG) small business program.
### Plain-language summary
Georgia already has a Seed-Capital Fund, managed by a state-designated center, that provides equity and financing to help grow businesses in the state. This bill adds a new Code section creating a special subfund inside that larger fund, aimed specifically at helping small businesses connected to TCSG's small business education programs get off the ground.
To qualify, a business must be at least 51 percent owned by a current student or graduate of a TCSG small business program, be in operation less than ten years, not be dominant in its field, and be doing innovative work in technology, manufacturing, or agriculture. The center, working with TCSG, would review applications that include a business plan, financial projections, and evidence the money is needed and will be used properly before approving startup capital. The bill also tweaks existing fund language about how uninvested money can be used while it sits idle.
### What it does
- Creates a new small business innovation startup capital subfund inside the existing Seed-Capital Fund managed by the state center.
- Limits eligibility for subfund money to small businesses at least 51 percent owned by current students or graduates of a TCSG small business program.
- Requires businesses to be under ten years old, not dominant in their field, and engaged in innovative technology, manufacturing, or agriculture work to qualify.
- Requires a detailed application including a business plan, market analysis, financial projections, and proof of economic impact before the center and TCSG can approve funding.
- Directs the center and TCSG to jointly create guidelines and procedures for running the subfund.
- Revises existing fund language so uninvested money can be held under the broader authority of the whole chapter, not just for equity contributions or loans.
### Who it affects
Small business owners who are current students or recent graduates of a Technical College System of Georgia small business program, especially those in technology, manufacturing, or agriculture. It also affects the state center that manages the Seed-Capital Fund and TCSG, which would jointly review applications and administer the new subfund.
### Why it matters
Eligible entrepreneurs connected to TCSG programs would gain a dedicated source of startup money, separate from the general Seed-Capital Fund, specifically meant to cover costs of launching and running a new business. Businesses that do not meet the ownership, age, or industry criteria would not qualify for this particular pool of funding.
### Key provisions
- Section 1 revises O.C.G.A. § 10-10-3 so that uninvested fund money can be used under the broader authority of the chapter rather than being limited to equity contributions or loans.
- Section 2 adds a new O.C.G.A. § 10-10-8 creating the small business innovation startup capital subfund, funded by gifts, grants, donations, and government funds, with interest credited back to the subfund.
- Section 2 defines a qualifying 'small business' as at least 51 percent owned by a program entrepreneur, under ten years old, not dominant in its field, and engaged in innovative technology, manufacturing, or agriculture work.
- Section 2 requires applicants to submit a business plan, funding use statement, economic impact statement, and innovation statement, subject to approval by the center and TCSG.
- Section 2 requires the center and TCSG to find that the funding is needed, the business has a reasonable chance of success, and founders have made a substantial commitment before approving startup capital.
- Section 2 directs the center and TCSG to jointly establish guidelines and procedures for administering the subfund.
- Section 3 repeals any conflicting laws.
## Status
- Status: Introduced (2025-02-05)
- Last action: House Second Readers (2025-02-10)
- Sponsors: Yasmin Neal, Alan Powell, Kasey Carpenter, Ron Stephens, Matthew Gambill, Doreen Carter
- Official page: https://www.legis.ga.gov/legislation/69953
> The history, votes, and amendments (129 characters) are at https://georgiacommons.org/bills/2025-2026/hb286.md?full=1