Alabama small businesses will receive nearly $98 million through Innovate Alabama, Gov. Kay Ivey announced June 18.
According to a press release, the dual-component program, LendAL and InvestAL, will finance loan and venture capital initiatives to enhance lender and investor confidence in the state. The program will also infuse capital into startups and small businesses, according to the release.
A public-private economic development organization, Innovate Alabama is responsible for allocating funds from the State Small Business Credit Initiative, a federal program reauthorized under the American Rescue Plan Act that provides $10 billion in grants and loans to support small businesses across the country.
Innovate Alabama board member Rep. Danny Garrett, R-Trussville, applied for the funding in April 2023.
“What Innovate Alabama is trying to do is spur the development of 21st century businesses in the state, businesses that are tech related, some of the entrepreneurship businesses of the new economy,” Garrett previously told Alabama Daily News.
Future catalyst
The organization will have three years to allocate the funds. Ivey said the funding is crucial because Alabama continues to signal that it is open for business.
“As Alabama continues to signal that it’s open for business, it is crucial that we continue to contribute to the growth of the state’s economy through our small businesses,” she said in the release. “This is a sector that has played a pivotal role in defining Alabama’s history.”
Innovate Alabama founding CEO Cynthia Crutchfield said SSBCI will be a catalyst for the state’s entrepreneurial ecosystem.
“With the advent of this program, we’re welcoming a new era for entrepreneurs in Alabama,” she said in the release. “I’m eager to witness the lasting benefits of the investment in the state, including the stimulation of a self-sustaining, durable investment landscape.”
Senate Pro Temp Greg Reed, R-Jasper, said he hopes the funding will attract more small business owners to Alabama.
“This initiative will provide yet another tool for Innovate Alabama to both support existing small businesses in Alabama and attract those who are looking to relocate to Alabama, start a business and enjoy our unique quality of life.”
EDITOR’S NOTE — This story was written by Anna Barrett and originally published by Alabama Daily News. It is reprinted with permission.
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