Committee hears Seed Capital Fund proposal to give technical-college graduates access to start-up grants

Representative Neil presented House Bill 286, a proposal to create a Seed Capital Fund sub-fund under the existing Invest Georgia Fund to provide start-up capital to small businesses that complete a short, specialized program at the Technical College System of Georgia (TCSG).

Neil said the program is intended to pair a short, hands-on business curriculum (described as equivalent to “a mini MBA”) with direct access to grant capital for program graduates. The bill would allow public and private dollars to be placed into the sub-fund; TCSG would administer program criteria, evaluate applicants and provide technical assistance, the sponsor said.

Committee members asked whether funded businesses would be required to remain in Georgia, whether the state could match private funds, and how much money would be initially appropriated. Neil and other speakers said the bill as written allows public and private investment in the sub-fund and that community banks and credit unions had already expressed interest in contributing once the program was established. Neil said a prior legislative action had allocated $1.1 million to the initiative but implementation hurdles (including potential gratuities/constitutional issues) prevented moving the funds last year.

Some members expressed support for adding language to require funded businesses to remain in Georgia; the sponsor called that an “easy friendly amendment.” Committee members also discussed constitutional constraints and whether the sub-fund structure would avoid the need for a new constitutional amendment. The hearing concluded with members indicating they would work with the sponsor on amendments and future hearings.