About this programme
LendAL is Innovate Alabama's credit-enhancement program under the State Small Business Credit Initiative (SSBCI). The State of Alabama was awarded up to $98 million from the U.S. Department of the Treasury through SSBCI, and up to $65 million of that is allocated to support debt capital lending through LendAL.
LendAL does not lend money directly. Instead it works with enrolled lending institutions and shares the credit risk on a loan, so a lender who would otherwise decline an application can find the risk low enough to approve it. Innovate Alabama receives its Treasury funding in three tranches and can only draw the next tranche once it has deployed 80% of the previous one and passed Treasury compliance audits.
Borrowers can range from new startups to well-established businesses, and the business does not need to be headquartered in Alabama, though the loan proceeds and benefits need to occur in Alabama. Innovate Alabama says its mission centers on entrepreneurship, technology and innovation, so high-growth companies are a focus of LendAL, but not the exclusive one.
How it works
LendAL can support loans of up to $5,000,000 to businesses with up to 750 employees. A lender still has to believe the borrower can repay the loan; LendAL only lowers the lender's risk, it does not guarantee approval.
LendAL offers three credit enhancements to enrolled lenders: the W. H. Wills Loan Guaranty Program, where Innovate Alabama shares in the loan loss and reimburses the lender 50% of a realized loss; the Collateral Support Program, where Innovate Alabama deposits funds to offset a collateral gap, up to 50% of the loan; and the Loan Participation Program, where Innovate Alabama purchases 30% of the loan from the lender and is subordinated to the lender if the loan defaults (the lender gets repaid first). Innovate Alabama works with the lender to choose the enhancement that fits the specific loan request.
Loan proceeds can be used for a wide range of purposes; it's easier to name what's prohibited: repaying delinquent federal or state income taxes (unless a payment plan is in place), repaying taxes held in trust or escrow such as payroll or sales taxes, reimbursing funds owed to any business owner (including equity investment), or buying out an owner's ownership interest (with a narrow exception for qualifying employee stock ownership plans, worker cooperatives, or employee ownership trusts that end up with majority ownership). LendAL-enhanced loans can also be used to refinance existing debt, as long as there is a demonstrated material benefit to the business.
Who can apply
Businesses with up to 750 employees are the targeted borrowers; the business does not need to be headquartered in Alabama, but the loan's proceeds and benefits must occur in Alabama.
You apply through one of LendAL's enrolled lending institutions, not directly through Innovate Alabama. The lender determines whether it can approve the loan and can seek a LendAL credit enhancement if needed.
How to apply
- Engage a lender or technical assistance provider to prepare your application.
- If your loan can't be approved on its own, the lender can seek one of Innovate Alabama's three credit enhancements to reduce their risk on the loan.
- If the enhancement lowers the lender's risk enough, they approve the loan and provide the capital.
- If you don't yet have a lender relationship, complete Innovate Alabama's short capital needs survey to get connected.
Frequently asked
Does LendAL guarantee I'll get a loan?
No. The credit enhancement lowers the lender's risk, but the lender still has to be satisfied the borrower can repay the loan. If the risk is still too high, even a LendAL enhancement may not be enough to get approval.
How long does it take to get a LendAL-enhanced loan?
There's no predetermined timeframe. A loan could be approved within five days or take several months, largely depending on how ready your financial package and business plan are for the lender's review.
What can't I use the loan proceeds for?
You can't use them to repay delinquent income taxes without a payment plan, to repay taxes held in trust or escrow (like payroll or sales taxes), to reimburse an owner's funds including equity investment, or to buy out an owner's stake, apart from a narrow exception for qualifying employee ownership structures.
Can I use a LendAL loan to refinance existing debt?
Yes, as long as there is a demonstrated material benefit to the business from the refinancing.
What are LendAL's three credit enhancements?
The W. H. Wills Loan Guaranty Program reimburses the lender 50% of a realized loss; the Collateral Support Program deposits funds to cover up to 50% of a collateral gap; and the Loan Participation Program has Innovate Alabama buy 30% of the loan, subordinated to the lender if the loan defaults.
More funding in Alabama
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Blazer Bridge Fund
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Boost (Innovation Depot)
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Innovate Alabama Capital Access Fund
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A $15 million evergreen fund making $100,000-$250,000 direct investments in pre-seed to Series A Alabama startups with a 1:1 private match.
Alabama Launchpad
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Alabama's longest-running pitch competition, awarding up to $100,000 plus $2,500 to every finalist in three industry tracks.
Innovate Alabama Supplemental Grant Program
Innovate Alabama · Alabama
Matching grant up to $250,000 for Alabama companies with active federal SBIR or STTR awards, opened in periodic rounds.
Reviewed 2026-09-25. Programmes change, so check eligibility, amounts and deadlines on the official page before you apply. CapEasy is a private firm and is not part of any government body.