North Carolina 2025 Session Status: In Committee 8 D cosponsors

SB 1056 — NC Small Business Capital and Jobs Act.

Last action — Withdrawn From Com

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  1. ✓
    Introduced
  2. 2
    In Committee
  3. 3
    Passed Senate
  4. 4
    Passed House
  5. 5
    To Executive
  6. 6
    Enacted

This bill is in committee in the Senate. Introduced April 30, 2026. It must pass committee before a floor vote.

Next likely step: a committee vote, then a floor vote in the Senate.

Prognosis

Stalled 26% · moderate confidence

Where this bill stands today.

Odds of enactment

Low

How often bills like it became law.

  • In Committee

    Current position in the legislative process.

  • 8 sponsors

    2 primary, 6 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (8 D).

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Bill Text

What changed in the latest version

53 added · 54 removed

Plain-language change summary

The recent changes to Senate Bill 1056 include additional language focusing on strengthening the state's economy and supporting disadvantaged areas, particularly those with persistent poverty. These updates emphasize the development of new program guidelines and the importance of evaluating program performance every three years. This matters because it aims to ensure that resources are effectively directed to communities in need, potentially boosting economic opportunities and fostering long-term growth in North Carolina.

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FILED SENATE GENERAL ASSEMBLY OF NORTH CAROLINA Apr 30, 2026 S.B.
GENERAL ASSEMBLY OF NORTH CAROLINA SESSION 2025 S 1 SENATE BILL 1056 Short Title:
1056 SESSION 2025 PRINCIPAL CLERK S D SENATE BILL DRS35450-MCfa-248 Short Title:
A BILL TO BE ENTITLED AN ACT TO ENACT THE NC SMALL BUSINESS CAPITAL AND JOBS ACT.
Rules and Operations of the Senate May 4, 2026 A BILL TO BE ENTITLED AN ACT TO ENACT THE NC SMALL BUSINESS CAPITAL AND JOBS ACT.
(5) North Carolina has an opportunity to strengthen its economy by implementing a coordinated strategy to expand capital access for small businesses and businesses in underserved communities.
(5) North Carolina has an opportunityto strengthen its economybyimplementing a coordinated strategy to expand capital access for small businesses and businesses in underserved communities.
– The purpose of this Act is to establish a comprehensive framework to expand access to capital for small businesses and businesses in underserved communities, disadvantaged areas, and census tracts with persistent poverty throughout North Carolinathrough coordinated loan guarantees, direct investment, support for community lenders, technical assistance, and incentives for private investment.
– The purpose of this Act is to establish a comprehensive framework to expand access to capital for small businesses and businesses in underserved communities, disadvantaged areas, and census tracts with persistent povertythroughout NorthCarolinathrough coordinated loan guarantees, direct investment, support for community lenders, technical assistance, and incentives for private investment.
*DRS35450-MCfa-248* General Assembly Of North Carolina Session 2025 (5) Growth-stage business.
*S1056-v-1* General Assembly Of North Carolina Session 2025 (5) Growth-stage business.
– There is established the Small Business Capital Access Oversight Board to provide strategic guidance for the Program by (i) reviewing and approving programguidelinesdevelopedbytheOffice;(ii)monitoringprogramperformanceandoutcomes;
– There is established the Small Business Capital Access Oversight Board to provide strategic guidance for the Program by (i) reviewing and approving program guidelinesdevelopedbytheOffice;(ii)monitoringprogramperformanceandoutcomes;
provided that, initial appointments, as determined by the Board, shall be staggered to ensure at least two members are appointed annually.
provided that, initial appointments, as determined bythe Board, shall be staggered to ensure at least two members are appointed annually.
Page 2 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 (6) Two members appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives, including one representative of achamberofcommerceorbusinessassociation;andonesmallbusiness owner from an urban county.
Page 2 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 (6) Two members appointed by the General Assembly upon recommendation of the Speaker of the House of Representatives, including one representative of achamberofcommerceorbusinessassociation;andonesmallbusiness owner from an urban county.
143B-437.08 or in a persistent povertycensus tract andupto eighty percent (80%)forother small businesses;
143B-437.08 or in a persistent povertycensus tract andupto eightypercent (80%)forother small businesses;
DRS35450-MCfa-248 Page 3 General Assembly Of North Carolina Session 2025 a.
Senate Bill 1056-First Edition Page 3 General Assembly Of North Carolina Session 2025 a.
Page 4 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 1.
Page 4 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 1.
(ii) support university technology commercializationpartnerships with small businesses;
(ii) support university technologycommercializationpartnerships with small businesses;
(ii) provide physical space, equipment, and DRS35450-MCfa-248 Page 5 General Assembly Of North Carolina Session 2025 resources for entrepreneurs;
(ii) provide physical space, equipment, and Senate Bill 1056-First Edition Page 5 General Assembly Of North Carolina Session 2025 resources for entrepreneurs;
The Office shall contract forandprocureanindependent evaluation byaqualifiedexternalentityeverythreeyears and shall submit an annual report to the Governor and General Assembly by October 1, which shall include all of the following:
The Office shall contract forandprocureanindependent evaluation byaqualifiedexternalentityeverythree years and shall submit an annual report to the Governor and General Assembly by October 1, which shall include all of the following:
– Anindividualorbusiness thatcontrols,is controlled by, oris under common control with another individual or business.
– Anindividualorbusiness thatcontrols,is controlled by,oris under common control with another individual or business.
– A corporation, partnership, limited liability company, association, or sole proprietorship operated for profit.
– A corporation, partnership, limited liabilitycompany, association, or sole proprietorship operated for profit.
Page 6 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 c.
Page 6 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 c.
– A business that (i) is registered with the Secretary of State under G.S.
– A business that (i) is registered with the Secretaryof State under G.S.
105-163.013, (ii) has received during the current year or any of the preceding three years assistance from the Office of Small Business Capital Access pursuant to G.S.
105-163.013, (ii) has received during the current year or anyof the preceding three years assistance from the Office of Small Business Capital Access pursuant to G.S.
§§ 78a, et seq., or its wholly owned subsidiary, (iii) an investment company as defined in the Investment CompanyActof1940,15U.S.C.§§80a-1,etseq.,whetherornotitisrequired to register under that act, (iv) a small business investment company as defined in the Small Business Investment Act of 1958, 15 U.S.C.
§§ 78a, et seq., or its wholly owned subsidiary, (iii) an investment company as defined in the Investment CompanyActof1940,15U.S.C.§§80a-1,etseq.,whetherornotitisrequired to register under that act, (iv) a small business investment companyas defined in the Small Business Investment Act of 1958, 15 U.S.C.
A domestic or foreign corporation that (i) is tax-exempt pursuant to section 501(c)(3) of the Code, (ii) has as its principal purpose the stimulation of the development of the biotechnology industry, and (iii) in furtherance of that purpose has received, or is a successor in interest to an organization that has received, direct appropriations from the State in at least three fiscal years.
A domestic or foreign corporation that (i) is tax-exempt pursuant to section 501(c)(3) of the Code, (ii) has as its principal purpose the stimulation of the development of the biotechnologyindustry, and (iii) in furtherance of that purpose has received, or is a successor in interest to an organization that has received, direct appropriations from the State in at least three fiscal years.
DRS35450-MCfa-248 Page 7 General Assembly Of North Carolina Session 2025 I.
Senate Bill 1056-First Edition Page 7 General Assembly Of North Carolina Session 2025 I.
105-163.013, and (ii) has received during the current yearoranyofthepreceding threeyearsagrant, aninvestment, orother funding from a federal agency under the Small Business Innovation Research Program administered by the United States Small Business Administration or from a granting entity as defined in this section.
105-163.013, and (ii) has received during the current yearoranyoftheprecedingthree yearsa grant, an investment, orother funding from a federal agency under the Small Business Innovation Research Program administered by the United States Small Business Administration or from a granting entity as defined in this section.
It has been certified by a constituent institution of The University of North Carolina or a research university as currently performing under a licensing agreement with the institution or university for the purpose of commercializing technology developed at the institution or university.
It has been certified by a constituent institution of The University of North Carolina or a research university as currently performing under a licensing agreement with the institution or universityfor the purpose of commercializing technology developed at the institution or university.
Page 8 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 (10) Real estate-related business.
Page 8 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 (10) Real estate-related business.
– No credit is allowed under this section for a purchase of equity securities or subordinated debt if a broker's fee or commission or other similar remuneration is paid or given directly or indirectly for soliciting the purchase.
– No credit is allowed under this section for a purchase of equitysecurities or subordinated debt if a broker's fee or commission or other similar remuneration is paid or given directly or indirectly for soliciting the purchase.
105-163.012, an individual eligible investor who purchases the equity securities or subordinated debt of a qualified businessan eligible business directly from that business is allowed as a credit against the tax imposed by Part2 of this Article for the taxable year an amount equal to twenty-five percent (25%) of the amount invested.
105-163.012, an individual eligible investor who purchases the equity securities or subordinated debt of a qualified businessan eligible business directly from that business is allowed as a credit against the tax imposed byPart 2 of this Article for the taxable year an amount equal to twenty-five percent (25%) of the amount invested.
The credit may not be taken for the year in which the investment is made DRS35450-MCfa-248 Page 9 General Assembly Of North Carolina Session 2025 but may be taken for the taxable year beginning during the calendar year in which the application for the credit becomes effective as provided in subsection (c) of this section.
The credit may not be taken for the year in which the investment is made Senate Bill 1056-First Edition Page 9 General Assembly Of North Carolina Session 2025 but maybe taken for the taxable year beginning during the calendar year in which the application for the credit becomes effective as provided in subsection (c) of this section.
105-163.012, a pass-through entity that purchases the equity securities or subordinated debt of a qualified business directly from the business is eligible for a tax credit equal to twenty-five percent (25%) of the amount invested.
105-163.012, a pass-through entity that purchases the equitysecurities or subordinated debt of a qualified business directlyfrom the business is eligible for a tax credit equal to twenty-five percent (25%) of the amount invested.
Each individual who is an owner of a pass-through entity is allowed as a credit against the tax imposed by Part 2 of this Article for the taxable year an amount equal to the owner's allocated share of the credits for which the pass-through entity is eligible under this subsection.
Each individual who is an owner of a pass-through entity is allowed as a credit against the tax imposed byPart 2 of this Article for the taxable year an amount equal to the owner's allocated share of the credits for which the pass-through entity is eligible under this subsection.
The aggregate amount of credit allowed an individual for one or more investments made in a single taxable year under this Part, whether directly or indirectly as owner of a pass-through entity, may not exceed fifty thousand dollars ($50,000).
The aggregate amount of credit allowed an individual for one or more investments made in a single taxable year under this Part, whether directlyor indirectlyas owner of a pass-through entity, may not exceed fifty thousand dollars ($50,000).
An application is effective for the year in which it is timely filed.
An application is effective for the year in which it is timelyfiled.
If the total amount of tax credits claimed for investments made in a calendar year exceeds this Page 10 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 maximum amount, the Secretary shall allow a portion of the credits claimed by allocating the maximum amount in tax credits in proportion to the size of the credit claimed by each taxpayer.
If the total amount of tax credits claimed for investments made in a calendar year exceeds this Page 10 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 maximum amount, the Secretary shall allow a portion of the credits claimed by allocating the maximum amount in tax credits in proportion to the size of the credit claimed by each taxpayer.
Offering any form of entertainment, amusement, recreation, or athletic or fitness activity for which an admission or a membership is charged.
Offeringanyform of entertainment, amusement, recreation, or athletic or fitness activity for which an admission or a membership is charged.
For the purpose of this Article, if a taxpayer's investment is placed initially in escrow conditioned upon other investors' commitment of additional funds, the date of DRS35450-MCfa-248 Page 11 General Assembly Of North Carolina Session 2025 the investment is the date escrowed funds are transferred to the qualified business venture free of the condition.
For the purpose of this Article, if a taxpayer's investment is placed initially in escrow conditioned upon other investors' commitment of additional funds, the date of Senate Bill 1056-First Edition Page 11 General Assembly Of North Carolina Session 2025 the investment is the date escrowed funds are transferred to the qualified business venture free of the condition.
Failure of a qualified business venture to renew its registration by the applicable deadline shall result in revocation of its registration effective as of the next day after the renewal deadline, but shall not result in forfeiture of tax credits previously allowed to taxpayers who invested in the business except as provided in G.S.
Failure of a qualified business venture to renew its registration by the applicable deadline shall result in revocation of its registration effective as of the next dayafter the renewal deadline, but shall not result in forfeiture of tax credits previously allowed to taxpayers who invested in the business except as provided in G.S.
A qualified business venture may apply to have its registration reinstated by the Secretary of State by filing an application for reinstatement, accompanied by the reinstatement application fee and a late filing penalty of one thousand dollars ($1,000), within 30 days after receipt of the revocation noticefromtheSecretary ofState.
A qualified business venture may apply to have its registration reinstated by the Secretary of State by filing an application for reinstatement, accompanied by the reinstatement application fee and a late filing penalty of one thousand dollars ($1,000), within 30 days after receipt of the revocation noticefromtheSecretaryofState.
A business that seeks approval of a new application for registration after its registration has been revoked must also pay apenalty of one thousand dollars ($1,000).
A business that seeks approval of a new application for registration after its registration has been revoked must also paya penaltyof one thousand dollars ($1,000).
Page 12 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 (c) Qualified Grantee Businesses.
Page 12 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 (c) Qualified Grantee Businesses.
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Each application shall be signed by the owners of the business or, in the case of a corporation, by its president, vice-president, treasurer, or secretary.
Each application shall be signed bythe owners of the business or, in the case of a corporation, by its president, vice-president, treasurer, or secretary.
The Secretary ofStateshall not revoketheregistrationof abusiness solely because it ceases business operations for an indefinite period of time, as long as the business renews its registration each year as required under this section.
The Secretary ofStateshall not revoketheregistrationof abusiness solelybecause it ceases business operations for an indefinite period of time, as long as the business renews its registration each year as required under this section.
DRS35450-MCfa-248 Page 13 General Assembly Of North Carolina Session 2025 (g) Report by Secretary of State.
Senate Bill 1056-First Edition Page 13 General Assembly Of North Carolina Session 2025 (g) Report by Secretary of State.
For the purpose of this section, a taxpayer participates in the operation of a qualifiedan eligible business if the taxpayer, the taxpayer's spouse, parent, sibling, or child, or an employee of any of these individuals or of a business controlled by any of these individuals, provides services of any nature to the qualified eligible business for compensation, whether as an employee, a contractor, orotherwise.However,apersonwhoprovidesservicestoaqualifiedaneligiblebusiness,whether as an officer, a member of the board of directors, or otherwise does not participate in its operation if the person receives as compensation only reasonable reimbursement of expenses incurred in providing the services, participation in a stock option or stock bonus plan, or both.
For the purpose of this section, a taxpayer participates in the operation of a qualifiedan eligible business if the taxpayer, the taxpayer's spouse, parent, sibling, or child, or an employee of any of these individuals or of a business controlled byany of these individuals, provides services of any nature to the qualified eligible business for compensation, whether as an employee, a contractor, orotherwise.However,apersonwhoprovidesservicestoaqualifiedaneligiblebusiness,whether as an officer, a member of the board of directors, or otherwise does not participate in its operation if the person receives as compensation only reasonable reimbursement of expenses incurred in providing the services, participation in a stock option or stock bonus plan, or both.
In addition, if the redemption Page 14 DRS35450-MCfa-248 General Assembly Of North Carolina Session 2025 amount is less than the amount invested by the taxpayer in the securities to which the redemption is attributable, the amount of the credit that is forfeited is further reduced by multiplying it by a fraction whose numerator equals the redemption amount and whose denominator equals the aggregate amount invested by the taxpayer in the securities involved in the redemption.
In addition, if the redemption Page 14 Senate Bill 1056-First Edition General Assembly Of North Carolina Session 2025 amount is less than the amount invested bythe taxpayer in the securities to which the redemption is attributable, the amount of the credit that is forfeited is further reduced by multiplying it by a fraction whose numerator equals the redemption amount and whose denominator equals the aggregate amount invested bythe taxpayer in the securities involved in the redemption.
– If any provision of this act or its application is held invalid, the invalidity does not affect other provisions or applications of this act that can be given effect without the invalid provisions or application, and to this end the provisions of this act are severable.
– If any provision of this act or its application is held invalid, the invaliditydoes not affect other provisions or applications of this act that can be given effect without the invalid provisions or application, and to this end the provisions of this act are severable.
DRS35450-MCfa-248 Page 15
Senate Bill 1056-First Edition Page 15
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How this bill changes current law

7 changes Share ↗

Compared against the N.C. General Statutes as published AI-generated reading aid — verify against the official bill.

The bill establishes a Small Business Capital Access Program within the existing framework of Chapter 143B of the North Carolina General Statutes.

  • N.C.G.S. § 143B-271.113

    § 143B-271.113. Small Business Capital Access Act.

    This section introduces the Small Business Capital Access Act.

  • N.C.G.S. § 143B-271.113

    There is established within the Department of Commerce the Office of Small Business Capital Access.

    This creates a new Office within the Department of Commerce to oversee small business capital access initiatives.

  • N.C.G.S. § 143B-271.113

    The North Carolina Small Business Capital Access Program includes the following components: ...

    This establishes a new program aimed at increasing access to capital for small businesses.

  • N.C.G.S. § 143B-271.113

    The Small Business Loan Guarantee Program to increase lending to small businesses and qualifying businesses by reducing risk for private lenders.

    This creates a loan guarantee program to assist small businesses in securing financing.

  • N.C.G.S. § 143B-271.113

    The North Carolina Qualifying Business Growth Fund shall function to provide equity and near-equity capital to growth-stage qualifying businesses.

    This establishes a fund specifically to support growth-stage businesses with capital.

  • N.C.G.S. § 143B-271.113

    The CDFI Support Initiative to strengthen the capacity of Community Development Financial Institutions serving North Carolina communities.

    This initiative supports community financial institutions to enhance their lending capacity.

  • N.C.G.S. § 143B-271.113

    The Small Business Technical Assistance Network to ensure businesses receiving capital are prepared to use it effectively.

    This network provides technical support to businesses to help them effectively utilize capital.

Action History

  1. Withdrawn From Com

  2. Re-ref Com On Appropriations/Base Budget

  3. Passed 1st Reading

  4. Ref To Com On Rules and Operations of the Senate

  5. Filed

Sponsors

Sponsorship breakdown

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2 sponsors · 6 co-sponsors · 171 not signed on

Sponsors (2)

Co-sponsors (6)

Not signed on (171)

171 members have not signed on to this bill.

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"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Subjects

taxation finance labor
Cross-referencing the record. Reading this bill against every other bill in the corpus by meaning, not keywords. Only the first open is slow. It’s instant for you after this. Matching · Ranking · Engrossing

Frequently asked questions

Who sponsors SB 1056?
SB 1056 is sponsored by Joyce Waddell (Democratic), Caleb Theodros (Democratic), Mujtaba A. Mohammed (Democratic), Val Applewhite (Democratic), DeAndrea Salvador (Democratic), Sydney Batch (Democratic), Michael Garrett (Democratic), and Kandie D. Smith (Democratic).
What is the current status of SB 1056?
This bill is in committee in the Senate. Introduced April 30, 2026. It must pass committee before a floor vote.
Where can I track SB 1056?
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