ATLANTA --- An incubator for biotech startups aimed at spurring rural jobs got a new lease on life Thursday when the Senate sent the governor a bill that would allow the Georgia Medical Center Authority in Augusta to establish a revolving-loan fund, accept stock and create subsidiaries.

The spin-offs could apply for grants not eligible to the authority now as a government entity, and the stock in the startups could provide a long-term funding stream if any of the companies hit it big. The loan fund could be a way to help the startups grow enough to attract major investors.

The authority, though based in Augusta to benefit from innovations developed at the Medical College of Georgia, has a mandate to help economic growth across the state.

Sen. Seth Harp, R-Midland, told his colleagues the revolving loans would be funded initially through the sale of bonds, while assuring them the state's tight budget wouldn't be affected.

"The bonds they are talking about do not, do not, create an obligation for the state," he said. "The state is in no way responsible for these bonds."

The proposal, House Bill 93, passed unanimously Thursday, as it did in the House on March 10.

It now goes to Gov. Sonny Perdue's desk for his signature. Mr. Perdue hasn't said whether he will sign it.

He recommended eliminating the authority's budget in the fiscal year that begins July 1, though the House added a quarter of it back. The Senate hasn't released its version yet.

Rep. Barbara Sims, R-Augusta, sponsored the bill and was on hand to watch it pass the Senate.

She said regardless of whether the Senate cuts as much from the authority's budget as Mr. Perdue recommends, the ability to use other financing strategies through her bill will preserve its lifeline, she said.

"It can survive now," Ms. Sims said.