Maryland Senate Bill SB38

Maryland 2023 Regular Session

• Introduced: 1/11/23
• Refer: 1/11/23

Caption

Minority Business Enterprise Procurement Contract Financing

Impact

The bill creates a nonlapsing fund dedicated to financing the program, which will consist of appropriated state funds, a portion of proceeds from legalized sports and event wagering, federal allocations, and repayments from loans. The authority responsible for managing the fund will have the power to provide loans and grants to minority businesses, thereby helping them secure contracts with the state. This initiative is part of a broader effort to ensure equitable opportunities within Maryland's economic development framework.

Summary

Senate Bill 38 establishes the Minority Business Enterprise Procurement Contract Financing Program within the Maryland Small Business Development Financing Authority. The primary goal of the program is to facilitate access to working capital for qualified minority business enterprises, enabling them to participate in and fulfill state procurement contracts successfully. This move is intended to promote economic growth among minority-economics while ensuring that minority-owned businesses are not disadvantaged when competing for state contracts.

Contention

Critics of the bill may argue that while the intent to support minority businesses is commendable, the allocation of state funds for this purpose could strain the budget. Additionally, there could be concerns about the criteria for qualification as a 'minority business enterprise' and whether the program can effectively reach and assist the intended beneficiaries. Moreover, the long-term sustainability of the fund, especially with reliance on external revenue sources, raises questions about the program's viability.