MD
Maryland House Bill HB1451

Maryland 2022 Regular Session

Maryland House Bill HB1451 Compare Versions

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1- LAWRENCE J. HOGAN, JR., Governor Ch. 380
21
3-– 1 –
4-Chapter 380
5-(House Bill 1451)
62
7-AN ACT concerning
3+EXPLANATION: CAPITALS INDICATE MAT TER ADDED TO EXISTIN G LAW.
4+ [Brackets] indicate matter deleted from existing law.
5+ Underlining indicates amendments to bill.
6+ Strike out indicates matter stricken from the bill by amendment or deleted from the law by
7+amendment.
8+ Italics indicate opposite chamber/conference committee amendments.
9+ *hb1451*
810
9-Housing and Community Development – Business Projects and the Business
10-Development Program – Financial Assistance
11+HOUSE BILL 1451
12+C9 (2lr3181)
13+ENROLLED BILL
14+— Appropriations/Education, Health, and Environmental Affairs —
15+Introduced by Delegate McIntosh
1116
12-FOR the purpose of authorizing the Community Development Administration to provide
13-certain forms of financial assistance for business projects; altering the requirements
14-for a project to qualify as a certain business project; authorizing the Department of
15-Housing and Community Development to provide certain forms of financial
16-assistance under the Business Development Program; authorizing the Department
17-to sell or assign a certain equity interest without approval or execution by the Board
18-of Public Works; and generally relating to financial assistance provided by the
19-Community Development Administration and the Department of Housing and
20-Community Development.
17+Read and Examined by Proofreaders:
2118
22-BY repealing and reenacting, with amendments,
23- Article – Housing and Community Development
24-Section 4–223, 6–305, 6–308, and 6–310
25- Annotated Code of Maryland
26- (2019 Replacement Volume and 2021 Supplement)
19+_______________________________________________
20+Proofreader.
21+_______________________________________________
22+Proofreader.
2723
28-BY repealing and reenacting, with amendments,
29- Article – Housing and Community Development
30-Section 4–223
31- Annotated Code of Maryland
32- (2019 Replacement Volume and 2021 Supplement)
33- (As enacted by Section 1 of this Act)
24+Sealed with the Great Seal and presented to the Governor, for his approval this
3425
35- SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
36-That the Laws of Maryland read as follows:
26+_______ day of _______________ at __ ______________________ o’clock, ________M.
3727
38-Article – Housing and Community Development
28+______________________________________________
29+Speaker.
3930
40-4–223.
31+CHAPTER ______
4132
42- (a) A project qualifies as a business project if the project is:
33+AN ACT concerning 1
4334
44- (1) located in:
35+Housing and Community Development – Business Projects and the Business 2
36+Development Program – Financial Assistance 3
4537
46- (i) an area designated as a priority funding area under § 5–7B–02
47-of the State Finance and Procurement Article; or
48- Ch. 380 2022 LAWS OF MARYLAND
38+FOR the purpose of authorizing the Community Development Administration to provide 4
39+certain forms of financial assistance for business projects; altering the requirements 5
40+for a project to qualify as a certain business project; authorizing the Department of 6
41+Housing and Community Development to provide certain forms of financial 7
42+assistance under the Business Development Program; authorizing the Department 8
43+to sell or assign a certain equity interest without approval or execution by the Board 9
44+of Public Works; and generally relating to financial assistance provided by the 10
45+Community Development Administration and the Department of Housing and 11
46+Community Development. 12
4947
50-– 2 –
51- (ii) a qualified opportunity zone designated under § 1400Z–1 of the
52-Internal Revenue Code in Allegany County, BALTIMORE CITY, BALTIMORE COUNTY,
53-CHARLES COUNTY, Garrett County, HOWARD COUNTY, MONTGOMERY COUNTY,
54-PRINCE GEORGE’S COUNTY, Somerset County, or Wicomico County; and
48+BY repealing and reenacting, with amendments, 13
49+ Article – Housing and Community Development 14 2 HOUSE BILL 1451
5550
56- (2) (i) acquired, owned, developed, constructed, reconstructed,
57-rehabilitated, or improved by a person or an entity for the purposes of carrying on a
58-business whether or not for profit; or
5951
60- (ii) eligible for funding from the Neighborhood Business
61-Development Fund under § 6–310 of this article.
52+Section 4–223, 6–305, 6–308, and 6–310 1
53+ Annotated Code of Maryland 2
54+ (2019 Replacement Volume and 2021 Supplement) 3
6255
63- (b) Repayment of principal and interest for a business project may be secured by:
56+BY repealing and reenacting, with amendments, 4
57+ Article – Housing and Community Development 5
58+Section 4–223 6
59+ Annotated Code of Maryland 7
60+ (2019 Replacement Volume and 2021 Supplement) 8
61+ (As enacted by Section 1 of this Act) 9
6462
65- (1) real property;
63+ SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 10
64+That the Laws of Maryland read as follows: 11
6665
67- (2) personal property;
66+Article – Housing and Community Development 12
6867
69- (3) bank accounts;
68+4–223. 13
7069
71- (4) certificates of deposit, stocks, and bonds;
70+ (a) A project qualifies as a business project if the project is: 14
7271
73- (5) credit enhancement, assurance, or guaranty; or
72+ (1) located in: 15
7473
75- (6) any other collateral acceptable to the Administration.
74+ (i) an area designated as a priority funding area under § 5–7B–02 16
75+of the State Finance and Procurement Article; or 17
7676
77- (C) FINANCIAL ASSISTANCE FOR A BUSINESS PROJE CT MAY BE PROVIDED
78-AS:
77+ (ii) a qualified opportunity zone designated under § 1400Z–1 of the 18
78+Internal Revenue Code in Allegany County, BALTIMORE CITY, BALTIMORE COUNTY, 19
79+CHARLES COUNTY, Garrett County, HOWARD COUNTY, MONTGOMERY COUNTY, 20
80+PRINCE GEORGE’S COUNTY, Somerset County, or Wicomico County; and 21
7981
80- (1) A LOAN;
82+ (2) (i) acquired, owned, developed, constructed, reconstructed, 22
83+rehabilitated, or improved by a person or an entity for the purposes of carrying on a 23
84+business whether or not for profit; or 24
8185
82- (2) A REDUCTION IN THE P RINCIPAL OBLIGATION OF OR INTEREST
83-RATE ON A LOAN OR PO RTION OF A LOAN;
86+ (ii) eligible for funding from the Neighborhood Business 25
87+Development Fund under § 6–310 of this article. 26
8488
85- (3) A PREPAYMENT OF INTE REST ON A SUBORDINAT E OR SUPERIOR
86-LOAN OR PORTION OF A LOAN;
89+ (b) Repayment of principal and interest for a business project may be secured by: 27
8790
88- (4) AN ASSURANCE ;
91+ (1) real property; 28
8992
90- (5) A GUARANTEE OR OTHER FORM OF CREDIT ENHAN CEMENT; OR
93+ (2) personal property; 29
9194
92- (6) A PROMISSORY NOTE TH AT MAY BE CONVERTED TO AN EQUITY
93-OWNERSHIP INTEREST A ND LIQUIDATED AT THE EARLIEST OPPORTUNITY TO
94-REALIZE THE HIGHEST MARKET VALUE FOR THE ADMINISTRATION .
95- LAWRENCE J. HOGAN, JR., Governor Ch. 380
95+ (3) bank accounts; 30
9696
97-– 3 –
98-6–305.
97+ (4) certificates of deposit, stocks, and bonds; 31 HOUSE BILL 1451 3
9998
100- (a) (1) A small business, nonprofit organization, or microenterprise may apply
101-for financial assistance under the Business Development Program.
10299
103- (2) The Department shall review each application.
104100
105- (b) An applicant may qualify for financial assistance for a project in a priority
106-funding area or an eligible opportunity zone if the application demonstrates that:
101+ (5) credit enhancement, assurance, or guaranty; or 1
107102
108- (1) the financial assistance from the Fund is the minimum amount
109-necessary to make the project financially feasible;
103+ (6) any other collateral acceptable to the Administration. 2
110104
111- (2) the project is ready to proceed when it receives financial assistance from
112-the Business Development Program; and
105+ (C) FINANCIAL ASSISTANCE FOR A BUSINESS PROJE CT MAY BE PROVIDED 3
106+AS: 4
113107
114- (3) any food desert project includes a plan to seek out sources of
115-Maryland–grown produce and Maryland produced foods.
108+ (1) A LOAN; 5
116109
117- (c) (1) The Department shall provide written notice to the political subdivision
118-in which the proposed project is located.
110+ (2) A REDUCTION IN THE P RINCIPAL OBLIGATION OF OR INTEREST 6
111+RATE ON A LOAN OR PORTION OF A LOAN ; 7
119112
120- (2) Except as provided in paragraph (3) of this subsection, the Department
121-may not approve an application unless the political subdivision in which the proposed
122-project is located approves the application by:
113+ (3) A PREPAYMENT OF INTE REST ON A SUBORDINAT E OR SUPERIOR 8
114+LOAN OR PORTION OF A LOAN; 9
123115
124- (i) resolution; or
116+ (4) AN ASSURANCE ; 10
125117
126- (ii) letter, delivered to the Department by the political subdivision’s
127-authorized designee, expressing support of the plan or project.
118+ (5) A GUARANTEE OR OTHER FORM OF CREDIT ENHAN CEMENT; OR 11
128119
129- (3) If the Department does not receive notice of approval or denial of an
130-application from the affected jurisdictions within 45 days after notice of the proposed
131-project is given in accordance with paragraph (1) of this subsection, the Department may
132-approve the application.
120+ (6) A PROMISSORY NOTE TH AT MAY BE CONVERTED TO AN EQUITY 12
121+OWNERSHIP INTEREST AND LIQ UIDATED AT THE EARLI EST OPPORTUNITY TO 13
122+REALIZE THE HIGHEST MARKET VALUE FOR THE ADMINISTRATION . 14
133123
134- (d) Financial assistance under the Business Development Program may be
135-provided to a small business, nonprofit organization, or microenterprise as:
124+6–305. 15
136125
137- (1) a grant;
126+ (a) (1) A small business, nonprofit organization, or microenterprise may apply 16
127+for financial assistance under the Business Development Program. 17
138128
139- (2) a loan;
129+ (2) The Department shall review each application. 18
140130
141- (3) a reduction in the principal obligation of or interest rate on a loan or
142-portion of a loan;
143- Ch. 380 2022 LAWS OF MARYLAND
131+ (b) An applicant may qualify for financial assistance for a project in a priority 19
132+funding area or an eligible opportunity zone if the application demonstrates that: 20
144133
145-– 4 –
146- (4) a prepayment of interest on a subordinate or superior loan or portion of
147-a loan;
134+ (1) the financial assistance from the Fund is the minimum amount 21
135+necessary to make the project financially feasible; 22
148136
149- (5) an assurance;
137+ (2) the project is ready to proceed when it receives financial assistance from 23
138+the Business Development Program; and 24
150139
151- (6) a guarantee; [or]
140+ (3) any food desert project includes a plan to seek out sources of 25
141+Maryland–grown produce and Maryland produced foods. 26
152142
153- (7) any other form of credit enhancement; OR
143+ (c) (1) The Department shall provide written notice to the political subdivision 27
144+in which the proposed project is located. 28
145+ 4 HOUSE BILL 1451
154146
155- (8) A PROMISSORY NOTE TH AT MAY BE CONVERTED TO AN EQUITY
156-OWNERSHIP INTEREST A ND LIQUIDATED AT THE EARLIEST OPPORTUNITY TO
157-REALIZE THE HIGHEST MARKET VALUE FOR THE DEPARTMENT .
158147
159- (e) (1) The Department shall reserve at least the lesser of $5,000,000 or the
160-annual capital appropriation for the Fund to make financial assistance available to projects
161-located in sustainable communities.
148+ (2) Except as provided in paragraph (3) of this subsection, the Department 1
149+may not approve an application unless the political subdivision in which the proposed 2
150+project is located approves the application by: 3
162151
163- (2) The Department may meet the funding obligations for sustainable
164-communities and food deserts by using any financial assistance available to the
165-Department that is authorized to be used for these projects.
152+ (i) resolution; or 4
166153
167-6–308.
154+ (ii) letter, delivered to the Department by the political subdivision’s 5
155+authorized designee, expressing support of the plan or project. 6
168156
169- (a) The Department shall:
157+ (3) If the Department does not receive notice of approval or denial of an 7
158+application from the affected jurisdictions within 45 days after notice of the proposed 8
159+project is given in accordance with paragraph (1) of this subsection, the Department may 9
160+approve the application. 10
170161
171- (1) administer the Business Development Program;
162+ (d) Financial assistance under the Business Development Program may be 11
163+provided to a small business, nonprofit organization, or microenterprise as: 12
172164
173- (2) adopt regulations to carry out the Business Development Program,
174-including a process to designate an area as a food desert under subsection (c) of this section;
175-and
165+ (1) a grant; 13
176166
177- (3) make a reasonable, good faith effort to make 25% of the Business
178-Development Program loans and grants to microenterprises.
167+ (2) a loan; 14
179168
180- (b) The Department may:
169+ (3) a reduction in the principal obligation of or interest rate on a loan or 15
170+portion of a loan; 16
181171
182- (1) sell, assign, or otherwise dispose of a Program loan or revenue from a
183-loan on terms and conditions acceptable to the Department, including selling loans at a
184-discount, if the maximum sale proceeds in any fiscal year do not exceed limits that the
185-Department sets by regulation;
172+ (4) a prepayment of interest on a subordinate or superior loan or portion of 17
173+a loan; 18
186174
187- (2) apply the proceeds received from a sale, assignment, or other
188-disposition under item (1) of this subsection to the Fund; [and]
175+ (5) an assurance; 19
189176
190- (3) pledge a Program loan as security for any:
191- LAWRENCE J. HOGAN, JR., Governor Ch. 380
177+ (6) a guarantee; [or] 20
192178
193-– 5 –
194- (i) business project loan, bond, or security that is issued, made, or
195-purchased by the Community Development Administration under Title 4 of this article; or
179+ (7) any other form of credit enhancement; OR 21
196180
197- (ii) insurance, guaranty, or credit enhancement on a Program loan
198-or business project under § 4–223 of this article; AND
181+ (8) A PROMISSORY NOTE TH AT MAY BE CONVERTED TO AN EQUITY 22
182+OWNERSHIP INTEREST A ND LIQUIDATED AT THE EARLIEST OPPORTUNITY TO 23
183+REALIZE THE HIGHEST MARKET VALUE FOR THE DEPARTMENT . 24
199184
200- (4) WITHOUT APPROVAL OR EXECUTION BY THE BOARD OF PUBLIC
201-WORKS, SELL OR ASSIGN ANY E QUITY INTEREST ACQUI RED UNDER § 6–305(D) OF
202-THIS SUBTITLE.
185+ (e) (1) The Department shall reserve at least the lesser of $5,000,000 or the 25
186+annual capital appropriation for the Fund to make financial assistance available to projects 26
187+located in sustainable communities. 27
203188
204- (c) The Secretary, on the recommendation of the Interagency Food Desert
205-Advisory Committee established under § 6–308.2 of this subtitle, may designate an area as
206-a food desert after considering the following factors:
189+ (2) The Department may meet the funding obligations for sustainable 28
190+communities and food deserts by using any financial assistance available to the 29
191+Department that is authorized to be used for these projects. 30
207192
208- (1) availability of fresh fruit, vegetables, and other healthy foods in the
209-area;
193+6–308. 31 HOUSE BILL 1451 5
210194
211- (2) income levels of local residents;
212195
213- (3) transportation needs of local residents and the availability of public
214-transportation;
215196
216- (4) comments from local governments; and
197+ (a) The Department shall: 1
217198
218- (5) any other factors that the Department considers relevant.
199+ (1) administer the Business Development Program; 2
219200
220-6–310.
201+ (2) adopt regulations to carry out the Business Development Program, 3
202+including a process to designate an area as a food desert under subsection (c) of this section; 4
203+and 5
221204
222- (a) There is a Neighborhood Business Development Fund.
205+ (3) make a reasonable, good faith effort to make 25% of the Business 6
206+Development Program loans and grants to microenterprises. 7
223207
224- (b) The Department shall use the Fund to:
208+ (b) The Department may: 8
225209
226- (1) operate and pay expenses of the Program; and
210+ (1) sell, assign, or otherwise dispose of a Program loan or revenue from a 9
211+loan on terms and conditions acceptable to the Department, including selling loans at a 10
212+discount, if the maximum sale proceeds in any fiscal year do not exceed limits that the 11
213+Department sets by regulation; 12
227214
228- (2) provide financial assistance to small businesses, nonprofit
229-organizations, and microenterprises.
215+ (2) apply the proceeds received from a sale, assignment, or other 13
216+disposition under item (1) of this subsection to the Fund; [and] 14
230217
231- (c) (1) The Department shall administer the Fund.
218+ (3) pledge a Program loan as security for any: 15
232219
233- (2) The State Treasurer shall hold and the Comptroller shall account for
234-the Fund.
220+ (i) business project loan, bond, or security that is issued, made, or 16
221+purchased by the Community Development Administration under Title 4 of this article; or 17
235222
236- (d) The Fund is a continuing, nonlapsing special fund that is not subject to §
237-7–302 of the State Finance and Procurement Article.
223+ (ii) insurance, guaranty, or credit enhancement on a Program loan 18
224+or business project under § 4–223 of this article; AND 19
238225
239- (e) The Fund consists of: Ch. 380 2022 LAWS OF MARYLAND
226+ (4) WITHOUT APPROVAL OR EXECUTION BY THE BOARD OF PUBLIC 20
227+WORKS, SELL OR ASSIGN ANY E QUITY INTEREST ACQUI RED UNDER § 6–305(D) OF 21
228+THIS SUBTITLE. 22
240229
241-– 6 –
230+ (c) The Secretary, on the recommendation of the Interagency Food Desert 23
231+Advisory Committee established under § 6–308.2 of this subtitle, may designate an area as 24
232+a food desert after considering the following factors: 25
242233
243- (1) money appropriated in the State budget for the Program;
234+ (1) availability of fresh fruit, vegetables, and other healthy foods in the 26
235+area; 27
244236
245- (2) any repayment or prepayment of financial assistance under this
246-subtitle or under the State Action Loans for Targeted Areas Program under former Article
247-83B, Title 4, Subtitle 6, of the Code;
237+ (2) income levels of local residents; 28
248238
249- (3) money transferred to the Fund from any other fund as provided in this
250-article;
239+ (3) transportation needs of local residents and the availability of public 29
240+transportation; 30
241+ 6 HOUSE BILL 1451
251242
252- (4) money received from the sale, assignment, or other disposition of
253-Program loans AND EQUITY INTERESTS ;
254243
255- (5) other money received by the Program under this subtitle or from the
256-Community Development Administration under Subtitle 2 of this title; and
244+ (4) comments from local governments; and 1
257245
258- (6) investment earnings of the Fund.
246+ (5) any other factors that the Department considers relevant. 2
259247
260- (f) The Fund shall be invested in the same way as other State money.
248+6–310. 3
261249
262- (g) With the approval of the Legislative Policy Committee and, subject to § 7–209
263-of the State Finance and Procurement Article, after the first 8 months of a fiscal year, the
264-Department may transfer unencumbered money in the Fund to:
250+ (a) There is a Neighborhood Business Development Fund. 4
265251
266- (1) any other fund established under this title;
252+ (b) The Department shall use the Fund to: 5
267253
268- (2) the Community Development Administration to provide financial
269-assistance to business projects; and
254+ (1) operate and pay expenses of the Program; and 6
270255
271- (3) the Maryland Housing Fund under Title 3 of this article to provide
272-insurance, credit enhancement, or a guaranty on:
256+ (2) provide financial assistance to small businesses, nonprofit 7
257+organizations, and microenterprises. 8
273258
274- (i) a Program loan; or
259+ (c) (1) The Department shall administer the Fund. 9
275260
276- (ii) a business project loan, bond, or security that is issued, made, or
277-purchased by the Community Development Administration under Title 4 of this article.
261+ (2) The State Treasurer shall hold and the Comptroller shall account for 10
262+the Fund. 11
278263
279- SECTION 2. AND BE IT FURTHER ENACTE D, That the Laws of Maryland read
280-as follows:
264+ (d) The Fund is a continuing, nonlapsing special fund that is not subject to § 12
265+7–302 of the State Finance and Procurement Article. 13
281266
282-Article – Housing and Community Development
267+ (e) The Fund consists of: 14
283268
284-4–223.
269+ (1) money appropriated in the State budget for the Program; 15
285270
286- (a) A project qualifies as a business project if the project is:
287- LAWRENCE J. HOGAN, JR., Governor Ch. 380
271+ (2) any repayment or prepayment of financial assistance under this 16
272+subtitle or under the State Action Loans for Targeted Areas Program under former Article 17
273+83B, Title 4, Subtitle 6, of the Code; 18
288274
289-– 7 –
290- (1) located in:
275+ (3) money transferred to the Fund from any other fund as provided in this 19
276+article; 20
291277
292- (i) an area designated as a priority funding area under § 5–7B–02
293-of the State Finance and Procurement Article; or
278+ (4) money received from the sale, assignment, or other disposition of 21
279+Program loans AND EQUITY INTERESTS ; 22
294280
295- (ii) a qualified opportunity zone designated under § 1400Z–1 of the
296-Internal Revenue Code in Allegany County, Baltimore City, Baltimore County, Charles
297-County, Garrett County, Howard County, Montgomery County, Prince George’s County,
298-Somerset County, or Wicomico County; and
281+ (5) other money received by the Program under this subtitle or from the 23
282+Community Development Administration under Subtitle 2 of this title; and 24
299283
300- (2) (i) acquired, owned, developed, constructed, reconstructed,
301-rehabilitated, or improved by a person or an entity for the purposes of carrying on a
302-business whether or not for profit; or
284+ (6) investment earnings of the Fund. 25
303285
304- (ii) eligible for funding from the Neighborhood Business
305-Development Fund under § 6–310 of this article.
286+ (f) The Fund shall be invested in the same way as other State money. 26
306287
307- (b) Repayment of principal and interest for a business project may be secured by:
288+ (g) With the approval of the Legislative Policy Committee and, subject to § 7–209 27
289+of the State Finance and Procurement Article, after the first 8 months of a fiscal year, the 28
290+Department may transfer unencumbered money in the Fund to: 29 HOUSE BILL 1451 7
308291
309- (1) real property;
310292
311- (2) personal property;
312293
313- (3) bank accounts;
294+ (1) any other fund established under this title; 1
314295
315- (4) certificates of deposit, stocks, and bonds;
296+ (2) the Community Development Administration to provide financial 2
297+assistance to business projects; and 3
316298
317- (5) credit enhancement, assurance, or guaranty; or
299+ (3) the Maryland Housing Fund under Title 3 of this article to provide 4
300+insurance, credit enhancement, or a guaranty on: 5
318301
319- (6) any other collateral acceptable to the Administration.
302+ (i) a Program loan; or 6
320303
321- (c) Financial assistance for a business project may be provided as:
304+ (ii) a business project loan, bond, or security that is issued, made, or 7
305+purchased by the Community Development Administration under Title 4 of this article. 8
322306
323- (1) a loan;
307+ SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read 9
308+as follows: 10
324309
325- (2) a reduction in the principal obligation of or interest rate on a loan or
326-portion of a loan;
310+Article – Housing and Community Development 11
327311
328- (3) a prepayment of interest on a subordinate or superior loan or portion of
329-a loan;
312+4–223. 12
330313
331- (4) an assurance; OR
314+ (a) A project qualifies as a business project if the project is: 13
332315
333- (5) a guarantee or other form of credit enhancement[; or
334- Ch. 380 2022 LAWS OF MARYLAND
316+ (1) located in: 14
335317
336-– 8 –
337- (6) a promissory note that may be converted to an equity ownership
338-interest and liquidated at the earliest opportunity to realize the highest market value for
339-the administration].
318+ (i) an area designated as a priority funding area under § 5–7B–02 15
319+of the State Finance and Procurement Article; or 16
340320
341- SECTION 3. AND BE IT FURTHER ENACTED, Tha t Section 2 of this Act shall take
342-effect July 1, 2026.
321+ (ii) a qualified opportunity zone designated under § 1400Z–1 of the 17
322+Internal Revenue Code in Allegany County, Baltimore City, Baltimore County, Charles 18
323+County, Garrett County, Howard County, Montgomery County, Prince George’s County, 19
324+Somerset County, or Wicomico County; and 20
343325
344- SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section
345-3 of this Act, this Act shall take effect July 1, 2022.
326+ (2) (i) acquired, owned, developed, constructed, reconstructed, 21
327+rehabilitated, or improved by a person or an entity for the purposes of carrying on a 22
328+business whether or not for profit; or 23
346329
347-Approved by the Governor, May 16, 2022.
330+ (ii) eligible for funding from the Neighborhood Business 24
331+Development Fund under § 6–310 of this article. 25
332+
333+ (b) Repayment of principal and interest for a business project may be secured by: 26
334+
335+ (1) real property; 27
336+
337+ (2) personal property; 28
338+
339+ (3) bank accounts; 29 8 HOUSE BILL 1451
340+
341+
342+
343+ (4) certificates of deposit, stocks, and bonds; 1
344+
345+ (5) credit enhancement, assurance, or guaranty; or 2
346+
347+ (6) any other collateral acceptable to the Administration. 3
348+
349+ (c) Financial assistance for a business project may be provided as: 4
350+
351+ (1) a loan; 5
352+
353+ (2) a reduction in the principal obligation of or interest rate on a loan or 6
354+portion of a loan; 7
355+
356+ (3) a prepayment of interest on a subordinate or superior loan or portion of 8
357+a loan; 9
358+
359+ (4) an assurance; OR 10
360+
361+ (5) a guarantee or other form of credit enhancement[; or 11
362+
363+ (6) a promissory note that may be converted to an equity ownership 12
364+interest and liquidated at the earliest opportunity to realize the highest market value for 13
365+the administration]. 14
366+
367+ SECTION 3. AND BE IT FURTHER ENACTED, That Section 2 of this Act shall take 15
368+effect July 1, 2026. 16
369+
370+ SECTION 4. AND BE IT FURTHER ENACTED, That, except as provided in Section 17
371+3 of this Act, this Act shall take effect July 1, 2022. 18
372+
373+
374+
375+
376+Approved:
377+________________________________________________________________________________
378+ Governor.
379+________________________________________________________________________________
380+ Speaker of the House of Delegates.
381+________________________________________________________________________________
382+ President of the Senate.