LAWRENCE J. HOGAN, JR., Governor Ch. 384
– 1 –
Chapter 384
(Senate Bill 826)
AN ACT concerning
Economic Development – Maryland Watermen’s Microloan
Program – Establishment
FOR the purpose of establishing the Maryland Watermen’s Microloan Program in the
Maryland Agricultural and Resource–Based Industry Development Corporation;
providing for certain loans to eligible watermen and seafood processing businesses
under the Program; and generally relating to the Maryland Watermen’s Microloan
Program.
BY renumbering
Article – Economic Development
Section 10–526 and 10–527, respectively
to be Section 10–527 and 10–528, respectively
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
BY adding to
Article – Economic Development
Section 10–526
Annotated Code of Maryland
(2018 Replacement Volume and 2021 Supplement)
Preamble
WHEREAS, For generations Maryland watermen have labored to harvest delicious
fish and shellfish products from the Chesapeake Bay for the benefit of consumers in this
State and beyond; and
WHEREAS, Maryland’s iconic seafood industry has contributed greatly to
Maryland’s economy and stature as a wonderful tourist destination and a great place to
live; and
WHEREAS, Maryland watermen have historically had a difficult time accessing
affordable commercial capital and credit; and
WHEREAS, Maryland’s generational watermen have faced many challenges in
recent years and were especially hard–hit during the COVID–19 pandemic due to loss of
markets; now, therefore,
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That Section(s) 10–526 and 10–527, respectively, of Article – Economic Development of the Ch. 384 2022 LAWS OF MARYLAND
– 2 –
Annotated Code of Maryland be renumbered to be Section(s) 10–527 and 10–528,
respectively.
SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland read
as follows:
Article – Economic Development
10–526.
(A) (1) IN THIS SECTION THE F OLLOWING WORDS HAVE THE MEANINGS
INDICATED.
(2) “BEGINNER WATERMAN ” MEANS AN INDIVIDUAL WHO HAS:
(I) A TIDAL FISH LICENSE UNDER § 4–701 OF THE NATURAL
RESOURCES ARTICLE; AND
(II) AT LEAST 2 YEARS AND NOT MORE T HAN 10 YEARS OF
EXPERIENCE IN COMMER CIAL SEAFOOD HARVEST ING.
(3) “GENERATIONAL WATERMAN ” MEANS AN INDIVIDUAL WHO:
(I) HAS A TIDAL FISH LIC ENSE UNDER § 4–701 OF THE
NATURAL RESOURCES ARTICLE; AND
(II) CAN DEMONSTRATE , THROUGH THE SUBMISSI ON OF THE
TWO MOST RECENT FEDE RAL INCOME TAX RETUR NS AND OTHER SUPPORT ING
DOCUMENTS , THAT AT LEAST 50% OF THE INDIVIDUAL ’S ANNUAL INCOME IS
DERIVED FROM COMMERC IAL SEAFOOD HARVESTI NG.
(4) “PROGRAM” MEANS THE MARYLAND WATERMEN’S MICROLOAN
PROGRAM.
(5) “QUALIFIED COMMERCIAL FISHERMAN” INCLUDES:
(I) A BEGINNER WATERMAN ; AND
(II) A GENERATIONAL WATER MAN.
(B) THERE IS A MARYLAND WATERMEN’S MICROLOAN PROGRAM IN THE
CORPORATION .
LAWRENCE J. HOGAN, JR., Governor Ch. 384
– 3 –
(C) THE PURPOSE OF THE PROGRAM IS TO PROVIDE LOANS TO QUALIFIED
COMMERCIAL FISHERMEN TO CONTINUE COMMERCI AL OPERATIONS IN THE STATE,
INCLUDING FOR PURCHASING :
(1) BOATS;
(2) MECHANICAL EQUIPMENT ;
(3) FISHING GEAR;
(4) FISHING QUOTA ; AND
(5) ANY OTHER ITEM USED IN COMMERCIAL SEAFOO D HARVESTING .
(D) THE CORPORATION SHALL IMP LEMENT AND ADMINISTE R THE
PROGRAM IN ACCORDANCE WITH THIS SECTION.
(E) (1) THROUGH JUNE 30, 2025, ONLY GENERATIONAL WA TERMEN ARE
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM.
(2) STARTING JULY 1, 2025, THE FOLLOWING PERSON S ARE
ELIGIBLE TO RECEIVE A LOAN UNDER THE PROGRAM:
(I) GENERATIONAL WATERME N;
(II) BEGINNER WATERMEN ; AND
(III) SEAFOOD PROCESSING B USINESSES.
(F) (1) FOR LOANS MADE UNDER THE PROGRAM, THE CORPORATION
SHALL DETERMINE :
(I) THE ELIGIBILITY OF A N APPLICANT;
(II) THE AMOUNT OF LOAN T O BE GIVEN TO A BORR OWER;
(III) THE TERMS AND CONDIT IONS OF A LOAN CONTR ACT; AND
(IV) THE AMOUNT OF DEBT F ORGIVENESS THAT MAY BE
PROVIDED TO A BORROW ER FOR LOAN REPAYMEN T PERFORMANCE .
(2) A LOAN MADE UNDER THE PROGRAM SHALL BE AT L EAST $7,000
AND NOT MORE THAN $15,000.
Ch. 384 2022 LAWS OF MARYLAND
– 4 –
(3) A BORROWER UNDER THE PROGRAM MAY NOT HAVE MORE THAN
ONE OUTSTANDING LOAN FROM THE PROGRAM DURING ANY PE RIOD OF TIME.
(G) (1) FOR EACH OF FISCAL YEARS 2024 AND 2025 THROUGH 2026, THE
GOVERNOR SHALL INCLUD E IN THE ANNUAL STATE BUDGET BILL AN
APPROPRIATION OF $750,000 $500,000 TO THE PROGRAM.
(2) THE APPROPRIATION IN PARAGRAPH (1) OF THIS SUBSECTION
SHALL BE DISTRIBUTED TO A SPECIAL FUND , TO BE USED ONLY TO :
(I) MAKE LOANS UNDER THE PROGRAM; AND
(II) PAY THE COSTS NECESS ARY TO ADMINISTER AN D OPERATE
THE PROGRAM.
SECTION 3. AND BE IT FURTHER ENACTED, That this Act shall take effect
October 1, 2022.
Approved by the Governor, May 16, 2022.