| Old | New | Differences | |
|---|---|---|---|
| 1 | - | WES MOORE, Governor Ch. 4 | |
| 2 | 1 | ||
| 3 | - | – 1 – | |
| 4 | - | Chapter 4 | |
| 5 | - | (Senate Bill 1008) | |
| 6 | 2 | ||
| 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 | + | *sb1008* | |
| 8 | 9 | ||
| 9 | - | Economic Development – Small Business Guaranty Fund – Alterations | |
| 10 | + | SENATE BILL 1008 | |
| 11 | + | C8 5lr3577 | |
| 12 | + | CF HB 601 | |
| 13 | + | By: Senator Hayes | |
| 14 | + | Introduced and read first time: February 1, 2025 | |
| 15 | + | Assigned to: Rules | |
| 16 | + | Re–referred to: Finance, February 10, 2025 | |
| 17 | + | Committee Report: Favorable with amendments | |
| 18 | + | Senate action: Adopted | |
| 19 | + | Read second time: February 25, 2025 | |
| 10 | 20 | ||
| 11 | - | FOR the purpose of providing that authorizing the Maryland Small Business Development | |
| 12 | - | Financing Authority to authorize the provision of a guaranty under the Small | |
| 13 | - | Business Guaranty Fund may be supported by the full faith and credit of the State | |
| 14 | - | of Maryland or approved in a certain other manner; and generally relating to the | |
| 15 | - | Small Business Guaranty Fund. | |
| 21 | + | CHAPTER ______ | |
| 16 | 22 | ||
| 17 | - | BY repealing and reenacting, with amendments, | |
| 18 | - | Article – Economic Development | |
| 19 | - | Section 5–540(a) | |
| 20 | - | Annotated Code of Maryland | |
| 21 | - | (2024 Replacement Volume and 2024 Supplement) | |
| 23 | + | AN ACT concerning 1 | |
| 22 | 24 | ||
| 23 | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, | |
| 24 | - | That the Laws of Maryland read as follows: | |
| 25 | + | Economic Development – Small Business Guaranty Fund – Alterations 2 | |
| 25 | 26 | ||
| 26 | - | Article – Economic Development | |
| 27 | + | FOR the purpose of providing that authorizing the Maryland Small Business Development 3 | |
| 28 | + | Financing Authority to authorize the provision of a guaranty under the Small 4 | |
| 29 | + | Business Guaranty Fund may be supported by the full faith and credit of the State 5 | |
| 30 | + | of Maryland or approved in a certain other manner; and generally relating to the 6 | |
| 31 | + | Small Business Guaranty Fund. 7 | |
| 27 | 32 | ||
| 28 | - | 5–540. | |
| 33 | + | BY repealing and reenacting, with amendments, 8 | |
| 34 | + | Article – Economic Development 9 | |
| 35 | + | Section 5–540(a) 10 | |
| 36 | + | Annotated Code of Maryland 11 | |
| 37 | + | (2024 Replacement Volume and 2024 Supplement) 12 | |
| 29 | 38 | ||
| 30 | - | | |
| 31 | - | of | |
| 39 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 13 | |
| 40 | + | That the Laws of Maryland read as follows: 14 | |
| 32 | 41 | ||
| 33 | - | (i) the applicant meets the requirements under § 5–541 of this | |
| 34 | - | subtitle and has not violated § 5–545 of this subtitle; | |
| 42 | + | Article – Economic Development 15 | |
| 35 | 43 | ||
| 36 | - | (ii) the loan amount is $5,000 or more and the maximum amount | |
| 37 | - | payable by the Authority under the guaranty does not exceed $2,000,000; | |
| 44 | + | 5–540. 16 | |
| 38 | 45 | ||
| 39 | - | (iii) the loan is used for: | |
| 46 | + | (a) (1) The Authority may use the Fund to guarantee up to 80% of the principal 17 | |
| 47 | + | of and interest on a long–term loan made by a financial institution to an applicant only if: 18 | |
| 48 | + | 2 SENATE BILL 1008 | |
| 40 | 49 | ||
| 41 | - | 1. working capital; | |
| 42 | 50 | ||
| 43 | - | 2. refinancing the applicant’s existing debt; | |
| 51 | + | (i) the applicant meets the requirements under § 5–541 of this 1 | |
| 52 | + | subtitle and has not violated § 5–545 of this subtitle; 2 | |
| 44 | 53 | ||
| 45 | - | 3. acquisition and installation of equipment; | |
| 54 | + | (ii) the loan amount is $5,000 or more and the maximum amount 3 | |
| 55 | + | payable by the Authority under the guaranty does not exceed $2,000,000; 4 | |
| 46 | 56 | ||
| 47 | - | 4. making necessary improvements to real property that the | |
| 48 | - | applicant leases or owns in fee simple; or | |
| 49 | - | Ch. 4 2025 LAWS OF MARYLAND | |
| 57 | + | (iii) the loan is used for: 5 | |
| 50 | 58 | ||
| 51 | - | – 2 – | |
| 52 | - | 5. acquiring real property that the applicant will own in fee | |
| 53 | - | simple if the property is to be used in the applicant’s trade or business for which the | |
| 54 | - | guaranty is sought and the financial institution or the Authority places a lien on the | |
| 55 | - | property; | |
| 59 | + | 1. working capital; 6 | |
| 56 | 60 | ||
| 57 | - | (iv) the loan matures within 10 years after the closing date of the | |
| 58 | - | loan; and | |
| 61 | + | 2. refinancing the applicant’s existing debt; 7 | |
| 59 | 62 | ||
| 60 | - | (v) the interest rate does not exceed the monthly weighted average | |
| 61 | - | of the prime lending rate prevailing in Baltimore City on unsecured commercial loans, plus | |
| 62 | - | 2%, as determined by the Authority. | |
| 63 | + | 3. acquisition and installation of equipment; 8 | |
| 63 | 64 | ||
| 64 | - | (2) A GUARANTY PROVIDED UN DER THIS SECTION MAY : | |
| 65 | + | 4. making necessary improvements to real property that the 9 | |
| 66 | + | applicant leases or owns in fee simple; or 10 | |
| 65 | 67 | ||
| 66 | - | (I) BE SUPPORTED BY THE FULL FAITH AND CREDI T OF THE | |
| 67 | - | STATE OF MARYLAND; OR | |
| 68 | + | 5. acquiring real property that the applicant will own in fee 11 | |
| 69 | + | simple if the property is to be used in the applicant’s trade or business for which the 12 | |
| 70 | + | guaranty is sought and the financial institution or the Authority places a lien on the 13 | |
| 71 | + | property; 14 | |
| 68 | 72 | ||
| 69 | - | (II) BE APPROVED IN ONE O F THE FOLLOWING FORM S: | |
| 73 | + | (iv) the loan matures within 10 years after the closing date of the 15 | |
| 74 | + | loan; and 16 | |
| 70 | 75 | ||
| 71 | - | (2) THE AUTHORITY MAY AUTHORI ZE THE PROVISION OF A | |
| 72 | - | GUARANTY UNDER THIS SECTION IN THE FOLLO WING FORMS: | |
| 76 | + | (v) the interest rate does not exceed the monthly weighted average 17 | |
| 77 | + | of the prime lending rate prevailing in Baltimore City on unsecured commercial loans, plus 18 | |
| 78 | + | 2%, as determined by the Authority. 19 | |
| 73 | 79 | ||
| 74 | - | ||
| 80 | + | (2) A GUARANTY PROVIDED UN DER THIS SECTION MAY : 20 | |
| 75 | 81 | ||
| 76 | - | 2. (II) AN OFFICIAL TREASURE R’S CHECK; | |
| 82 | + | (I) BE SUPPORTED BY THE FULL FAITH AND CREDI T OF THE 21 | |
| 83 | + | STATE OF MARYLAND; OR 22 | |
| 77 | 84 | ||
| 78 | - | 3. (III) FUNDS ON DEPOSIT IN AN ESCROW OR OTHER | |
| 79 | - | DEPOSITORY ACCOUNT; OR | |
| 85 | + | (II) BE APPROVED IN ONE OF THE FOLLOWING FOR MS: 23 | |
| 80 | 86 | ||
| 81 | - | 4. (IV) ANY OTHER LEGAL INST RUMENT PROMISING A | |
| 82 | - | FINANCIAL INSTITUTIO N RESTITUTION OR REI MBURSEMENT FOR ITS L OAN LOSSES, | |
| 83 | - | WITHIN THE LIMITS OF THE GUARANTY . | |
| 87 | + | (2) THE AUTHORITY MAY AUTHORI ZE THE PROVISION OF A 24 | |
| 88 | + | GUARANTY UNDER THIS SECTION IN THE FOLLO WING FORMS: 25 | |
| 84 | 89 | ||
| 85 | - | (3) ANY TERMS AND CONDITI ONS GOVERNING THE IN STRUMENTS | |
| 86 | - | DESCRIBED UNDER PARA GRAPH (2)(II) (2) OF THIS SUBSECTION M AY NOT BE SO | |
| 87 | - | ONEROUS AS TO DISCOU RAGE THE FINANCIAL I NSTITUTION FROM OFFE RING THE | |
| 88 | - | LOAN. | |
| 90 | + | 1. (I) AN IRREVOCABLE LETTE R OF CREDIT; 26 | |
| 89 | 91 | ||
| 90 | - | [(2)] (4) (i) The Authority may only approve a guaranty under this | |
| 91 | - | section if the Authority determines that the loan to be guaranteed will have a substantial | |
| 92 | - | economic impact. | |
| 92 | + | 2. (II) AN OFFICIAL TREASURE R’S CHECK; 27 | |
| 93 | 93 | ||
| 94 | - | ( | |
| 95 | - | ||
| 96 | - | | |
| 94 | + | 3. (III) FUNDS ON DEPOSIT IN AN ESCROW OR OTHER 28 | |
| 95 | + | DEPOSITORY ACCOUNT ; OR 29 | |
| 96 | + | SENATE BILL 1008 3 | |
| 97 | 97 | ||
| 98 | - | – 3 – | |
| 99 | - | 1. the amount of the guaranty obligation; | |
| 100 | 98 | ||
| 101 | - | 2. the terms of the loan to be guaranteed; | |
| 99 | + | 4. (IV) ANY OTHER LEGAL INST RUMENT PROMISING A 1 | |
| 100 | + | FINANCIAL INSTITUTIO N RESTITUTION OR REI MBURSEMENT FOR ITS L OAN LOSSES, 2 | |
| 101 | + | WITHIN THE LIMITS OF THE GUARANTY . 3 | |
| 102 | 102 | ||
| 103 | - | 3. the number of new jobs that the loan will create; and | |
| 103 | + | (3) ANY TERMS AND CONDITI ONS GOVERNING THE IN STRUMENTS 4 | |
| 104 | + | DESCRIBED UNDER PARA GRAPH (2)(II) (2) OF THIS SUBSECTION M AY NOT BE SO 5 | |
| 105 | + | ONEROUS AS TO DISCOU RAGE THE FINANCIAL I NSTITUTION FROM OFFE RING THE 6 | |
| 106 | + | LOAN. 7 | |
| 104 | 107 | ||
| 105 | - | 4. any other factor that the Authority considers relevant. | |
| 108 | + | [(2)] (4) (i) The Authority may only approve a guaranty under this 8 | |
| 109 | + | section if the Authority determines that the loan to be guaranteed will have a substantial 9 | |
| 110 | + | economic impact. 10 | |
| 106 | 111 | ||
| 107 | - | | |
| 108 | - | ||
| 112 | + | (ii) To determine the economic impact of a loan, the Authority may 11 | |
| 113 | + | consider: 12 | |
| 109 | 114 | ||
| 110 | - | Approved by the Governor, April 8, 2025. | |
| 115 | + | 1. the amount of the guaranty obligation; 13 | |
| 116 | + | ||
| 117 | + | 2. the terms of the loan to be guaranteed; 14 | |
| 118 | + | ||
| 119 | + | 3. the number of new jobs that the loan will create; and 15 | |
| 120 | + | ||
| 121 | + | 4. any other factor that the Authority considers relevant. 16 | |
| 122 | + | ||
| 123 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect 17 | |
| 124 | + | October 1, 2025. 18 | |
| 125 | + | ||
| 126 | + | ||
| 127 | + | ||
| 128 | + | ||
| 129 | + | Approved: | |
| 130 | + | ________________________________________________________________________________ | |
| 131 | + | Governor. | |
| 132 | + | ________________________________________________________________________________ | |
| 133 | + | President of the Senate. | |
| 134 | + | ________________________________________________________________________________ | |
| 135 | + | Speaker of the House of Delegates. |