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BLAIR LEE III, Acting Governor 2569
Financing Authority
FOR the purpose of creating within the Department of
Economic Economic and Community Development, a Maryland
Small Business Development Financing Authority;
providing for directors, their appointment, terms and
duties; providing for a manager, his appointment and
duties; providing the Authority with the power to make
loans to and guarantee certain loans made to certain
economically or socially disadvantaged businessmen;
limiting these loans and guarantees in certain ways;
providing the Authority with certain related powers;
providing a method of application for businessmen
seeking the benefits of this section; providing for a
fund from which the loans are to be drawn; making this
Act contingent upon the passage of another Act; and
generally relating to the Authority.
BY adding to
Article 41 — Governor — Executive and Administrative
Departments
Section 266HH-1 through 266HH-12, inclusive, to be
under the new subheading "Maryland Small
Business Development Financing Authority Act"
Annotated Code of Maryland
(1971 Replacement Volume and 1977 Supplement)
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That section(s) of the Annotated Code of Maryland
be repealed, amended, or enacted to read as follows:
Article 41 - Governor — Executive and
Administrative Departments
MARYLAND SMALL BUSINESS DEVELOPMENT
FINANCING AUTHORITY ACT
266HH-1. DECLARATION OF FINDING AND PURPOSE.
(A) FINDINGS
(1) A MAJOR IMPEDIMENT LIMITING THE OPPORTUNITY
OF SOCIALLY OR ECONOMICALLY DISADVANTAGED BUSINESSMEN TO WIN
AND PERFORM GOVERNMENT CONTRACTS IS THEIR INABILITY TO
OBTAIN WORKING CAPITAL TO START, CONTINUE, AND COMPLETE THE
WORK REQUIRED BY THE CONTRACT.
(2) THERE ARE MANY INSTANCES ON RECORD WHERE A
SOCIALLY OR ECONOMICALLY DISADVANTAGED BUSINESSMAN HAS BEEN
AWARDED A GOVERNMENT CONTRACT, BUT BECAUSE OF LACK OF
WORKING CAPITAL, HAS BEEN UNABLE TO POST A PERFORMANCE BOND,
BUY SUPPLIES NEEDED TO START THE WORK OR PAY EMPLOYEES, AND,
THEREFORE IS UNABLE TO ACCEPT THE CONTRACT.
(3) ADDITIONALLY, COMMERCIAL LOAN OFFICERS OF
FINANCIAL INSTITUTIONS ARE GENERALLY RELUCTANT TO MAKE LOANS
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