2570                                            LAWS OF MARYLAND                                     Ch. 879

TO SOCIALLY OR ECONOMICALLY DISADVANTAGED BUSINESSMEN WITH
SHORT TRACK RECORDS OR NONEXISTENT HISTORIES. IT IS NOT IN
THE INTEREST OF A BANK OFFICIAL TO CARRY AN EXCESSIVE NUMBER
OF HIGH RISK, PROBLEM, AND UNCOLLECTABLE TRANSACTIONS IN HIS
PORTFOLIO.

(B) PURPOSE

(1)    IT IS THE INTENTION OF THIS LEGISLATION TO
ASSIST THE SOCIALLY OR ECONOMICALLY DISADVANTAGED
BUSINESSMAN TO SECURE ADEQUATE WORKING CAPITAL TO START,
CONTINUE, AND COMPLETE A PROJECT AWARDED THE SHALL
BUSINESSMAN BY A FEDERAL, STATE, OR LOCAL GOVERNMENTAL
AGENCY.

(2)    THE GENERAL ASSEMBLY IS CONCERNED THAT
CONTRACTS ARE EFFECTIVELY BEING KEPT FROM CERTAIN PERSONS
FOR REASONS OTHER THAN THEIR COST TO THE GOVERNMENT OR THE
RECIPIENTS ABILITY TO COMPETENTLY PERFORM THE CONTRACT
WORK.

(3)    THE GENERAL ASSEMBLY CONCLUDES THAT THERE
IS A NEED FOR A MARYLAND SMALL BUSINESS DEVELOPMENT
FINANCING AUTHORITY WITHIN THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT TO ENCOURAGE SOCIALLY OR ECONOMICALLY
DISADVANTAGED BUSINESSMEN TO SEEK GOVERNMENT CONTRACTS, AND
TO ENCOURAGE LENDING INSTITUTIONS TO PROVIDE LOANS TO THESE
BUSINESSMEN.

266HH-2.

(A)    IN THIS SUBHEADING THE FOLLOWING WORDS HAVE THE
MEANINGS INDICATED.

(B)    "ELIGIBLE APPLICANT":

(1)    MEANS AN INDIVIDUAL OF GOOD CHARACTER,
APPROVED BY THE DEPARTMENT, WHO DUE TO SOCIAL OR ECONOMIC
DISADVANTAGE, HAS BEEN DENIED THE OPPORTUNITY TO ACQUIRE
ADEQUATE BUSINESS FINANCING ON REASONABLE TERMS, THROUGH
NORMAL LENDING CHANNELS; AND

(2)    INCLUDES SOLE PROPRIETORSHIPS,
PARTNERSHIPS, JOINT VENTURES, CORPORATIONS, AND OTHER
BUSINESS ENTERPRISES, 70 PERCENT OR MORE OF WHICH ARE OWNED
BY INDIVIDUALS QUALIFYING UNDER PARAGRAPH (1).

(C)    "SOCIAL OR ECONOMIC DISADVANTAGED" MEANS THE
SOCIAL OR ECONOMIC DISADVANTAGE WHICH RESULTS FROM:

(1) A SOCIALLY OR ECONOMICALLY DEPRIVED
INDIVIDUAL WHO IS A MEMBER OF A GROUP WHICH HAS BEEN
HISTORICALLY DEPRIVED OF ACCESS TO NORMAL ECONOMIC OR
FINANCIAL RESOURCES BECAUSE OF RACE, COLOR, CREED, SEX,
RELIGION, OR NATIONAL ORIGIN;

(2) AN INDIVIDUAL SUFFERING FROM AN
IDENTIFIABLE PHYSICAL HANDICAP WHICH SEVERELY LIMITS THE