HARRY HUGHES, Governor                                        691

OR UNCOLLECTIBLE LOANS IS NOT IN THE INTEREST OF A FINANCIAL
INSTITUTION, AND, THEREFORE, FINANCIAL INSTITUTIONS
GENERALLY ARE RELUCTANT TO LEND MONEY TO SOCIALLY OR
ECONOMICALLY DISADVANTAGED BUSINESSMEN WITH INSUFFICIENT
RECORDS OF PERFORMANCE; AND

(4) CERTAIN PERSONS ARE UNABLE TO OBTAIN
GOVERNMENT CONTRACTS FOR REASONS OTHER THAN THE COST TO THE
GOVERNMENT OR THE ABILITY OF THE PERSON TO PERFORM THE
CONTRACT WORK COMPETENTLY.

(B) STATEMENT OF PURPOSE.

THE PURPOSES OF THE AUTHORITY ARE:

(1)   TO ASSIST SOCIALLY OR ECONOMICALLY
DISADVANTAGED BUSINESSMEN TO OBTAIN WORKING CAPITAL THAT IS
ADEQUATE TO BEGIN, CONTINUE, AND COMPLETE A PROJECT UNDER A
FEDERAL, STATE, OR LOCAL GOVERNMENT CONTRACT;

(2)   TO ENCOURAGE SOCIALLY OR ECONOMICALLY
DISADVANTAGED BUSINESSMEN TO SEEK GOVERNMENT CONTRACTS; AND

(3)   TO ENCOURAGE FINANCIAL INSTITUTIONS TO MAKE
LOANS TO THESE BUSINESSMEN.

REVISOR'S NOTE: This section is new language derived
without substantive change from Art. 41, §
266HH-1.

In subsection (a)(3) of this section, the phrase
"insufficient records of performance" is
substituted for "short track records or
nonexistent histories" for clarity.

In subsection (b) (3) of this section, the term
"financial" is substituted for "lending" as it
refers to institutions to conform with the
terminology used elsewhere in this subtitle.

The present reference to the establishment of the
Authority is deleted as unnecessary in light of §
13-205 of this subtitle.

13-203.      RESERVED.

13-204.      RESERVED.

PART II. ESTABLISHMENT AND ORGANIZATION OF AUTHORITY.

13-205.      AUTHORITY ESTABLISHED.

THERE IS A MARYLAND SMALL BUSINESS DEVELOPMENT
FINANCING AUTHORITY IN THE DEPARTMENT OF ECONOMIC AND
COMMUNITY DEVELOPMENT.

REVISOR'S NOTE: This section presently appears as Art.