HARRY HUGHES, Governor

3807

(G) "SPECIAL FUND" MEANS THE SMALL BUSINESS
DEVELOPMENT SPECIAL LONG-TERM FINANCING FUND.

[(e)] (H) "Working capital" means items of supplies,
materials, labor, or equipment [that become part of the
product or service to be delivered under a government
contract].

13-202.

(a) The General Assembly finds that:

(1)  The inability of socially or economically
disadvantaged [businessmen] PERSONS to obtain working
capital is a major limitation on their opportunity to win
and perform government contracts;

(2)  In many instances on record, a socially or
economically disadvantaged [businessman] PERSON has been
awarded a government contract, but has lacked the working
capital to post a performance bond, buy supplies needed to
begin the work, or pay employees and, therefore, has been
unable to accept the contract;

[(3) An excessive number of high risk, problem,
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)] (3) 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[.];

(4)  IN MANY INSTANCES ON RECORD, SOCIALLY OR
ECONOMICALLY DISADVANTAGED PERSONS LACK ADEQUATE CAPITAL TO
SUSTAIN AND EXPAND THEIR BUSINESSES AND TO HIRE AND TRAIN
EMPLOYEES;

(5)  HIGH RISK, PROBLEM, OR UNCOLLECTIBLE LOANS
ARE NOT IN THE INTEREST OF A FINANCIAL INSTITUTION, AND
THEREFORE, FINANCIAL INSTITUTIONS GENERALLY ARE RELUCTANT TO
LEND MONEY TO SOCIALLY OR ECONOMICALLY DISADVANTAGED PERSONS
WITH INSUFFICIENT RECORDS OF PERFORMANCE;

(6)  THE INABILITY OF BUSINESSES OWNED BY
SOCIALLY OR ECONOMICALLY DISADVANTAGED PERSONS TO OBTAIN
LONG-TERM FINANCING IS A MAJOR LIMITATION UPON THEIR
OPPORTUNITY TO SURVIVE AND EXPAND; AND

(7)  IT IS IN THE INTEREST OF THE PUBLIC WELFARE
AND PURPOSE TO PROMOTE THE VIABILITY AND EXPANSION OF
BUSINESSES OWNED BY ECONOMICALLY OR SOCIALLY DISADVANTAGED