2964

LAWS OF MARYLAND

Ch. 626

Financial Assistance --General Fund

FOR the purpose of altering the amount of a loan or equity
investment which can be loaned or guaranteed by the Small
Business Development Financing Authority general fund;
correcting certain references to the Contract Financing
Fund; and generally relating to financing assistance from
the Small Business Development Financing Authority general
fund.

BY repealing and reenacting, with amendments,

Article - Financial Institutions

Section 13-228(a), 13-229(a), and 13-230(a)

Annotated Code of Maryland

(1980 Volume and 1984 Supplement)

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

Article - Financial Institutions

13-228.

(a) The Authority may utilize the [Contract Financing Fund]
GENERAL FUND to guarantee a loan made to an applicant only if:

(1)  The applicant meets the qualifications required
by this subtitle;

(2)  The loan is to be used to perform a contract for
a project that a federal, State, or local government finances;

(3)  The part of the loan to be guaranteed does not
exceed [$150,000] $250,000; and

(4)  The loan to be guaranteed is to be used primarily
for working capital.

13-229.

(a) The Authority may utilize the [Contract Financing Fund]
GENERAL FUND to guarantee a person's proposed equity investment
in the applicant only if:

(1)  The applicant meets the requirements of this
subtitle;

(2)  The amount of the equity investment to be
guaranteed does not exceed the lesser of:

(i) [10] 15 percent of the person's equity
investment in the applicant; or