PARRIS N. GLENDENING, Governor .                            H.B. 85

(b) (1) The Department may contract for and engage the services of some or all
of the Authority staff, who shall have organized themselves as a private Maryland
corporation, to administer the programs of the Maryland Small Business Development
Financing Authority for a period of 3 years.

(2)     The Department [has the option to renew this contract for 2 years.]
MAY:

(I)      EXTEND THE EXPIRATION DATE OF THE INITIAL CONTRACT
TO JUNE 30, 2002; AND

(II)    RENEW THE EXTENDED CONTRACT FOR TWO ONE
ADDITIONAL 5-YEAR TERMS TERM.

(3)     ANY EXTENSION OR RENEWAL CONTRACT SHALL INCLUDE
STANDARDS TO EVALUATE THE PERFORMANCE OF THE PRIVATE CONTRACTOR IN
RENDERING SERVICES UNDER THE CONTRACT.

(3) (4) The corporation may use the name Maryland Small Business
Development Financing Agency, MSBDFA, Inc. or any close approximation of that name.

5-1025.

(b) If the applicant is an individual, the applicant shall satisfy the Authority that:

(1)     The applicant is of good moral character;

(2)     As determined from creditors, employers, and other individuals who
have personal knowledge of the applicant, the applicant has a reputation for financial
responsibility;

(3)     The applicant is a resident of Maryland or the applicant's principal place

of business is in Maryland; and

(4)     The applicant is unable to obtain adequate business financing on
reasonable terms through normal lending channels because the applicant:

(i) Belongs to a group that historically has been deprived of access to
normal economic or financial resources because of race, color, creed, sex, religion, or

national origin;

(ii) Has an identifiable physical handicap that severely limits the
ability of the applicant to obtain financial assistance, but does not limit the ability of the
applicant to perform the contract or other activity for which the applicant would be

receiving financial assistance; or

(iii) Has any other social or economic impediment that is beyond the
personal control of the applicant, such as lack of formal education or financial capacity or
geographical or regional economic distress but that does not limit the ability of the
applicant to perform the contract or other activity for which the applicant would be
receiving financial assistance.

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