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MD HB829

MD HB829
Economic Development – Small Business Financing – Loan Loss Reserve (Maryland Capital Access Program)


summary

Introduced
01/29/2021
In Committee
04/12/2021
Crossed Over
03/18/2021
Passed
04/12/2021
Dead
Signed/Enacted/Adopted
05/30/2021

Introduced Session

2021 Regular Session

Bill Summary

Establishing a Capital Access Program in the Department of Commerce for the purpose of stimulating opportunities for small businesses that may have difficulty in obtaining business financing to have access to credit by establishing a loan loss reserve program; specifying that certain loans qualify under the Program; requiring a lender to enroll a qualifying loan not more than 30 days after the date of the first disbursement; authorizing a lender to enroll all or a portion of a qualifying loan in an amount not more than $250,000; etc.

AI Summary

This bill establishes the Capital Access Program in the Maryland Department of Commerce to help small businesses that may have difficulty obtaining financing access credit through a loan loss reserve program. The program defines eligible borrowers as small businesses with fewer than 50 employees and allows lenders such as credit unions, financial institutions, and community development financial institutions to enroll qualifying loans of up to $250,000 with a term of up to 10 years. The program requires contributions from the borrower, lender, and the Department to the loan loss reserve account, which the lender can then withdraw from if the borrower defaults. The bill also appropriates $10 million for the program in fiscal year 2023 and authorizes the Department to adopt regulations to implement the program.

Committee Categories

Budget and Finance, Business and Industry

Sponsors (1)

Last Action

Enacted under Article II, Section 17(c) of the Maryland Constitution - Chapter 704 (on 05/30/2021)

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