2013 Maryland Code
HOUSING AND COMMUNITY DEVELOPMENT
§ 6-308 - Business Development Program -- Administration

§6-308.

(a) The Department shall:

(1) administer the Business Development Program;

(2) adopt regulations to carry out the Business Development Program;

(3) establish, for each category of financing described in § 6-306(c) of this subtitle, minimum percentages or amounts of private and nonstate public financing that an applicant for the Business Development Program must secure; and

(4) make a reasonable, good faith effort to make 25% of the Business Development Program loans and grants to microenterprises.

(b) The Department may:

(1) sell, assign, or otherwise dispose of a Program loan or revenue from a loan on terms and conditions acceptable to the Department, including selling loans at a discount, if the maximum sale proceeds in any fiscal year do not exceed $4,000,000; and

(2) apply the proceeds received from a sale, assignment, or other disposition under item (1) of this subsection to the Fund.

§ 6-308 - 1. Microenterprise loan program

(a) In general. -- If the Department determines that an entity is capable of administering a microenterprise loan program, the entity may originate and administer loans to microenterprises in accordance with standards the Department adopts by regulation.

(b) Regulations and standards. --

(1) The Department shall adopt regulations to establish standards for determining the eligibility of an entity to administer a microenterprise loan program.

(2) The standards shall include provisions on:

(i) the size, training, and experience of the professional staff that would administer the program; and

(ii) the capability of the professional staff to:

1. determine financial capacity of a borrower;

2. originate a loan; and

3. evaluate applications for program loans.

(c) Powers of Department. -- The Department may:

(1) help train employees of an approved entity to administer a microenterprise loan program in accordance with standards that the Department adopts;

(2) charge and collect from a borrower:

(i) reasonable origination, application, and processing fees; and

(ii) other charges, fees, or reimbursements incidental to microenterprise loans;

(3) include the fees and charges listed in item (2) of this subsection in the loan amount;

(4) pay an approved entity a reasonable origination, application, and processing fee for each loan to a microenterprise that is originated by the approved entity;

(5) directly fund a loan to a microenterprise that is originated by an approved entity; and

(6) provide financial assistance to an approved entity for the purpose of the approved entity making a loan to a microenterprise in accordance with this subtitle.