# Alcoholic Beverages and Cannabis (GAB)

## Title 36. Medical and Adult-Use Cannabis

### Subtitle 14. Capital Access Program

#### Section 36-1401

(a) In this subtitle the following words have the meanings indicated.

(b) "Borrower" means a business that:

  (1) qualifies as a small business under the U.S. Small Business Administration size standards;

  (2) applies to a lender for business financing; and

  (3) has fewer than 50 employees.

(c) "Department" means the Department of Commerce.

(d) "Lender" means:

  (1) a credit union, as defined in Sec. 1-101 of the Financial Institutions Article;

  (2) a financial institution, as defined in Sec. 1-101 of the Financial Institutions Article; or

  (3) a community development financial institution, as defined in 12 U.S.C. Sec. 4702(5).

(e) "Program" means the Capital Access Program established under this subtitle.

#### Section 36-1402

There is a Capital Access Program in the Department of Commerce.

#### Section 36-1403

The purpose of the Program is to stimulate opportunities for social equity licensees that have difficulty obtaining financing and to establish a loan loss reserve account.

#### Section 36-1404

(a) A loan to a social equity licensee qualifies under the Program if the loan:

  (1) satisfies the lending criteria of the lender; and

  (2) does not exceed:

    (i) for a dispensary, $500,000; or

    (ii) for a grower or processor, $1,000,000.

(b) A loan that qualifies under subsection (a) of this section may be short or long term, have fixed or variable rates, and be secured or unsecured.

#### Section 36-1405

(a) To participate in the Program,  a lender shall enroll the qualifying loan in the Program not more than 30 days after the date of the first disbursement of the loan.

(b) A lender may enroll all or a portion of a qualifying loan in an amount of not more than:

  (1) for a dispensary, $500,000; or

  (2) for a grower or processor, $1,000,000.

#### Section 36-1406

(a) The Department shall establish a loan loss reserve account for a lender when the lender enrolls its first loan under the Program.

(b) At the time of enrollment:

  (1) the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount;

  (2) the lender shall make a payment to the account of at least 2% of the enrolled amount; and

  (3) the Administration shall make a matching payment to the account in an amount equal to the borrower and lender's aggregate payment under items (1) and (2) of this subsection.

(c) The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan.

(d) The Department shall collaborate with the Office of Social Equity established under Sec. 9-4108 of the State Government Article to identify and assist businesses with obtaining financing from the Program.

(e) The Department shall establish procedures for a lender to withdraw from the Program.

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Md. Code Ann., Alco. Bev. (as displayed at mgaleg.maryland.gov, October 16, 2026)