In this subtitle the following words have the meanings indicated. “Borrower” means a business that: qualifies as a small business under the U.S. Small Business Administration size standards; applies to a lender for business financing; and has fewer than 50 employees. “Department” means the Department of Commerce. “Lender” means: a credit union, as defined in § 1–101 of the Financial Institutions Article; a financial institution, as defined in § 1–101 of the Financial Institutions Article; or a community development financial institution, as defined in 12 U.S.C. § 4702(5). “Program” means the Capital Access Program established under this subtitle.

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

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.

A loan to a social equity licensee qualifies under the Program if the loan: satisfies the lending criteria of the lender; and does not exceed: for a dispensary, $500,000; or for a grower or processor, $1,000,000. 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.

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. A lender may enroll all or a portion of a qualifying loan in an amount of not more than: for a dispensary, $500,000; or for a grower or processor, $1,000,000.

The Department shall establish a loan loss reserve account for a lender when the lender enrolls its first loan under the Program. At the time of enrollment: the borrower shall make a payment to the account of between 0% and 7% of the enrolled loan amount; the lender shall make a payment to the account of at least 2% of the enrolled amount; and 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. The loan loss reserve account of a lender shall be available for the lender to withdraw if a borrower defaults on a qualifying loan. The Department shall collaborate with the Office of Social Equity established under § 9–4108 of the State Government Article to identify and assist businesses with obtaining financing from the Program. The Department shall establish procedures for a lender to withdraw from the Program.