# Economic Development (GEC)

## Title 5. Economic Development and Financial Assistance Programs

### Subtitle 10. Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Program

#### Section 5-1001

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

(b) "Active duty" has the meaning stated in Sec. 9-901 of the State Government Article.

(c) "Fund" means the Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Fund established under Sec. 5-1006 of this subtitle.

(d) "Reserve component" has the meaning stated in Sec. 9-901 of the State Government Article.

(e) "Service-disabled veteran" means a veteran with a disability that is service-connected, as defined in 38 U.S.C. Sec. 101(16).

(f)

  (1) "Small business employer" means an employer who employed an average of 50 or fewer employees on business days during the calendar year preceding the determination of eligibility for a loan under this subtitle.

  (2) For purposes of paragraph (1) of this subsection, all persons treated as a single employer under Sec. 414(b), (c), (m), or (o) of the Internal Revenue Code shall be treated as a single employer under this subtitle.

(g) "Uniformed services" has the meaning stated in Sec. 9-901 of the State Government Article.

(h) "Veteran" has the meaning stated in Sec. 9-901 of the State Government Article.

(i) "Veteran-owned small business" means a small business that is at least 51% owned by a veteran.

#### Section 5-1002

(a) Subject to the availability of funds, the Department, in consultation with the Department of Veterans and Military Families, shall establish a program to provide no-interest loans under this subtitle to:

  (1) small business employers of reserve component members who are called to active duty;

  (2) businesses owned by reserve component members who are called to active duty;

(b) If the availability of funds is limited, in making loans under this subtitle, the Department, in consultation with the Department of Veterans and Military Families, shall give priority to the businesses described in subsection (a)(2) and (3) of this section.

(c) In making loans under this subtitle, the Department, in consultation with the Department of Veterans and Military Families, shall take into consideration how to maximize the number of veterans and reserve component members who would benefit from loans made under this subtitle.

#### Section 5-1003

Loans shall be made under this subtitle for the purposes of:

(1) providing financial support to:

  (i) a business owned by a reserve component member who is called to active duty; or

  (ii) a small business employer of a reserve component member who is called to active duty;

(2) making the home, motor vehicle, or place of employment of a veteran accessible to individuals with disabilities, including purchasing equipment necessary to enable a business to employ a service-disabled veteran or to enable a service-disabled veteran to operate a business; and

(3) defraying other necessary expenses, as determined by the Department of Veterans and Military Families, incurred by:

  (i) a business employing a service-disabled veteran; or

  (ii) a veteran-owned small business.

#### Section 5-1004

(a) A loan made under this subtitle for the purpose of providing financial support to a business owned by an individual who is called to active duty or to a small business employer of an individual who is called to active duty:

  (1) may be made at any time from the individual's receipt of orders to report to 6 months after the end of the individual's active duty; and

  (2) shall be subject to criteria for eligibility and priority established by the Department of Veterans and Military Families, including the extent to which the individual who is called to active duty is an essential employee of the business.

(b) A loan made under this subtitle for the purpose of making accessible to individuals with disabilities the home, motor vehicle, or place of employment of a service-disabled veteran may be made at any time.

#### Section 5-1005

(a) The Department shall administer the loan program authorized under this subtitle.

(b) The Department of Veterans and Military Families shall establish eligibility criteria for loans under this subtitle.

#### Section 5-1006

(a) There is a Uniformed Services Personnel and Veteran-Owned Small Business No-Interest Loan Fund.

(b) The purpose of the Fund is to provide no-interest loans consistent with this subtitle.

(c) The Secretary shall administer the Fund.

(d)

  (1) The Fund is a special, nonlapsing fund that is not subject to reversion under Sec. 7-302 of the State Finance and Procurement Article.

  (2) The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund.

  (3) Any investment earnings of the Fund shall be credited to the Fund.

(e) The Fund consists of:

  (1) money the State appropriates to the Fund;

  (2) money made available to the Fund through federal programs or private contributions;

  (3) repayments from loans provided by the Department under this subtitle;

  (4) proceeds from the sale, disposition, lease, or rental of collateral related to loans provided by the Department under this subtitle; and

  (5) any other money made available to the Fund.

(f) The Department may use money in the Fund to provide loans to eligible applicants under Sec.Sec. 5-1002 through 5-1004 of this subtitle.

#### Section 5-1007

(a) The Department shall adopt regulations to carry out this subtitle.

(b) The Department of Veterans and Military Families may adopt regulations concerning eligibility criteria for loans under this subtitle.

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