# Economic Development (GEC)

## Title 5. Economic Development and Financial Assistance Programs

### Subtitle 12. Maryland Nonprofit Development Center Program

#### Section 5-1201

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

(b) "Fund" means the Maryland Nonprofit Development Center Program Fund established under Sec. 5-1204 of this subtitle.

(c) "Nonprofit entity" means a corporation incorporated in the State, or otherwise qualified to do business in the State, that has been determined by the Internal Revenue Service to be exempt from taxation under Sec. 501(c)(3), (4), or (6) of the Internal Revenue Code.

(d) "Program" means the Maryland Nonprofit Development Center Program established under Sec. 5-1202 of this subtitle.

(e) "Qualifying nonprofit entity" means a nonprofit entity:

  (1) that has annual revenues not greater than $750,000;

  (2) that has been in existence for not more than 10 years; and

  (3) whose principal purpose is providing health, education, environmental, agricultural, or social services through community-based programs.

#### Section 5-1202

(a) There is a Maryland Nonprofit Development Center Program in the Department.

(b) The Program shall foster, support, and assist the economic growth and revitalization of qualifying nonprofit entities in the State by providing training and technical assistance services and bridge loans to nonprofit entities that have received written confirmation of funding from government grants or contracts but have not yet received the funding.

#### Section 5-1203

The Program shall provide assistance to qualifying nonprofit entities, including:

(1) operation of an information exchange governing current and new technical information and data about all aspects of nonprofit management, including:

  (i) nonprofit start-up;

  (ii) budgeting and financial management;

  (iii) facilities development and management;

  (iv) board development;

  (v) organizational development and strategic planning;

  (vi) marketing;

  (vii) federal and State contracting and grant making;

  (viii) individual, corporate, and foundation fund-raising;

  (ix) volunteer management;

  (x) personnel management;

  (xi) federal and State tax law and regulations;

  (xii) federal and State law and regulations governing charitable solicitations;

  (xiii) federal and State regulations applicable to licensing or accreditation;

  (xiv) federal and State financing programs; and

  (xv) information technology; and

(2) individual consultation and technical assistance to any qualifying nonprofit entity that requests the service, including assistance on any of the subjects identified in item (1) of this section.

#### Section 5-1204

(a)

  (1)

    (i) There is a Maryland Nonprofit Development Center Program Fund in the Department.

    (ii)

      (1) Within the Fund, there is a Nonprofit, Interest-Free, Micro Bridge Loan (NIMBL) Account.

      (2) The Account consists of:

      (A) money received under Sec. 9-1A-27 of the State Government Article; and

      (B) any other money appropriated, transferred by budget amendment, or repaid to the Account.

      (3) The money in the Account may not exceed $1,000,000.

      (4) If the money in the Account exceeds $1,000,000, any money in excess of that amount shall be transferred to the Small, Minority, and Women-Owned Businesses Account established under Sec. 5-1501 of this title.

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

  (3) The Fund consists of:

    (i) money appropriated in the State budget to the Fund;

    (ii) money in the Nonprofit, Interest-Free, Micro Bridge Loan (NIMBL) Account; and

    (iii) all other money accepted for the benefit of the Fund, including an additional $50 fee to be paid for the processing of articles of incorporation of a nonstock corporation in accordance with Sec. 1-203 of the Corporations and Associations Article.

(b)

  (1) The purpose of the Fund is to provide grant money and bridge loans to support the operations of the Program consistent with this subtitle.

  (2) As provided in the State budget, the Fund also may be used by the Department of General Services to evaluate the participation of nonprofit entities in State procurement.

(c)

  (1) For fiscal year 2024, the Governor shall include in the annual budget bill an appropriation of $1,000,000 to the Fund to be used for loans under the NIMBL Account.

  (2) If $1,000,000 is not included in the annual budget bill for fiscal year 2024, then the Governor shall include in the annual budget bill for fiscal year 2025 an appropriation of $1,000,000 to be used for loans under the NIMBL Account.

#### Section 5-1205

(a) The Department shall designate at least one private nonprofit entity to receive grants from the Maryland Nonprofit Development Center Program Fund to implement the Program.

(b) In selecting a designee, the Department shall consider and give priority to organizations that:

  (1) have experience in providing the scope of assistance and services required under Sec. 5-1203 of this subtitle to qualifying nonprofit entities in the State;

  (2) demonstrate the capacity to provide the assistance and services required under Sec. 5-1203 of this subtitle on a statewide basis; and

  (3) demonstrate current expenditures that:

    (i) are equal to at least three times the amount of funding received under this section; and

    (ii) have been received from other sources for the provision of assistance and services of the type required under Sec. 5-1203 of this subtitle to nonprofit entities in the State.

(c)

  (1) The Department may provide a no-interest bridge loan for operating expenses of up to $25,000 to a nonprofit entity that has received written confirmation of funding from a government grant or contract but has not yet received the funding.

  (2) The Department shall establish an application process for bridge loans provided under this subsection.

  (3) Before providing a bridge loan under this subsection, the Department shall receive written confirmation that the nonprofit entity has been awarded a government grant or contract but has not yet received the funding.

  (4) The Department shall establish a schedule for repayment for a bridge loan that:

    (i) is reasonable based on the nature and payment schedule of the government grant or contract to the nonprofit entity; and

    (ii) assures repayment of the bridge loan is completed no later than the date of the final grant or contract payment to the nonprofit entity.

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