In this subtitle the following words have the meanings indicated. “Covered individual” has the meaning stated in § 11–606 of the Labor and Employment Article. “Fund” means the Maryland New Start Microloan Program Fund. “Program” means the Maryland New Start Microloan Program.

There is a Maryland New Start Microloan Program. The purpose of the Program is to provide loans to covered individuals participating in eligible entrepreneurship development programs. The Department, in consultation with the Governor’s Office of Small, Minority, and Women Business Affairs, shall administer the Program.

To carry out the purpose of the Program, the Department may issue loans in accordance with this section to qualified covered individuals. On a referral by an organization conducting an entrepreneurial development program under the New Start Grant Program established under § 11–606 of the Labor and Employment Article and subject to availability of funds in the Fund, a covered individual participating in that entrepreneurial development program may apply for a loan to establish a business. The referral shall include a recommendation by the organization conducting the entrepreneurial development program for the amount of the loan to be issued by the Department. The Department shall take a referral and recommendation provided by an organization conducting an entrepreneurial development program under this subsection into consideration when determining to issue a loan under this section but is not bound by the referral or recommendation. A loan issued under this section may not exceed $50,000. Subject to paragraph (2) of this subsection, the Department shall specify the terms of the loan. The loan may not require the provision of any collateral.

There is a Maryland New Start Microloan Program Fund. The purpose of the Fund is to provide loans to covered individuals in accordance with § 5–2203 of this subtitle. The Secretary shall administer the Fund. The Fund is a special, nonlapsing fund that is not subject to § 7–302 of the State Finance and Procurement Article. The State Treasurer shall hold the Fund separately, and the Comptroller shall account for the Fund. The Fund consists of: money appropriated in the State budget to the Fund; repayments of loans made through the Program; any interest earnings of the Fund; and any other money from any other source accepted for the benefit of the Fund. The Fund may be used only for: administrative costs of the Program; and the issuance of loans under § 5–2203 of this subtitle. During each fiscal year, the Department may not utilize more than 10% of the money appropriated to the Fund for administrative costs of this subtitle. In each of fiscal years 2024, 2025, 2026, 2027, and 2028, the Governor shall include in the annual budget bill an appropriation of at least $300,000 to the Fund. The State Treasurer shall invest the money of the Fund in the same manner as other State money may be invested. Any interest earnings of the Fund shall be credited to the Fund. Expenditures from the Fund may be made only in accordance with the State budget.

On or before January 1, 2029, the Department shall report to the Governor and, in accordance with § 2–1257 of the State Government Article, the General Assembly on: the funds included in the State budget and appropriated for the Fund for each fiscal year during the life of the Program; the implementation of the Program by the Department, including an assessment of the effectiveness of the Program; and the overall performance of the Program and impacts of the Program on loan recipients.

The Department shall adopt regulations to carry out this subtitle.