# Economic Development (GEC)

## Title 5. Economic Development and Financial Assistance Programs

### Subtitle 5. Maryland Small Business Development Financing Authority

#### Section 5-515

(a) There is a Maryland Small Business Development Financing Fund in the Department.

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

(c) The State Treasurer shall:

  (1) invest the money in the Fund in the same manner as other State money may be invested;

  (2) credit any investment earnings to the Fund; and

  (3) report each year to the Department on:

    (i) the status of the money invested under this subtitle;

    (ii) the market value of the assets in the Fund as of the date of the report; and

    (iii) the interest received from investments during the period covered by the report.

(d)

  (1) The Fund is the successor of the Small Business Development Contract Financing Fund, the Small Business Development Guaranty Fund, the Equity Participation Investment Incentive Program Fund, and the Small Business Surety Bond Fund established under the Maryland Small Business Development Financing Authority.

  (2) All financial assistance transactions and obligations approved by the Maryland Small Business Development Financing Authority shall continue as obligations of the Fund and are authorized under this subtitle.

(e) The Fund consists of:

  (1) premiums for guaranteeing loans under this subtitle;

  (2) premiums for guaranteeing equity investments under this subtitle;

  (3) repayments of principal of and interest on direct loans and equity participation financing made under this subtitle;

  (4) proceeds from the sale, disposition, lease, or rental of collateral for direct loans, loan guaranties, or equity participation financing made under this subtitle;

  (5) loans and grants from the federal government or a unit or instrumentality of the federal government;

  (6) grants and contributions of funds from the State, a political subdivision, or any other source;

  (7) premiums for guaranteeing long-term loans under this subtitle;

  (8) notwithstanding Sec. 10-469(e) and (f) of this article or any other law, any recovery of investments made under Sec. 10-469 of this article that were funded by a transfer of money from the funds under this subtitle to the Enterprise Fund, including an investment in MMG Ventures LLP;

  (9) notwithstanding Sec. 10-469(e) and (f) of this article or any other law, any repayment of a grant made under Sec. 10-469 of this article that was funded by a transfer of money from the funds under this subtitle to the Enterprise Fund;

  (10) money the State appropriates to the Fund;

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

  (12) premiums, fees, royalties, and repayments of investments made under the terms of bonding assistance and equity participation financing; and

  (13) all other receipts of the Department under this subtitle.

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