# Economic Development (GEC)

## Title 5. Economic Development and Financial Assistance Programs

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

#### Section 5-552

(a) The Authority may guarantee a surety up to the lesser of 90% or $3,000,000 of its loss under a bid bond, payment bond, or performance bond on a contract.

(b) The term of a guaranty under this part may not exceed the contract term, including:

  (1) the maintenance or warranty period required by the contract; and

  (2) the period during which the surety may be liable for latent defects.

(c) The Authority may vary the terms and conditions of a guaranty based on:

  (1) the Authority's history of experience with a surety; and

  (2) any other factor the Authority considers relevant.

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