Title 14. Preferences — Subtitle 5. Small Business Reserve Program
Statutes in effect as of October 1, 2026.
Md. Code Ann., State Fin. & Proc. § 14-501 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–501LinkCopy Citation
(a)
In this subtitle the following words have the meanings indicated.
(b)
“Certification agency” has the meaning stated in § 14–301 of this title.
(c)
“Economically disadvantaged individual” has the meaning stated in § 14–301 of this title.
(d)
“Small business” means:
(1)
a certified minority business enterprise, as defined in § 14–301 of this title, that meets the criteria specified under item (3) of this subsection;
(2)
a veteran–owned small business enterprise, as defined in § 14–601 of this title, that meets the criteria specified under item (3) of this subsection;
(3)
a business, other than a broker, that meets the following criteria:
(i)
the business is independently owned and operated;
(ii)
the business is not a subsidiary of another business;
(iii)
the business is not dominant in its field of operation; and
(iv)
(1)
(A)
the wholesale operations of the business did not employ more than 50 persons in its most recently completed 3 fiscal years;
(B)
the retail operations of the business did not employ more than 25 persons in its most recently completed 3 fiscal years;
(C)
the manufacturing operations of the business did not employ more than 100 persons in its most recently completed 3 fiscal years;
(D)
the service operations of the business did not employ more than 100 persons in its most recently completed 3 fiscal years;
(E)
the construction operations of the business did not employ more than 50 persons in its most recently completed 3 fiscal years; and
(F)
the architectural and engineering services of the business did not employ more than 100 persons in its most recently completed 3 fiscal years; or
(2)
(A)
the gross sales of the wholesale operations of the business did not exceed an average of $4,000,000 in its most recently completed 3 fiscal years;
(B)
the gross sales of the retail operations of the business did not exceed an average of $3,000,000 in its most recently completed 3 fiscal years;
(C)
the gross sales of the manufacturing operations of the business did not exceed an average of $2,000,000 in its most recently completed 3 fiscal years;
(D)
the gross sales of the service operations of the business did not exceed an average of $10,000,000 in its most recently completed 3 fiscal years;
(E)
the gross sales of the construction operations of the business did not exceed an average of $7,000,000 in its most recently completed 3 fiscal years; and
(F)
the gross sales of the architectural and engineering services of the business did not exceed an average of $4,500,000 in its most recently completed 3 fiscal years; or
(4)
a joint venture of two or more persons associated to carry out a single business activity for a limited purpose or time that meets the criteria specified under item (3) of this subsection.
(e)
“Small business reserve” means those procurements that are limited to responses from small businesses under § 14–502(c) of this subtitle.
Md. Code Ann., State Fin. & Proc. § 14-502 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–502LinkCopy Citation
(a)
Except as provided in subsection (d) of this section, this subtitle applies to all procurements by a unit.
(b)
This section does not apply to procurements subject to Subtitle 1 of this title.
(c)
To the extent practicable, a unit shall structure its procurement procedures to achieve a minimum of 20% of the unit’s total dollar value of goods, supplies, services, maintenance, construction, construction–related services, and architectural and engineering service contracts to be made directly to small businesses.
(d)
The total dollar value of procurements by a unit does not include the value of contracts to which this section does not apply because of a conflict with federal law.
(e)
A unit may apply toward the unit’s overall annual Small Business Reserve achievement awards made to a small business under designated small business reserve contracts as well as awards made to a small business under nondesignated small business reserve contracts.
(f)
(1)
The Special Secretary for the Office of Small, Minority, and Women Business Affairs, in consultation with the Attorney General, shall establish standards and guidelines for participation in the Small Business Reserve Program every 5 years.
(2)
The standards and guidelines established under paragraph (1) of this subsection shall allow for the registration of businesses for participation in the Small Business Reserve Program without the need to file any additional paperwork other than evidence that the business:
(i)
is a small business under this subtitle; and
(ii)
(1)
is certified as a minority business enterprise under Subtitle 3 of this title;
(2)
is certified under the federal Disadvantaged Business Enterprise Program; or
(3)
is qualified as a small business under Subtitle 2 of this title.
Md. Code Ann., State Fin. & Proc. § 14-502.1 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–502.1LinkCopy Citation
(a)
(1)
This section applies to a procurement by any unit or agency of the Executive Branch of State government for goods, supplies, services, maintenance, construction, construction–related services, architectural services, or engineering services.
(2)
This section does not apply to:
(i)
procurements made under Subtitle 1 of this title;
(ii)
procurements involving expenditures of federal dollars, to the extent that inclusion in the small business reserve program conflicts with federal law or grant provisions;
(iii)
the procurement of human, social, cultural, or educational services; or
(iv)
term and master contracts exempted under subsection (c) of this section.
(b)
(1)
A procurement with a total dollar value of $1,000,000 or less shall be designated for the small business reserve.
(2)
Each unit or agency shall implement this subsection in a manner consistent with all applicable statutes, including the requirements of Subtitle 3 of this title.
(c)
(1)
A procurement may be exempt from designation under subsection (b) of this section if the Office of Small, Minority, and Women Business Affairs certifies, concurrently with review of any waiver determinations for certified minority business enterprise participation contract goals, that it is not practicable to do so.
(2)
The Office of State Procurement in the Department of General Services shall assist the Office of Small, Minority, and Women Business Affairs in establishing procedures and guidelines for the exemption of procurements under paragraph (1) of this subsection.
Md. Code Ann., State Fin. & Proc. § 14-503 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–503LinkCopy Citation
(a)
(1)
The Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish procedures for compiling and maintaining a comprehensive bidder’s list of qualified small businesses that shall be posted on the Internet.
(2)
The Office of Small, Minority, and Women Business Affairs shall adopt regulations to establish a certification review process.
(b)
The Office of Small, Minority, and Women Business Affairs shall:
(1)
establish guidelines for Small Business Reserve Program administration;
(2)
ensure agency compliance with the Small Business Reserve Program;
(3)
provide training and technical assistance to agency personnel; and
(4)
collect data regarding the State’s utilization of small business reserve vendors.
(c)
Each unit shall ensure compliance with the regulations set forth in subsection (a) of this section.
Md. Code Ann., State Fin. & Proc. § 14-504 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–504LinkCopy Citation
(a)
Any procurement by a unit of goods, supplies, services, maintenance, construction, construction–related services, architectural services, and engineering services shall be eligible for designation for the small business reserve.
(b)
A solicitation for procurement that has been designated for a small business reserve shall be published in the same manner as required for an invitation for bids as set forth in § 13–103(c) of this article.
(c)
The procurement officer of a unit shall award a procurement contract designated for a small business reserve to the small business that submits a responsive bid or a proposal that is reasonably susceptible of being selected for award that:
(1)
is the lowest bid price;
(2)
if the invitation for bids so provides, is the lowest evaluated bid price; or
(3)
is the bid or proposal most favorable to the State within the small business reserve.
Md. Code Ann., State Fin. & Proc. § 14-504.1 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–504.1LinkCopy Citation
(a)
The certification agency, in consultation with the Office of Small, Minority, and Women Business Affairs, shall develop an outreach program to increase the participation of small businesses that are owned by economically disadvantaged individuals participating in the Small Business Reserve Program.
(b)
On or before December 1 each year, the certification agency shall submit to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a report on:
(1)
the status of the outreach program required under subsection (a) of this section; and
(2)
the total number and dollar value of awards made to small businesses owned by economically disadvantaged individuals under designated small business reserve contracts.
Md. Code Ann., State Fin. & Proc. § 14-505 (2026)
Title 14. Preferences
Subtitle 5. Small Business Reserve Program
§ 14–505LinkCopy Citation
(a)
Within 60 days after the enactment of the budget bill by the General Assembly, each unit shall submit a report to the Office of Small, Minority, and Women Business Affairs that complies with the reporting requirements set forth in COMAR 21.11.01.06.
(b)
(1)
Within 60 days after the end of each fiscal year, each unit shall submit a report to the Office of Small, Minority, and Women Business Affairs that complies with the requirements of paragraph (2) of this subsection.
(2)
For the preceding fiscal year, the report shall:
(i)
state the total number and the dollar value of awards the unit made to small businesses under designated small business reserve contracts;
(ii)
state the total number and the dollar value of awards the unit made to small businesses under nondesignated small business reserve contracts, including purchase card procurements;
(iii)
state the total dollar value of awards the unit made under procurement contracts; and
(iv)
contain other such information as required by the Office of Small, Minority, and Women Business Affairs.
(c)
(1)
Except for the quarter in which a unit is submitting an annual report under this section, each unit shall report quarterly to the Office of Small, Minority, and Women Business Affairs:
(i)
Small Business Reserve annual designated and nondesignated achievement awards under subsection (b) of this section; and
(ii)
any other information requested by the Office of Small, Minority, and Women Business Affairs related to contracts governed by this subtitle.
(2)
The report required under this subsection may be prepared in conjunction with the annual report required under § 9–4120 of the State Government Article.
(d)
On or before the 5th day of a regular legislative session of each year, the Office of Small, Minority, and Women Business Affairs shall submit to the Board of Public Works and, subject to § 2–1257 of the State Government Article, to the Legislative Policy Committee a report summarizing the information the Office receives under subsection (b) of this section.