Economic Development - Small, Minority, and Women-Owned Business Accounts - Management Fees (Small Business Increased Access to Capital Act), the official text

WES MOORE, Governor                  Ch. 392

Chapter 392

                   (Senate Bill 920)

AN ACT concerning

Economic Development – Small, Minority, and Women–Owned Business
                                 Accounts – Management Fees

                 (Small Business Increased Access to Capital Act)

FOR the purpose of authorizing the Department of Commerce to authorize an eligible fund
         manager to receive, use, and retain a certain management fee; authorizing the
         Department to set an annual cap on the amount of certain management fees; and
         generally relating to management fees for eligible fund managers of Small, Minority,
         and Women–Owned Business Accounts.

BY repealing and reenacting, without amendments,
         Article – Economic Development
         Section 5–1501(a)
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)

BY repealing and reenacting, with amendments,
         Article – Economic Development
         Section 5–1501(g)
         Annotated Code of Maryland
         (2024 Replacement Volume and 2025 Supplement)

         SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND,
That the Laws of Maryland read as follows:

                   Article – Economic Development

5–1501.

(a) In this section, “eligible fund manager” means:

                  (1) an entity that has significant financial or investment experience, under
criteria developed by the Department; and

                  (2) includes an entity that the Department designates to manage funds
received under subsection (c)(1) of this section.

         (g) (1) Subject to paragraph (2) of this subsection, an eligible fund manager
may use money from grants received under this section to pay expenses for administrative,
actuarial, legal, and technical services.

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Ch. 392  2026 LAWS OF MARYLAND

                  (2) The Department shall set the maximum amount of grant money that
each eligible fund manager may use under paragraph (1) of this subsection.

                (3) (I) IN ADDITION TO OR IN LIEU OF THE AMOUNT AUTHORIZED
UNDER PARAGRAPH (2) OF THIS SUBSECTION, THE DEPARTMENT MAY AUTHORIZE

AN ELIGIBLE FUND MANAGER TO RECEIVE A MANAGEMENT FEE THAT IS

CALCULATED AS A PERCENTAGE OF EACH LOAN MADE UNDER SUBSECTION (D) OF
THIS SECTION.

                         (II) THE PERCENTAGE AUTHORIZED UNDER SUBPARAGRAPH (I)
OF THIS PARAGRAPH MAY NOT BE LESS THAN 1.5% AND MAY NOT EXCEED 3% OF THE
TOTAL LOAN PRINCIPAL.

                         (III) A MANAGEMENT FEE AUTHORIZED UNDER THIS
PARAGRAPH SHALL BE PAID FROM THE ACCOUNT AND MAY BE RETAINED BY AN

ELIGIBLE FUND MANAGER FOR ADMINISTRATIVE PURPOSES RELATED TO LENDING

ACTIVITIES UNDER SUBSECTION (D) OF THIS SECTION.

                (4) THE DEPARTMENT MAY ESTABLISH AN ANNUAL CAP ON THE

CUMULATIVE AMOUNT OF MANAGEMENT FEES AN ELIGIBLE FUND MANAGER MAY

RECEIVE UNDER PARAGRAPHS (2) AND (3) OF THIS SUBSECTION.

         SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July
1, 2026.

Approved by the Governor, May 12, 2026.

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