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*hb0798*
HOUSE BILL 798
C8 (6lr2179)
ENROLLED BILL
— Economic Matters/Finance —
Introduced by Delegate Wolek
Read and Examined by Proofreaders:
_______________________________________________
Proofreader.
_______________________________________________
Proofreader.
Sealed with the Great Seal and presented to the Governor, for his approval this
_______ day of _______________ at _________________ _______ o’clock, ________M.
______________________________________________
Speaker.
CHAPTER ______
AN ACT concerning 1
Economic Development – Small, Minority, and Women–Owned Business 2
Accounts – Management Fees 3
(Small Business Increased Access to Capital Act) 4
FOR the purpose of authorizing the Department of Commerce to authorize an eligible fund 5
manager to receive, use, and retain a certain management fee ; authorizing the 6
Department to set an annual cap on the amount of certain management fees; and 7
generally relating to management fees for eligible fund managers of Small, Minority, 8
and Women–Owned Business Accounts. 9
BY repealing and reenacting, without amendments, 10
Article – Economic Development 11
Section 5–1501(a) 12
Annotated Code of Maryland 13
(2024 Replacement Volume and 2025 Supplement) 14
2 HOUSE BILL 798
BY repealing and reenacting, with amendments, 1
Article – Economic Development 2
Section 5–1501(g) 3
Annotated Code of Maryland 4
(2024 Replacement Volume and 2025 Supplement) 5
SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 6
That the Laws of Maryland read as follows: 7
Article – Economic Development 8
5–1501. 9
(a) In this section, “eligible fund manager” means: 10
(1) an entity that has significant financial or investment experience, under 11
criteria developed by the Department; and 12
(2) includes an entity that the Department designates to manage funds 13
received under subsection (c)(1) of this section. 14
(g) (1) Subject to paragraph (2) of this subsection, an eligible fund manager 15
may use money from grants received under this section to pay expenses for administrative, 16
actuarial, legal, and technical services. 17
(2) The Department shall set the maximum amount of grant money that 18
each eligible fund manager may use under paragraph (1) of this subsection. 19
(3) (I) IN ADDITION TO OR IN LIEU OF THE AMOUNT AUTHORIZED 20
UNDER PARAGRAPH (2) OF THIS SUBSECTION, THE DEPARTMENT MAY AUTHORIZE 21
AN ELIGIBLE FUND MAN AGER TO RECEIVE A MA NAGEMENT FEE THAT IS 22
CALCULATED AS A PERCENTAGE OF EACH LOAN MADE UNDER SUBS ECTION (D) OF 23
THIS SECTION. 24
(II) THE PERCENTAGE AUTHORIZED UNDER SUBPARAGRAPH (I) 25
OF THIS PARAGRAPH MAY NOT BE LESS THAN 1.5% AND MAY NOT EXCEED 3% OF THE 26
TOTAL LOAN PRINCIPAL. 27
(III) A MANAGEMENT FEE AUTHO RIZED UNDER THIS 28
PARAGRAPH SHALL BE P AID FROM THE ACCOUNT AND MAY BE RE TAINED BY AN 29
ELIGIBLE FUND MANAGER FOR ADMINISTRATIVE PURPOSES RELATED TO LENDING 30
ACTIVITIES UNDER SUBSECTION (D) OF THIS SECTION. 31
HOUSE BILL 798 3
(4) THE DEPARTMENT MAY ESTABL ISH AN ANNUAL CAP ON THE 1
CUMULATIVE AMOUNT OF MANAGEMENT FEES AN ELIGIBLE FUND MANAGER MAY 2
RECEIVE UNDER PARAGRAPHS (2) AND (3) OF THIS SUBSECTION. 3
SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 4
1, 2026. 5
Approved:
________________________________________________________________________________
Governor.
________________________________________________________________________________
Speaker of the House of Delegates.
________________________________________________________________________________
President of the Senate.