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

Small Business

Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor: Senators Harris , Charles , and Muse
Last action: 2026-05-12
Official status: Approved by the Governor - Chapter 392
Effective date: 2026-07-01

Plain English Breakdown

Checked against official source text during the last sync.

Small Business Increased Access to Capital Act

This act allows the Department of Commerce to authorize management fees for eligible fund managers who help small, minority, and women-owned businesses get loans, with a cap on how much they can receive.

What This Bill Does

Allows the Department of Commerce to let eligible fund managers take a percentage fee from loans given to small, minority, and women-owned businesses.
Sets a minimum management fee rate at 1.5% and a maximum at 3% of each loan's total amount.
Permits the Department to set an annual limit on how much in management fees an eligible fund manager can receive.
Requires that these fees be used for administrative purposes related to lending activities.

Who It Names or Affects

Small, minority, and women-owned businesses receiving loans through eligible fund managers.
Eligible fund managers managing funds for small, minority, and women-owned business accounts.

Terms To Know

eligible fund manager: An entity with significant financial or investment experience that the Department of Commerce designates to manage funds for small, minority, and women-owned businesses.
management fee: A percentage-based fee taken from loans given to small, minority, and women-owned businesses by eligible fund managers.

Limits and Unknowns

The act does not specify how the Department of Commerce will determine which entities are eligible fund managers.
It is unclear what specific administrative purposes management fees can be used for beyond lending activities.

Amendments

These notes stay tied to the official amendment files and metadata from the legislature.

373229/1

None

Favorable with Amendments { 373229/1 Adopted

Plain English: AMENDMENT TO SENATE BILL 920 (First Reading File Bill) On page 2, in line 10, strike “OR IN LIEU OF”.

AMENDMENT TO SENATE BILL 920 (First Reading File Bill) On page 2, in line 10, strike “OR IN LIEU OF”.
SB0920/373229/1 BY: Finance Committee

Bill History

2026-05-12 Post Passage
Approved by the Governor - Chapter 392
2026-04-08 House
Favorable Report by Economic Matters
2026-03-31 House
Third Reading Passed (123-13)
2026-03-26 Senate
Returned Passed
2026-03-21 House
Favorable Adopted
2026-03-21 House
Second Reading Passed
2026-03-16 Senate
Favorable with Amendments Report by Finance
2026-03-07 House
Referred Economic Matters
2026-03-03 Senate
Third Reading Passed (45-0)
2026-03-01 Senate
Favorable with Amendments { 373229/1 Adopted
2026-03-01 Senate
Second Reading Passed with Amendments
2026-02-12 Senate
Hearing 3/05 at 1:00 p.m.
2026-02-06 Senate
First Reading Finance
Maryland General Assembly
Text - First - Economic Development - Small, Minority, and Women-Owned Business Accounts - Management Fees (Small Business Increased Access to Capital Act)
Maryland General Assembly
Vote - Senate - Committee - Finance
Maryland General Assembly
Text - Third - Economic Development - Small, Minority, and Women-Owned Business Accounts - Management Fees (Small Business Increased Access to Capital Act)
Maryland General Assembly
Vote - House - Committee - Economic Matters
Maryland General Assembly
Text - Chapter - Economic Development - Small, Minority, and Women-Owned Business Accounts - Management Fees (Small Business Increased Access to Capital Act)

Official Summary Text

Authorizing the Department of Commerce to authorize an eligible fund manager to receive, use, and retain a certain management fee; and authorizing the Department to set an annual cap on the cumulative amount of certain management fees an eligible fund manager may receive.

Current Bill Text

Read the full stored bill text

EXPLANATION: CAPITALS INDICATE MATTER ADDED TO EXISTING LAW.
[Brackets] indicate matter deleted from existing law.
Underlining indicates amendments to bill.
Strike out indicates matter stricken from the bill by amendment or deleted from the la w by
amendment.
*sb0920*

SENATE BILL 920
C8 6lr2912
CF HB 798
By: Senators Harris, Charles, and Muse
Introduced and read first time: February 6, 2026
Assigned to: Finance
Committee Report: Favorable with amendments
Senate action: Adopted
Read second time: March 1, 2026

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 managem ent 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

BY repealing and reenacting, with amendments, 15
Article – Economic Development 16
Section 5–1501(g) 17
Annotated Code of Maryland 18
(2024 Replacement Volume and 2025 Supplement) 19

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 20
That the Laws of Maryland read as follows: 21

2 SENATE BILL 920

Article – Economic Development 1

5–1501. 2

(a) In this section, “eligible fund manager” means: 3

(1) an entity that has significant financial or investment experience, under 4
criteria developed by the Department; and 5

(2) includes an entity that the Department designates to manage funds 6
received under subsection (c)(1) of this section. 7

(g) (1) Subject to paragraph (2) of this subsection, an eligible fund manager 8
may use money from grants received under this section to pay expenses for administrative, 9
actuarial, legal, and technical services. 10

(2) The Department shall set the maximum amount of grant money that 11
each eligible fund manager may use under paragraph (1) of this subsection. 12

(3) (I) IN ADDITION TO OR IN LIEU OF THE AMOUNT AUTHORIZED 13
UNDER PARAGRAPH (2) OF THIS SUBSECTION, THE DEPARTMENT MAY AUTHORIZE 14
AN ELIGIBLE FUND MAN AGER TO RECEIVE A MA NAGEMENT FEE THAT IS 15
CALCULATED AS A PERC ENTAGE OF EACH LOAN MADE UNDER SUBSECTION (D) OF 16
THIS SECTION. 17

(II) THE PERCENTAGE AUTHORIZED UNDER SUBPARAGRAPH (I) 18
OF THIS PARAGRAPH MAY NOT BE LESS THAN 1.5% AND MAY NOT EXCEED 3% OF THE 19
TOTAL LOAN PRINCIPAL. 20

(III) A MANAGEMENT FEE AUTHO RIZED UNDER THIS 21
PARAGRAPH SHALL BE P AID FROM THE ACCOUNT AND MAY BE RE TAINED BY AN 22
ELIGIBLE FUND MANAGER FOR ADMINISTRATIVE PURPOSES RELATED TO LENDING 23
ACTIVITIES UNDER SUBSECTION (D) OF THIS SECTION. 24

(4) THE DEPARTMENT MAY ESTABL ISH AN ANNUAL CAP ON THE 25
CUMULATIVE AMOUNT OF MANAGEMENT FEES A N ELIGIBLE FUND MANA GER MAY 26
RECEIVE UNDER PARAGRAPHS (2) AND (3) OF THIS SUBSECTION. 27

SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect July 28
1, 2026. 29