Bill Positions

Bill Number: SB 54

Bill Title: Business and Economic Development - Maryland Economic Adjustment Fund

Bill Sponsor(s): Ch. Finance (Dept. DBED)

Subject: Budget & Taxation

Committee: FIN

Bill Summary: As Defense Department downsizing is not a current concern, this bill would expand the eligible purpose of the MD Economic Adjustment Fund to a statewide loan program for businesses with 50 or fewer employees. Loans would be approved and administered directly by the Department, rather than a committee appointed by the DBED Secretary.

History: The MD Economic Adjustment Fund was created in 1994 as a revolving fund to make loans to companies in communities suffering dislocation due to defense adjustments. The program has been used to provide loans to about 8 small businesses annually to modernize their operations, develop commercial applications for technology, or enter into new markets. Applicants must demonstrate that financing was not available through normal lending channels.

Chamber Position: Support

Position Summary: The Chamber supports reorganizing the Maryland Economic Adjustment Fund because the state has pressing needs for small business loans on a statewide basis. Maryland must now cope with the pressures of BRAC growth, rather than defense downsizing.

Position Statement: To view the Chamber's complete position statement, click here (pdf).

Chamber Staff: Ronald Wineholt

General Assembly: Click here to view the bill on the Maryland General Assembly's website.