Section 6-308.1 - Microenterprise loan program. - Maryland Statutes

§ 6-308.1. Microenterprise loan program.
 

(a)  In general.- If the Department determines that an entity is capable of administering a microenterprise loan program, the entity may originate and administer loans to microenterprises in accordance with standards the Department adopts by regulation. 

(b)  Regulations and standards.-  

(1) The Department shall adopt regulations to establish standards for determining the eligibility of an entity to administer a microenterprise loan program. 

(2) The standards shall include provisions on: 

(i) the size, training, and experience of the professional staff that would administer the program; and 

(ii) the capability of the professional staff to: 

1. determine financial capacity of a borrower; 

2. originate a loan; and 

3. evaluate applications for program loans. 

(c)  Powers of Department.- The Department may: 

(1) help train employees of an approved entity to administer a microenterprise loan program in accordance with standards that the Department adopts; 

(2) charge and collect from a borrower: 

(i) reasonable origination, application, and processing fees; and 

(ii) other charges, fees, or reimbursements incidental to microenterprise loans; 

(3) include the fees and charges listed in item (2) of this subsection in the loan amount; 

(4) pay an approved entity a reasonable origination, application, and processing fee for each loan to a microenterprise that is originated by the approved entity; 

(5) directly fund a loan to a microenterprise that is originated by an approved entity; and 

(6) provide financial assistance to an approved entity for the purpose of the approved entity making a loan to a microenterprise in accordance with this subtitle. 
 

[2010, ch. 118.]