MD SB1008

Removes the requirement that Small Business Guaranty Fund guarantees be backed by the full faith and credit of Maryland, replacing it with authority for the Maryland Small Business Development Financing Authority to approve guarantees in alternative forms

Authorizes guarantees to be issued as irrevocable letters of credit, official treasurer's checks, funds in escrow or depository accounts, or other legal instruments promising restitution for loan losses

Prohibits terms and conditions on these guarantee instruments from being so onerous as to discourage financial institutions from offering loans

Retains existing program parameters: guarantees cover up to 80% of principal and interest on loans of $5,000 or more, with maximum Authority liability of $2,000,000 per guaranty

Takes effect October 1, 2025