By: Nicholas Sohr

Tucked into the raft of economic development and job creation initiatives on the table this year in Annapolis is a relatively innocuous looking bill that would shake up a small business loan program run by the Department of Business and Economic Development.

DBED, in legislation introduced in the Senate, is shift oversight the Maryland Economic Adjustment Fund and broaden the scope of the program.

The fund was created in 1994 to give loans to small businesses – primarily defense contractors – that were negatively affected by military base closures and realignments. It was administered by a commission appointed by the DBED secretary.

“It’s a critical part of our efforts to make sure that we help small businesses grow and be successful,” said Secretary Christian Johansson.

The fund has about $450,000, but DBED is seeking up to $5 million more from the federal government.

Under the changes submitted by DBED, control of the fund would shift from the commission to the secretary or other DBED officials he appoints. The loans would also be available to a wider range of small businesses because the defense provisions would be stripped out.

Members of the Senate Finance Committee questioned taking control of the fund out of the hands of the commission, which would be required to open its meetings to the public.

Ellen Valentino, Maryland director for the National Federation of Independent Business, said after the hearing she thought the changes to the program need “to be tightened up.”

“The merit of the fund seems to be well-intentioned,” she said. “The oversight seems a little loose.”