// EFFECTIVE UNTIL JUNE 30, 2029 PER CHAPTER 485 OF 2022 //

(a) (1) In this section the following words have the meanings indicated.

(2) “Covered individual” means an individual who:

(i) has been convicted of a criminal offense;

(ii) 1. has completed a term of imprisonment in federal prison or a State or local correctional facility; or

2. is approved for release by a correctional facility for the purpose of participating in a training program; and

(iii) meets the offense eligibility requirements set forth in any applicable policy notice or other guidance issued by the Small Business Administration for the federal microloan program established under 15 U.S.C. § 636(m).

(3) “Program” means the Maryland New Start Grant Program.

(b) (1) There is a Maryland New Start Grant Program in the Department.

(2) The Department shall administer the Program.

(c) The purpose of the Program is to provide grants to organizations to create or support existing entrepreneurship development programs to provide assistance to covered individuals.

(d) (1) As provided in the budget, the Department shall make grants in accordance with this subsection to at least five eligible organizations.

(2) (i) An organization may apply for a grant under the Program.

(ii) An organization may partner with another organization for purposes of applying for a grant under the Program and conducting entrepreneurial development programming.

(iii) An application for a grant under the Program shall:

1. demonstrate strong community ties, including those with the covered individual community and local businesses;

2. demonstrate an ability to provide a full range of entrepreneurial development programming on an ongoing basis;

3. include a plan for reaching covered individuals, including by identifying particular target populations within the community;

4. clearly define entrepreneurial development capabilities, including coordination with existing local resource partners of the Department for additional training as necessary;

5. present an entrepreneurship development curriculum, which may be a nationally recognized model or based on a nationally recognized model;

6. include a list of each partner organization; and

7. include a comprehensive plan for the use of grant funds, including estimates for administrative and outreach costs of running and evaluating the entrepreneurship development program.

(iv) The Department may provide specific additional eligibility and application requirements for a grant under the Program.

(3) An entrepreneurship development program for covered individuals implemented under the Program shall include:

(i) a business plan competition for imprisoned individuals;

(ii) reentry services, including a work-readiness program;

(iii) executive mentoring with local business owners;

(iv) entrepreneurial training; and

(v) in accordance with Title 5, Subtitle 19 of the Economic Development Article, access to financing.

(4) In determining whether to award a grant under the Program, the Department may give priority to an application submitted in accordance with subsection (c) of this section based on:

(i) whether the application includes a commitment from an existing or new non-State funding source to meet the matching requirement under subsection (e) of this section;

(ii) whether the application takes into account local economies and markets as a part of the educational component of the entrepreneurship development program; and

(iii) the ability or plan of the applicant to provide entrepreneurial development services concurrent with employment or job training services.

(e) (1) As a condition of a grant provided under the Program, the Department shall require the recipient of the grant to contribute an amount equal to 25% of the amount of the grant, obtained solely from existing or new non-State sources.

(2) In addition to cash or other direct funding, the contribution required under paragraph (1) of this subsection may include indirect costs or in-kind contributions paid for under non-State programs.

(f) (1) In each of fiscal years 2024, 2025, 2026, 2027, and 2028, the Governor shall include in the annual budget bill an appropriation of at least $200,000 for the Program.

(2) The Department may not utilize more than 10% of the money appropriated for the Program for administrative costs.

(g) (1) Subject to paragraph (2) of this subsection, an organization awarded a grant by the Department under the Program shall submit an annual report to the Department on the use of grant funds received under the Program.

(2) The report required under paragraph (1) of this subsection shall contain, with respect to the entrepreneurship development program created or supported by the organization under the Program:

(i) a list of other organizations, if any, with which the person has partnered to conduct an entrepreneurial development program;

(ii) the characteristics of covered individuals assisted under the entrepreneurship development program, including the race and ethnicity, gender, age, marital status, parental status, employment status, income, banking and credit history, and prior business experience of the individuals;

(iii) the participation and attendance rates for all components of the entrepreneurship development program;

(iv) the program retention rate;

(v) the percentage of participants who have not been charged with a new criminal violation or a violation of a condition of parole or probation during the calendar year of the program;

(vi) the level of the covered individuals’ understanding of business concepts and principles;

(vii) the level of the covered individuals’ greater confidence in leadership strengths, including the results of an industry-recognized behavioral assessment;

(viii) the progress made by covered individuals toward establishing a business;

(ix) the experiences and perceptions of the covered individuals;

(x) the number and dollar amount of loans made to qualified covered individuals; and

(xi) any additional information that the Department may require.

(h) On or before January 1, 2029, the Department shall report to the Governor and, in accordance with § 2-1257 of the State Government Article, the General Assembly on:

(1) the funds included in the State budget and appropriated for the Program for each fiscal year during the life of the Program;

(2) the services that grant recipients provided to covered individuals assisted under entrepreneurship development programs;

(3) oversight of the program by the Department, including policies and procedures for monitoring the compliance by grant recipients with Program requirements and an assessment of the effectiveness of the Program; and

(4) the overall performance of the Program and the impacts of the Program on grant recipients.

(i) The Department shall adopt regulations necessary to carry out this section.