AN ACT TO AMEND TITLE 29 OF THE DELAWARE CODE RELATING TO MICROBUSINESSES.

This bill creates a new loan guarantee program in Delaware to help small businesses with fewer than five employees and annual revenue under $1 million that lack the funds to start or grow. The state will guarantee up to 90% of loans provided by community development financial institutions or other approved lenders, with individual loan amounts capped at $100,000 and repayment terms extending up to 10 years. To assist borrowers, the program includes features like deferred initial payments for up to two years and interest rates limited to the Federal Funds Rate plus 3%, while also offering access to education, training, and mentoring. The initiative is administered by the Delaware Division of Small Business and becomes effective once funding is allocated to the new Microbusiness Loan Fund.