This bill creates the Small-cap Loan Guarantee Program, through which the State provides loan guarantees to investors and developers for small-cap projects. A small-cap project is an affordable housing or low-income housing construction or rehabilitation project with a value of $1,000,000 or less. Under the bill, affordable housing is housing that is affordable to a household with an income at or below 80% of the area median income, as defined by the United States Department of Housing and Urban Development, and low-income housing is housing specifically designed to serve a household with an income at or below 60% of the area median income, as defined by the United States Department of Housing and Urban Development. The program is administered by the Maine State Housing Authority or an organization contracted by the Maine State Housing Authority to administer the program and funded by application fees based upon the amount and risk assessed of each loan guaranteed by the program.