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A bond bill to reimburse the Latino Economic Development Corporation half a million dollars for its new permanent facility in Wheaton died in the House last week, but much to the consternation of three groups who oppose the funding, the Senate approved $175,000 for the nonprofit microloan program.

As the legislative session wrapped up Monday, LEDC executives said the state money is a good start to their five-year $5 million campaign to purchase the one-story building they are currently renting off Price Avenue in downtown Wheaton and build a four-story headquarters at the site.

LEDC will use the building to run its microloan program, foreclosure counseling program and small businesses classes. A grand opening for the building will be held Friday.

However, members from Maryland Citizens First, which advocates for fiscal responsibility, Help Save Maryland, an anti-illegal immigration group, and conservative blogger of the Blue Ridge Forum say legislators need to more thoroughly vet the nonprofit before they give it public funds.

The opponents have argued that LEDC cannot prove that the people it lends to have established a legal presence in Maryland and without full certainty should not receive public funds.

"If the pie is only so big then I want to help American citizens," said Damascus resident Susan Payne, the director of Maryland Citizens First.

Opponents to the bond bill are claiming victory with the dropped House bill.

"We raised enough eyebrows on the House side," said Brad Botwin, the director of Help Save Maryland.

But they still say no taxpayer funds should be spent on an institution that may or may not serve illegal immigrants.

"I don't think it probably should have been approved at all," said Richard Falknor, the lead blogger of the right-wing Blue Ridge Forum, which covers Maryland and Virginia politics.

However, Scott Tsikerdanos, a legislative aide for Sen. Rich Madaleno (D-Dist. 18) of Kensington, lead sponsor of the bond bill in the Senate, said it is not unusual for a bond bill to be dropped in one chamber if there is a similar one in the other chamber, especially if the budget is tight.

Del. Ana Sol Gutierrez (D-Dist. 18) of Chevy Chase, lead sponsors of the bond bill in the House, declined to comment on why the bill was dropped except to say there is "nothing special" about it.

Manuel Hidalgo, the executive director of LEDC, has fired back at his opposition, saying no organization checks the immigration status of its clients unless it is hiring someone.

LEDC gives business loans to Latinos and other low- and moderate-income populations in the Washington, D.C., area. The nonprofit's microloan program is funded in part by the federal Small Business Administration and several local banks.

Payne said she believes LEDC violates SBA policy, which prohibits funding businesses that offer services to people with an unlawful presence in the United States, and has pursued the matter with SBA's inspector general.

However, SBA has determined LEDC is not violating any policy, said Mike Stamler, a spokesman for SBA.

To receive a loan from LEDC, applicants must be up to date on their taxes and provide a credit report, both of which usually require Social Security numbers, Hidalgo said.

That's consistent with SBA policy, Stamler said.

"It appears they're following the rules," he said.

Money for LEDC will be included with other approved items in the capital budget that Gov. Martin O'Malley (D) will review in the coming month.