Section 6-305 - Business Development Program - Financial assistance for small businesses. - Maryland Statutes

§ 6-305. Business Development Program - Financial assistance for small businesses.
 

(a)  In general.-  

(1) A small business, nonprofit organization, or microenterprise may apply for financial assistance under the Business Development Program. 

(2) The Department shall review each application. 

(b)  Qualifications.- An applicant may qualify for financial assistance for a project in a sustainable community if the application demonstrates that: 

(1) except for a microenterprise project, the project has significant commitments for financing from other private and nonstate public sources that are sufficient to complete the project with the money from the Fund; 

(2) the financial assistance from the Fund is the minimum amount necessary to make the project financially feasible; 

(3) the project is ready to proceed when it receives financial assistance from the Business Development Program; and 

(4) the political subdivision has adopted a resolution, or its authorized designee has delivered a letter to the Business Development Program, that expresses support for the project. 

(c)  Forms of financial assistance.- Financial assistance under the Business Development Program may be provided to a small business, nonprofit organization, or microenterprise as: 

(1) a grant; 

(2) a loan; 

(3) a reduction in the principal obligation of or interest rate on a loan or portion of a loan; 

(4) a prepayment of interest on a subordinate or superior loan or portion of a loan; 

(5) an assurance; 

(6) a guarantee; or 

(7) any other form of credit enhancement. 
 

[An. Code 1957, art. 83B, §§ 4-203(b), 4-204; 2005, ch. 26, § 2; 2010, chs. 118, 487.]