Md. Code Ann., Econ. Dev. § 10-4A-17
Classification of business as qualified business
Effective Oct 1, 2020Added as Economic Development § 6-519 by Acts 2011, c. 409, § 1, eff. July 1, 2011. Renumbered as Economic Development § 10-489 and amended by Acts 2015, c. 141, § 2, eff. Oct. 1, 2015. Amended by Acts 2019, c. 487, § 1, eff. June 1, 2019; Acts 2019, c. 488, § 1, eff. June 1, 2019. Renumbered as Economic Development § 10-4A-17 by Acts 2020, c. 580, § 1, eff. Oct. 1, 2020.State of Maryland
(a)
- (1) A business that is classified as a qualified business at the time of the first investment in the business by a venture firm, the Enterprise Fund, or the Financing Authority remains classified as a qualified business and may receive follow-on investments from a venture firm, the Enterprise Fund, or the Financing Authority as provided under this subsection.
- (2) A follow-on investment from a venture firm is a qualified investment even though the business does not meet the definition of a qualified business at the time of the follow-on investment.
- (3) With respect to an investment by the Enterprise Fund or the Financing Authority, a follow-on investment does not qualify as a qualified investment if, at the time of the follow-on investment, the business no longer meets the definition of a qualified business.
- (b) Each venture firm shall inform the Corporation in writing when the venture firm requires designated capital for investment or for the payment of approved fees and expenses.
Added as Economic Development § 6-519 by Acts 2011, c. 409, § 1, eff. July 1, 2011. Renumbered as Economic Development § 10-489 and amended by Acts 2015, c. 141, § 2, eff. Oct. 1, 2015. Amended by Acts 2019, c. 487, § 1, eff. June 1, 2019; Acts 2019, c. 488, § 1, eff. June 1, 2019. Renumbered as Economic Development § 10-4A-17 by Acts 2020, c. 580, § 1, eff. Oct. 1, 2020.