1. (a) A project qualifies as a business project if the project is:

   1. (1) located in:

      1. (i) an area designated as a priority funding area under § 5-7B-02 of the State Finance and Procurement Article; or
      2. (ii) a qualified opportunity zone designated under § 1400Z-1 of the Internal Revenue Code in Allegany County, Baltimore City, Baltimore County, Charles County, Garrett County, Howard County, Montgomery County, Prince George's County, Somerset County, or Wicomico County; and

   2. (2)

      1. (i) acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved by a person or an entity for the purposes of carrying on a business whether or not for profit; or
      2. (ii) eligible for funding from the Neighborhood Business Development Fund under § 6-310 of this article.

2. (b) Repayment of principal and interest for a business project may be secured by:

   1. (1) real property;
   2. (2) personal property;
   3. (3) bank accounts;
   4. (4) certificates of deposit, stocks, and bonds;
   5. (5) credit enhancement, assurance, or guaranty; or
   6. (6) any other collateral acceptable to the Administration.

3. (c) Financial assistance for a business project may be provided as:

   1. (1) a loan;
   2. (2) a reduction in the principal obligation of or interest rate on a loan or portion of a loan;
   3. (3) a prepayment of interest on a subordinate or superior loan or portion of a loan;
   4. (4) an assurance;
   5. (5) a guarantee or other form of credit enhancement; or
   6. (6) a promissory note that may be converted to an equity ownership interest and liquidated at the earliest opportunity to realize the highest market value for the Administration.

<Section effective until July 1, 2026. See, also, section 4-223 effective July 1, 2026.>

Added by Acts 2016, c. 482, § 2, eff. July 1, 2016. Amended by Acts 2019, c. 211, § 3, eff. July 1, 2019; Acts 2022, c. 380, § 1, eff. July 1, 2022.