1. A. An applicant shall meet the following minimum requirements to be an eligible borrower for loans made under the Program:

   1. (1) Be in good standing and qualified to do business in Maryland;
   2. (2) Be a small business;
   3. (3) Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; and
   4. (4) Not be a government entity, including without limitation a local housing authority.

2. B. A borrower shall meet the following minimum requirements:

   1. (1) The borrower shall be authorized to conduct business in the State as:

      1. (a) A corporation,
      2. (b) A limited liability company,
      3. (c) A partnership,
      4. (d) A joint venture,
      5. (e) A sole proprietorship,
      6. (f) A cooperative, or
      7. (g) Another form of business entity;
   2. (2) The borrower shall be a for-profit or nonprofit small business; and

   3. (3) The borrower may not be:

      1. (a) An executive officer, a director, or a principal shareholder of the lender,
      2. (b) A member of the immediate family of a person described in §B(3)(a) of this regulation, or
      3. (c) An entity controlled by a person described in §B(3)(a) or (b) of this regulation.

Authority: Housing and Community Development Article, §§2-102 and 4-504, and Title 6, Subtitle 3, Annotated Code of Maryland

Effective date: December 25, 2000 (27:25 Md. R. 2279)

Regulation .03B amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .11C amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .12B amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .17A amended effective June 19, 2006 (33:12 Md. R. 996)

Regulation .25 amended effective March 16, 2015 (42:5 Md. R. 485)