1. A. The proceeds of the equity investment may be used for the purposes approved by the Director, which include, but are not limited to:

   1. (1) Working capital;
   2. (2) Salaries;
   3. (3) Marketing materials;
   4. (4) Acquisition of inventory, equipment, or real property;
   5. (5) Construction;
   6. (6) Renovation;
   7. (7) Leasehold improvements; or
   8. (8) Research and development.
2. B. The amount of an equity investment shall be in a range of $20,000 to $100,000 per enterprise, unless a greater amount is authorized by the Secretary.
3. C. The Department may not acquire an ownership interest exceeding 25 percent of any enterprise.
4. D. The terms of an equity investment approved by the Director shall be set forth in a funding agreement.

5. E. At the Director's discretion, a funding agreement may consist of:

   1. (1) An investment agreement;
   2. (2) A limited partnership agreement;
   3. (3) A preferred stock purchase agreement; or
   4. (4) Other documents the Program may require.
6. F. The Department shall divest itself of any enterprise in which an equity investment is made within 15 years after the Department's investment.

Authority: Economic Development Article, §2-108, Annotated Code of Maryland

Effective date: August 29, 1994 (21:17 Md. R. 1440)