Md. Code Regs. 05.13.04.09

Current through Register Vol. 51, No. 24, December 2, 2024

Section 05.13.04.09 - Eligible Borrowers

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

(1) Be in good standing and qualified to do business in Maryland;

(2) Be a small business;

(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) Not be a government entity, including without limitation a local housing authority.

B. A borrower shall meet the following minimum requirements:

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

(a) A corporation,

(b) A limited liability company,

(c) A partnership,

(d) A joint venture,

(e) A sole proprietorship,

(f) A cooperative, or

(g) Another form of business entity;

(2) The borrower shall be a for-profit or nonprofit small business; and

(3) The borrower may not be:

(a) An executive officer, a director, or a principal shareholder of the lender,

(b) A member of the immediate family of a person described in §B(3)(a) of this regulation, or

(c) An entity controlled by a person described in §B(3)(a) or (b) of this regulation.

Md. Code Regs. 05.13.04.09