Md. Code Regs. 05.13.05.03

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

Section 05.13.05.03 - Eligible Loans

A. A loan is eligible under the Program if the loan:

(1) Is made by a financial institution that is eligible to participate in the Program under Regulation .04B of this chapter;

(2) Meets the financial institution's lending criteria;

(3) Has a term not exceeding 10 years;

(4) Is made to a certified minority business enterprise or a small business that will use the proceeds for a project or activity primarily located in Maryland;

(5) Has an interest rate that is lower than the interest rate the financial institution would charge for a loan for a similar purpose and term by at least:

(a) 2 percentage points; or

(b) The difference between the financial institution's rate on a 60-month certificate of deposit and the interest rate acceptable to the Treasurer's Office for its deposits;

(6) Does not exceed $1,000,000 when added to any other loans the borrower received under the Program;

(7) Has points or fees charged by the financial institution at closing not exceeding 1 percent of the loan amount; and

(8) Complies with all terms and conditions of this chapter.

B. The proceeds of a Program loan may not be used:

(1) For the furtherance of sectarian religious instruction;

(2) In connection with the design, acquisition, or construction of any building used or to be used as a place of sectarian religious worship or instruction; or

(3) In connection with any program or department of divinity for any religious denomination, including but not limited to religious services, religious instruction, or other activities that have an explicitly religious purpose.

Md. Code Regs. 05.13.05.03

Regulation .03A amended effective 41:17 Md. R. 970, eff.9/1/2014