Md. Code Regs. 14.04.02.04

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

Section 14.04.02.04 - Eligibility

A. Eligibility Criteria. Except as provided in §C of this regulation, TEDCO may invest in an applicant if TEDCO determines the applicant meets all of the following criteria:

(1) The applicant is a technology-based business;

(2) Except for applicants applying for investment under COMAR 14.04.09, over half of the applicant's workforce works at and from a physical location in the State;

(3) An applicant's principal business operations are conducted from a physical location in the State;

(4) The applicant agrees to execute a securities repurchase agreement or an equivalent commitment, each with a duration of five years, subject to the terms determined by TEDCO and in the form approved by the Office of the Attorney General;

(5) The applicant agrees to use the investment primarily to:

(a) Support business operations in the State; or

(b) In the case of a start-up business, establish and support business operations in the State;

(6) The applicant employs not more than 250 employees;

(7) The applicant is not primarily engaged in retail sales, real estate development, insurance, banking, or lending;

(8) The applicant is not primarily engaged in the provision of professional services by accountants, attorneys, or physicians; and

(9) Other eligibility criteria for each investment program under COMAR 14.04.03-.06 and .09;

B. Qualified Business Information. Except as required under §C of this regulation, in order to be considered for an investment by TEDCO, an applicant shall submit to TEDCO a written application in accordance with Regulation .05 of this chapter with sufficient information for TEDCO to establish eligibility under §A of this regulation, including:

(1) Except for applicants applying for investment under COMAR 14.04.09, the total number of the applicant's founders and employees and the number of the applicant's founders and employees working in the State;

(2) The address of the applicant's principal business operations in the State and a copy of the lease, license agreement, deed, or other document that evidences the applicant's right to occupy the physical location of the principal business operations;

(3) Addresses of all the physical locations of the applicant; and

(4) Any other information required by TEDCO as necessary to establish that the applicant is a qualified business.

C. Substantial Economic Impact Information. In lieu of the information provided in §B(1)-(3) of this regulation, the applicant may submit to TEDCO information that the applicant's business will have a substantial economic impact in the State as set forth in COMAR 14.04.07. After reviewing information submitted by an applicant under this section, TEDCO may request additional information or conduct its own investigation of the applicant's potential for substantial economic impact in the State. In its sole discretion, TEDCO may submit information provided under this section to the Investment Committee for its consideration. This section does not apply to applicants applying for investment under COMAR 14.04.09.

D. Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an investment.

E. State Small Business Credit Initiative Funds. All investments using proceeds allocated under the federal State Small Business Credit Initiative shall comply with 12 U.S.C. 5701 et seq., as amended.

Md. Code Regs. 14.04.02.04

Regulation .04 adopted effective 46:26 Md. R. 1167, eff. 12/30/2019; amended effective 50:18 Md. R. 800, eff. 9/18/2023