Md. Code Regs. 24.05.18.07

Current through Register Vol. 51, No. 22, November 1, 2024

Section 24.05.18.07 - Additional Requirements for Loans Made with Restricted Funds

A. Federal Requirements. When loans are made from EDA funds made available under Title IX of the Public Works and Economic Development Act of 1965, P. L. 89-136, as amended (42 U.S.C. § 3121 et seq.), or matching funds, the requirements set forth in the EDA regulations, including those set forth in this regulation, also apply.

B. Loan Amount. The maximum loan amount may not exceed the limit set by the regulations of the Economic Development Administration.

C. Eligible Areas.

(1) Restricted funds shall be used to make loans only to applicants located in those areas of the State designated as eligible areas for EDA Title IX defense economic adjustment activities.

(2) When restricted funds are loaned, the loan documents shall include a provision to call the loans if the economic activity financed is moved outside the eligible lending area.

D. Relocation.

(1) Restricted funds may not be used to relocate jobs from one commuting area to another.

(2) When restricted funds are loaned, the loan documents shall include a provision to call the loans if the Department determines that:

(a) The applicant used the restricted funds to relocate jobs from another commuting area; or

(b) The economic activity financed is moved to another commuting area to the detriment of local workers.

E. Civil Rights. When restricted funds are loaned, the applicant shall agree in the loan documents not to discriminate against employees, applicants for employment, or providers of goods and services.

F. Flood Hazard Insurance. Where applicable, the applicant shall obtain flood hazard insurance pursuant to the Flood Disaster Protection Act of 1973, P. L. 93-234, as amended (42 U.S.C. § 4002 et seq.)

G. Contract Work Hours and Safety Standards Act and Anti-Kickback Act. Applicants borrowing restricted funds shall comply, where applicable, with the Contract Work Hours and Safety Standards Act, as amended ( 40 U.S.C. §§ 327 - 333) and with the Anti-Kickback Act, as amended ( 40 U.S.C. § 276(c), 18 U.S.C. § 874).

H. Conflict of Interest. Applicants with a conflict of interest, as defined by EDA, may not receive restricted funds.

I. Federal Debarment. Applicants who are debarred or suspended may not receive restricted funds.

J. Restrictions on Lobbying. Applicants shall comply with federal restrictions on lobbying.

K. Private Leveraging. Applicants shall be required to provide evidence acceptable to the Department of other financing from private sources.

Md. Code Regs. 24.05.18.07