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§ 6-305. Business Development Program--Financial assistance for small businesses

West's Annotated Code of MarylandHousing and Community DevelopmentEffective: July 1, 2022

West's Annotated Code of Maryland
Housing and Community Development (Refs & Annos)
Division I. Housing and Community Programs [Titles 1-11] (Refs & Annos)
Title 6. Division of Neighborhood Revitalization (Refs & Annos)
Subtitle 3. Neighborhood Business Development Program (Refs & Annos)
Effective: July 1, 2022
MD Code, Housing & Community Development, § 6-305
§ 6-305. Business Development Program--Financial assistance for small businesses
Currentness
In general
(a)(1) A small business, nonprofit organization, or microenterprise may apply for financial assistance under the Business Development Program.
(2) The Department shall review each application.
Qualifications
(b) An applicant may qualify for financial assistance for a project in a priority funding area or an eligible opportunity zone if the application demonstrates that:
(1) the financial assistance from the Fund is the minimum amount necessary to make the project financially feasible;
(2) the project is ready to proceed when it receives financial assistance from the Business Development Program; and
(3) any food desert project includes a plan to seek out sources of Maryland-grown produce and Maryland produced foods.
Notice; approval by political subdivision
(c)(1) The Department shall provide written notice to the political subdivision in which the proposed project is located.
(2) Except as provided in paragraph (3) of this subsection, the Department may not approve an application unless the political subdivision in which the proposed project is located approves the application by:
(i) resolution; or
(ii) letter, delivered to the Department by the political subdivision's authorized designee, expressing support of the plan or project.
(3) If the Department does not receive notice of approval or denial of an application from the affected jurisdictions within 45 days after notice of the proposed project is given in accordance with paragraph (1) of this subsection, the Department may approve the application.
Forms of financial assistance
(d) Financial assistance under the Business Development Program may be provided to a small business, nonprofit organization, or microenterprise as:
(1) a grant;
(2) a loan;
(3) a reduction in the principal obligation of or interest rate on a loan or portion of a loan;
(4) a prepayment of interest on a subordinate or superior loan or portion of a loan;
(5) an assurance;
(6) a guarantee;
(7) any other form of credit enhancement; or
(8) a promissory note that may be converted to an equity ownership interest and liquidated at the earliest opportunity to realize the highest market value for the Department.
Required reserve
(e)(1) The Department shall reserve at least the lesser of $5,000,000 or the annual capital appropriation for the Fund to make financial assistance available to projects located in sustainable communities.
(2) The Department may meet the funding obligations for sustainable communities and food deserts by using any financial assistance available to the Department that is authorized to be used for these projects.

Credits

Added as Housing and Community Development § 6-306 by Acts 2005, c. 26, § 2, eff. Oct. 1, 2005. Amended by Acts 2010, c. 118, § 1, eff. Oct. 1, 2010. Renumbered as Housing and Community Development § 6-305 and amended by Acts 2010, c. 487, § 1, eff. June 1, 2010. Amended by Acts 2012, c. 719, § 1, eff. June 1, 2012; Acts 2014, c. 228, § 1, eff. Oct. 1, 2014; Acts 2016, c. 8, § 1, eff. March 14, 2016; Acts 2016, c. 482, § 2, eff. July 1, 2016; Acts 2017, c. 636, § 1, eff. Oct. 1, 2017; Acts 2019, c. 211, § 3, eff. July 1, 2019; Acts 2022, c. 380, § 1, eff. July 1, 2022.
MD Code, Housing & Community Development, § 6-305, MD HOUS & CMTY DEV § 6-305
Current through legislation effective through May 9, 2024, from the 2024 Regular Session of the General Assembly. Some statute sections may be more current, see credits for details.
End of Document