§ 27-6 Equity investments and loans.
Published by the Baltimore City Department of Legislative Reference.
Balt., Md., Pub. Local Laws § 27-6 (2026)
§ 27-6 Equity investments and loans.LinkCopy Citation
(a)Enterprise investments or loans authorized.
To implement the Program, the City may make an equity investment in or a loan to an enterprise, provided that the City in its sole and absolute discretion determines that such equity investment or loan will:
(1)
provide working capital to the enterprise or be used by the enterprise to purchase machinery or equipment; and
(2)
assist in the establishment or growth of an enterprise and likely result in the establishment or expansion of manufacturing, office, research or related activities in the City.
(b)Conditions.
Any equity investment or loan made pursuant to paragraph (a):
(1)
shall be made only to and for the benefit of an enterprise; and
(2)
shall be upon the terms and conditions as the City in its sole and absolute discretion may prescribe, provided that:
(i)
if a loan is made from the proceeds of a bond issue, the loan may not bear interest at a rate that would cause the bonds to be “arbitrage bonds” within the meaning of Section 103(c) of the Internal Revenue Code of 1954, as amended, or any successor provision; and
(ii)
a loan shall mature at a date no later than 10 years following the date on which the first funds are advanced to the enterprise.
(c)Fees.
The City may establish fees in an amount calculated to cover the administrative expense of making the equity investment or the loan.
(d)Discretion to combine loans, investments, guarantees, etc.
The City may make an equity investment in or a loan to an enterprise pursuant to <cite data-path="27|§27-6">this section</cite> or may guarantee a loan made by a private lender to an enterprise or procure a third party to guarantee a loan to an enterprise pursuant to <cite data-path="27|§27-7">Section 27-7</cite> in any combination which the City, in its sole and absolute discretion, deems appropriate.