Regulation .09 Eligible Borrowers.
Regulation .09 Eligible Borrowers.LinkCopy Citation
A.
An applicant shall meet the following minimum requirements to be an eligible borrower for loans made under the Program:
(1)
Be in good standing and qualified to do business in Maryland;
(2)
Be a small business;
(3)
Have the legal capacity and all necessary legal authority to incur the obligations involved in the form of financial assistance provided under the Program; and
(4)
Not be a government entity, including without limitation a local housing authority.
B.
A borrower shall meet the following minimum requirements:
(1)
The borrower shall be authorized to conduct business in the State as:
(a)
A corporation,
(b)
A limited liability company,
(c)
A partnership,
(d)
A joint venture,
(e)
A sole proprietorship,
(f)
A cooperative, or
(g)
Another form of business entity;
(2)
The borrower shall be a for-profit or nonprofit small business; and
(3)
The borrower may not be:
(a)
An executive officer, a director, or a principal shareholder of the lender,
(b)
A member of the immediate family of a person described in §B(3)(a) of this regulation, or
(c)
An entity controlled by a person described in §B(3)(a) or (b) of this regulation.