# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 13 — Neighborhood Business Development

### Chapter 04 — Capital Access Program

#### Regulation .09 Eligible Borrowers.

*COMAR 05.13.04.09*

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.