Regulation .03 Eligible Loans.
Regulation .03 Eligible Loans.LinkCopy Citation
A.
A loan is eligible under the Program if the loan:
(1)
Is made by a financial institution that is eligible to participate in the Program under Regulation .04B of this chapter;
(2)
Meets the financial institution's lending criteria;
(3)
Has a term not exceeding 10 years;
(4)
Is made to a certified minority business enterprise or a small business that will use the proceeds for a project or activity primarily located in Maryland;
(5)
Has an interest rate that is lower than the interest rate the financial institution would charge for a loan for a similar purpose and term by at least:
(a)
2 percentage points; or
(b)
The difference between the financial institution’s rate on a 60-month certificate of deposit and the interest rate acceptable to the Treasurer’s Office for its deposits;
(6)
Does not exceed $1,000,000 when added to any other loans the borrower received under the Program;
(7)
Has points or fees charged by the financial institution at closing not exceeding 1 percent of the loan amount; and
(8)
Complies with all terms and conditions of this chapter.
B.
The proceeds of a Program loan may not be used:
(1)
For the furtherance of sectarian religious instruction;
(2)
In connection with the design, acquisition, or construction of any building used or to be used as a place of sectarian religious worship or instruction; or
(3)
In connection with any program or department of divinity for any religious denomination, including but not limited to religious services, religious instruction, or other activities that have an explicitly religious purpose.