# COMAR Title 05 — Department of Housing and Community Development

## Subtitle 13 — Neighborhood Business Development

### Chapter 05 — Linked Deposit Program

#### Regulation .03 Eligible Loans.

*COMAR 05.13.05.03*

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.