Except as otherwise provided in this subtitle, the following terms have the meanings indicated. Terms Defined. “Act” means Economic Development Article, Title 10, Subtitle 4, Annotated Code of Maryland, and Title 10, Subtitle 4A, Annotated Code of Maryland. “Applicant” means a business that applies for an investment from TEDCO. “Board” means the Board of Directors of TEDCO. “Business” means an enterprise for profit, including a partnership, a limited partnership, a corporation, or a limited liability company. “Bylaws” means the bylaws of TEDCO. Capital Investment. “Capital investment” means an expenditure by a business for the purchase, improvement, or maintenance of a long-term asset providing value for more than a year to enhance the growth potential of the business. “Capital investment” includes land and buildings, construction, improvements, furniture and fixtures, machines, computing, vehicles, software development, software, branding, intellectual property, patents, product development, copyrights, franchise rights, and licenses. “Chief Executive Officer” means the individual who is named as the Chief Executive Officer of TEDCO by the TEDCO Board and employed by TEDCO. Debt. “Debt” means a debt security. “Debt” includes a convertible note. “Economic disadvantage” means the impairment of the ability to compete in the free enterprise system due to social disadvantage resulting in diminished capital and credit opportunities as compared to others in the same or similar line of business, as such term is interpreted under 13 CFR §124.104. “Early-stage business” means a business that: Except for businesses applying for investment under COMAR 14.04.03 and .04 or as otherwise provided in COMAR 14.04.05, commenced operations not more than 7 years before the date on which the business submits an application for an investment by TEDCO; Has received not more than $30,000,000 in investment by persons other than TEDCO as of the date that the business submits an application for an investment by TEDCO; and Has no more than 250 employees. “Employee” means a full-time or full-time equivalent W-2 reporting worker of a business. Equity Financing. “Equity financing” means the purchase of: Shares, units, or interests in a business; or Rights to ownership of shares, units, interests, or rights, such as options or warrants, in a business. “Equity financing includes debt financing that is convertible into equity. “Follow-on investment” means TEDCO’s investment in a business in which TEDCO, at the time of the investment, holds debt or equity. “Founder” means an individual who establishes a business by: Assuming a portion of the risk of the business; and Having the initial rights to a portion of the profits of the business. Intellectual Property. “Intellectual property” means the intangible value developed by human creativity that is protected by the legal mechanisms of patents, trademarks, copyrights, service marks, trade secrets, mask works, and plant variety protection certificates. “Intellectual property” includes inventions, discoveries, know-how, show-how, processes, unique materials, copyrightable works, original data, and other creative or artistic works that have commercial value. “Intellectual property” also includes the physical embodiments of intellectual effort such as models, machines, devices, designs, apparatus, instrumentation, circuits, computer programs and visualizations, biological materials, chemicals, other compositions or matter, plants, and records of research. “Investment” means equity financing by TEDCO in a qualified business. “Investment Committee” has the meaning stated in §10-401(e) of the Act. “Investment program” means any TEDCO investment program or fund authorized by or under the Act. “Office of the Attorney General” means Office of the Attorney General of Maryland. “Person” has the meaning stated in General Provisions Article, §1-114, Annotated Code of Maryland. “Product” means an item, process, or service for sale that is developed through or relies on technological innovation. “Qualified business” has the meaning stated in §§10-401(g) and 10-487(a)(4) of the Act, except as otherwise stated in this subtitle. “Rural area” has the meaning stated in State Finance and Procurement Article, §2-207, Annotated Code of Maryland. “Rural community” has the meaning stated in State Finance and Procurement Article, §2-207, Annotated Code of Maryland. “Social disadvantage” means subject to racial or ethnic prejudice or cultural bias within American society because of identity as a member of a group and without regard to individual qualities, as such term is interpreted under 13 CFR §124.103. Technology. “Technology” means the application of science for practical purposes. “Technology” includes products and processes that are, or will be, protectable as intellectual property. “Technology-based business” means a business that relies on technology to provide proprietary competitive advantage in the market. TEDCO. “TEDCO” means Maryland Technology Development Corporation established under the Act. For purposes of an investment program, TEDCO includes each entity owned by TEDCO through which investments are made under the investment program. “Workforce” means founders and employees of a business when determining: Whether a business is a qualified business; and The impact or potential impact of an investment on the State, a community in the State, or an area or region of the State. Economic Development Article, §§10-409 and 10-4A-27, Annotated Code of Maryland Effective date: Regulations .01—.11 under COMAR 14.04.01 Stem Cell Research Commission recodified to be COMAR 14.04.08 Stem Cell Research Commission effective December 30, 2019 (46:26 Md. R. 1167) Regulation .01 adopted under a new chapter, Definitions effective December 30, 2019 (46:26 Md. R. 1167) Regulation .01B amended effective February 22, 2021 (48:4 Md. R. 178); February 21, 2022 (49:4 Md. R. 302); September 18, 2023 (50:18 Md. R. 800) Except as otherwise provided in this subtitle, these regulations prescribe the policies and procedures applicable to all TEDCO investment programs. The objective of TEDCO’s investment programs is to foster the growth of early-stage technology-based businesses in the State. TEDCO seeks and makes investments that align the objectives of economic development in the State and return on investment. The balance of these objectives varies from investment program to investment program. Except for follow-on investments and for all investments under COMAR 14.04.09, TEDCO’s investments are limited to early-stage technology-based businesses. Eligibility Criteria. Except as provided in §C of this regulation, TEDCO may invest in an applicant if TEDCO determines the applicant meets all of the following criteria: The applicant is a technology-based business; Except for applicants applying for investment under COMAR 14.04.09, over half of the applicant’s workforce works at and from a physical location in the State; An applicant’s principal business operations are conducted from a physical location in the State; The applicant agrees to execute a securities repurchase agreement or an equivalent commitment, each with a duration of five years, subject to the terms and in the form approved by the Office of the Attorney General; The applicant agrees to use the investment primarily to: Support business operations in the State; or In the case of a start-up business, establish and support business operations in the State; The applicant employs not more than 250 employees; The applicant is not primarily engaged in retail sales, real estate development, insurance, banking, or lending; The applicant is not primarily engaged in the provision of professional services by accountants, attorneys, or physicians; and Other eligibility criteria for each investment program under COMAR 14.04.03—.06 and.09; Qualified Business Information. Except as required under §C of this regulation, in order to be considered for an investment by TEDCO, an applicant shall submit to TEDCO a written application in accordance with Regulation .05 of this chapter with sufficient information for TEDCO to establish eligibility under §A of this regulation, including: Except for applicants applying for investment under COMAR 14.04.09, the total number of the applicant’s founders and employees and the number of the applicant’s founders and employees working in the State; The address of the applicant’s principal business operations in the State and a copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the principal business operations; Addresses of all the physical locations of the applicant; and Any other information required by TEDCO as necessary to establish that the applicant is a qualified business. Substantial Economic Impact Information. In lieu of the information provided in §B(1)—(3) of this regulation, the applicant may submit to TEDCO information that the applicant’s business will have a substantial economic impact in the State as set forth in COMAR 14.04.07. After reviewing information submitted by an applicant under this section, TEDCO may request additional information or conduct its own investigation of the applicant’s potential for substantial economic impact in the State. In its sole discretion, TEDCO may submit information provided under this section to the Investment Committee for its consideration. This section does not apply to applicants applying for investment under COMAR 14.04.09. Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an investment. State Small Business Credit Initiative Funds. All investments using proceeds allocated under the federal State Small Business Credit Initiative shall comply with 12 U.S.C. 5701 et seq., as amended. In General. In its sole discretion, TEDCO shall select eligible applicants for investment based on a written application and investment diligence. Each investment program shall have a separate application, application process, and submission deadlines. Application Process. In General. TEDCO shall make available to the public on or through its website: An application process for each investment program; and Deadlines, if any, to submit applications to an investment program. Required Information. Through an application, an applicant shall provide information sufficient for TEDCO to: Determine whether the applicant meets the eligibility requirements as set forth in the Act and the specific requirements of the applicable investment program set forth in COMAR 14.04.03—.06 and .09; and Evaluate TEDCO’s investment criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation. Preliminary Evaluation of Eligibility. TEDCO’s investment program staff: Shall perform an initial review of each application in accordance with the Act and Regulation .04 of this chapter; and May review the application for investment criteria in accordance with this regulation and may examine the applicant’s books and records, business plan, and other business documents. Eligibility Determination. Within 30 days from the date an applicant submits the application to TEDCO, TEDCO shall notify the applicant if TEDCO finds the applicant ineligible for investment under Regulation .04 of this chapter. Investment Criteria, Diversity and Inclusion Criteria, and Diligence for all Investment Programs. If the applicant is eligible for investment by TEDCO, TEDCO shall consider the investment criteria as set forth in §B(5)(b) of this regulation and diversity and inclusion criteria as set forth in §B(5)(c) of this regulation and shall conduct diligence as set forth in §B(5)(d) of this regulation. Investment Criteria. TEDCO shall use the following investment criteria as the basis of a scoring rubric to evaluate eligible applicants: The growth potential of the applicant based on a credible and sustainable business model; The degree to which the applicant’s proposed product or service addresses a need in the market and brings value to customers; Size of the total addressable market for the applicant’s product or services; The analysis of competitors in the market and sustainability of the applicant’s competitive advantage; The strength of the applicant’s management team including the team’s technical competence, entrepreneurial experience, business experience, and ability to grow the business; The potential of the applicant or the applicant’s management team, as applicable, to raise follow-on capital, increase revenues, and create jobs; Stage of development for product or services including market testing, customer discovery, and scientific validation; The applicant’s plan to deliver product or services to the market including manufacturing, marketing, partnering and as applicable, regulation strategies; The amount of funds the applicant has raised as of the date of application; The applicant’s future financing plan including financial models, employment plan, strategic milestones, and capital needs; The applicant demonstrates a reasonable opportunity that TEDCO will receive a positive return on its investment; The applicant’s satisfaction of specific investment program criteria as specified under each investment program, as applicable; The time period from which the business commenced operations; and Adherence to the application process. Diversity and Inclusion Criteria. TEDCO shall consider whether: The investment has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community; and A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged. Diligence. TEDCO’s investment diligence may include: Review of the applicant’s books and records and business plan; One or more site visits; Discussion with customers and competitors; Evaluation of intellectual property; Independent review of scientific data; Validation of claims and assumptions made in the application; and At TEDCO’s sole discretion, an applicant’s presentation and interview. Follow-On Investments. To the extent that TEDCO already has information and documents to evaluate eligibility and investment criteria for a follow-on investment, TEDCO may accept a follow-on investment application requiring only the additional information and documents TEDCO needs to make the determinations under §B(2) of this regulation. At the time of the follow-on application and investment, TEDCO shall reconfirm the business’s eligibility as required under this regulation. All information determining eligibility of the business shall be verified as provided under Regulation .04D of this chapter. Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric adopted for each investment program based on the investment criteria and diversity and inclusion criteria. Final Approval. The Chief Executive Officer, in the Chief Executive Officer’s sole discretion, shall base TEDCO’s final decision regarding an investment in an eligible applicant on: The application; The aggregate scores from the evaluation of investment criteria and diversity and inclusion criteria under §C of this regulation; The relative strength of the applicant in comparison to other applicants; The likelihood that the investment in the applicant will lead to economic growth in the State; The amount of money available for the specific TEDCO investment program from which the investment will be made; and An analysis of the potential of the investment in the applicant to positively impact economically disadvantaged individuals, economically distressed areas or regions, or rural areas or rural communities. Closing Conditions. After final approval, TEDCO may release the funds to invest in an applicant if the following closing conditions are met: At the time of the investment, the applicant remains eligible; The applicant executes a securities repurchase agreement or an equivalent commitment as set forth in Regulation .04 of this chapter before the receipt of the investment proceeds; The applicant agrees to use the proceeds of the investment to establish and support operations in the State and in accordance with any requirements of the applicable investment program; and The applicant satisfies other closing conditions as required by the Office of the Attorney General and other terms and conditions that TEDCO, in its sole discretion, may require. Rejected Applicants. If an applicant is rejected for an investment, TEDCO shall notify the applicant in writing. In General. The amount of money available for investment shall vary from investment program to investment program. Amount for Each Investment Program. Pre-Seed Builder Fund and Inclusion Fund. TEDCO may make an investment of up to $500,000 in each business selected for participation in the Pre-Seed Builder Fund or the Inclusion Fund. Rural Business Innovation Initiative Program. TEDCO may invest up to $25,000 per investment. Seed Funds. TEDCO may invest: For Cybersecurity Investment Fund and Technology Commercialization Fund, up to $500,000 per investment; For the Life Science Investment Fund, up to $500,000 per investment; and For the GAP Fund, up to $750,000 per investment. Maryland Venture Fund. TEDCO may invest $250,000 to $1,500,000 per investment. Maryland Equity Investment Fund. TEDCO may invest up to $2,000,000 per investment. Exceptions. The Board may increase or decrease the investment cap described in §B of this regulation at the request of the Chief Executive Officer and in accordance with any limitations of the appropriation. If the Board modifies an investment cap under §B of this regulation in accordance with this §C of this regulation, TEDCO shall publish the modified investment cap on its website.. In order to foster inclusive and diverse entrepreneurship and innovation throughout the State, including initiatives to raise awareness of investment programs to assist small minority and women-owned businesses, TEDCO shall: Establish bench-marks for diversity and inclusion for each investment program; Provide in the application process an opportunity for applicants to self-identify economic disadvantage; Consider historical data on investments in comparison to the bench-marks; and Develop outreach marketing targeted to economically disadvantaged groups in the State. An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment. An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of equity financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee. Economic Development Article, §§10-409 and 10-4A-27, Annotated Code of Maryland Effective date: December 30, 2019 (46:26 Md. R. 1167) Regulation 03 amended effective July 8, 2024 (51:13 Md. R. 647) Regulation 04 amended effective September 18, 2023 (50:18 Md. R. 800) Regulation .04A amended effective January 20, 2025 (52:1 Md. R. 19) Regulation .05B amended effective February 22, 2021 (48:4 Md. R. 178); September 18, 2023 (50:18 Md. R. 800) Regulation .05D amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .06B amended effective September 18, 2023 (50:18 Md. R. 800) Regulation .06B, C amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .09 amended effective February 21, 2022 (49:4 Md. R. 302) These regulations prescribe the objectives and investment policy of the Pre-Seed Builder Fund and the Inclusion Fund, the standards for qualification and investment criteria for participation in the Pre-Seed Builder Fund and the Inclusion Fund, and procedures and guidelines for TEDCO’s selection of businesses to receive Pre-Seed Builder Fund and Inclusion Fund investment. The objective of the Pre-Seed Builder Fund is to make pre-seed investments in and to support the development of technology-based start-up businesses owned and managed by individuals who demonstrate economic disadvantage. The objective of the Inclusion Fund is to make investments in technology-based businesses that have grown since their pre-seed stage and are owned and managed by individuals who demonstrate economic disadvantage. In this chapter, the following terms have the meanings indicated. Terms Defined. “Executive support” includes assistance in and support for management and implementation, planning, tracking and analysis, networking support, mentoring, coaching, advisory, facilitation, instruction or observation and feedback provided to a business. “Inclusion Fund” means the program established by §§10-481—10-483 of the Act. “Pre-Seed Builder Fund” means the program established by §10-486 of the Act. The Pre-Seed Builder Fund and Inclusion Fund each identify investment opportunities in businesses that are often overlooked by traditional sources of investment and financing because of economic disadvantage and seek to invest in early-stage technology-based businesses that have the potential, with the Pre-Seed Builder Fund investment, the Inclusion Fund investment, or other TEDCO services, to create jobs in the State and become attractive targets for follow-on financing or investment. In General. TEDCO shall be satisfied that the applicant meets the eligibility requirements set forth in COMAR 14.04.02.04. Eligibility Requirements Specific to Pre-Seed Builder Fund. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that: At the time of TEDCO's investment, at least one owner or executive manager who has demonstrated economic disadvantage works at the applicant full-time; At the time of TEDCO's investment, at least 50 percent of the applicant is owned by one or more individuals who have demonstrated economic disadvantage; and If required by TEDCO, the founders, owners, managers, or officers agree to receive executive support. Eligibility Requirements Specific to Inclusion Fund. In addition to the requirements set forth in COMAR 14.04.02.04 and §B(1) and (3) of this regulation, TEDCO shall be satisfied that: At the time of TEDCO's investment, at least 30 percent of the applicant is owned by one or more individuals who have demonstrated economic disadvantage; and For at least 1 year after the time of TEDCO's investment, the applicant is controlled and managed by one or more individuals who have demonstrated economic disadvantage. In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by the Pre-Seed Builder Fund or the Inclusion Fund in accordance with the application process as set forth in COMAR 14.04.02. Investment Criteria. In addition to the investment criteria described in COMAR 14.04.02.05, the following investment criteria shall form the basis of TEDCO’s determination of the applicant’s potential to attract subsequent financing or investment after participating in the Pre-Seed Builder Fund or the Inclusion Fund and to create jobs in the State: Whether the applicant has or does not have available to it other means of financing; and Whether the applicant has secured, through verifiable documentation: Expressions of interest in providing financing to the applicant from sources of institutional venture investment or other financing sources, based on specified milestones; or Network opportunities, including introductions to customers, employees, and partners. TEDCO shall use the investment criteria to evaluate applicants to determine: Whether an applicant advances in the application process; and The extent to which the achievement of milestones determined by TEDCO or the receipt of executive support will be a condition of investment by the Pre-Seed Builder Fund or Inclusion Fund. TEDCO may require: Eligible applicants to interview with TEDCO program staff; and Finalists for investment to make in-person presentations to TEDCO program staff. Re-application After Initial Rejection. If TEDCO rejects a business for investment by the Pre-Seed Builder Fund or by the Inclusion Fund after the business submits a first application to TEDCO, the business may re-apply to TEDCO upon the later of: 120 days after the date on which TEDCO issues a written rejection to the business; or The satisfaction of recommendations by TEDCO, if any. Re-application After Subsequent Rejection. If TEDCO rejects a business for investment by the Pre-Seed Builder Fund or by the Inclusion Fund any time after the business submits a second application to TEDCO, the business may re-apply to TEDCO upon the later of: 1 year after the date on which TEDCO issues a written rejection to the business; or The satisfaction of any recommendations by TEDCO, if any. Economic Development Article, §10-409, Annotated Code of Maryland Effective date: December 30, 2019 (46:26 Md. R. 1167) Regulation .01 amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .02 amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .03B amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .04 amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .05B, C amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .06 amended effective February 21, 2022 (49:4 Md. R. 302) These regulations prescribe the objectives and investment policy of the RBII Fund, the standards for qualification and investment criteria for a business to receive investment from the RBII Program, and procedures and guidelines for TEDCO’s selection of businesses to receive investment from the RBII Fund. The objective of the RBII Fund is to make pre-seed investments in technology-based businesses that maintain principal business operations in rural areas or rural communities. In this chapter, the following terms have the meanings indicated. Terms Defined. “RBII Fund” is part of the RBII Program through which TEDCO provides pre-seed investments to small or early-stage technology-based businesses in rural areas or rural communities. “RBII Program” means the Rural Business Innovation Initiative Program through which TEDCO provides pre-seed investment, technical and business assistance, mentoring services, and operational support to small or early-stage technology-based businesses in rural areas or rural communities. The RBII Fund identifies pre-seed investment opportunities in small or early-stage technology-based businesses in rural areas and rural communities that are often overlooked by traditional sources of pre-seed investment because of the location of the businesses’ principal business operations in a rural area or a rural community. The RBII Fund seeks to make investments that TEDCO determines have the potential to enable the business to advance to the next-stage of venture investment and to become an attractive applicant for other TEDCO investment programs not less than 12 to 24 months after investment by the RBII Fund. In General. TEDCO shall be satisfied that the applicant meets the eligibility requirements set forth in COMAR 14.04.02.04. Location and Other Requirements. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that: The applicant’s principal business operations are located in a rural area or a rural community; and At the time of the application, the applicant has received mentoring services from the RBII Program for a period of not less than 90 days. In General. TEDCO shall select a business for investment from the RBII Program in accordance with the application process set forth in COMAR 14.04.02. Investment Criteria. In addition to the investment criteria described in COMAR 14.04.02.05, TEDCO shall consider the following investment criteria: Whether the applicant has previously received a grant from the RBII Program; and Whether the applicant has the potential to grow and to receive an investment from other TEDCO investment programs not less than 12 to 24 months after receipt of RBII Fund investment proceeds. Economic Development Article, §10-409, Annotated Code of Maryland Effective date: December 30, 2019 (46:26 Md. R. 1167) These regulations prescribe the objectives and investment policy of the Seed Funds, the eligibility requirements and criteria for investment by the Seed Funds, and procedures and guidelines for TEDCO’s investment in early-stage businesses. Through Seed Funds investment, TEDCO seeks to strengthen and grow early-stage technology-based businesses with the goal of creating a State-wide environment that encourages and supports emerging businesses and maximizes economic impact in the State. In this chapter, the following terms have the meanings indicated. Terms Defined. “Cybersecurity Investment Fund” means the investment program established by §10-464 of the Act. “GAP Fund” means the investment program established in accordance with the Act to make investments in businesses between seed-stage and venture investment. “Life Science Investment Fund” means the investment program established in accordance with the Act to make investments in businesses that develop products for commercialization which address human health and require approval from the United States Food and Drug Administration. “Seed Funds” means the Life Science Investment Fund, the Cybersecurity Investment Fund, the Technology Commercialization Fund, and the GAP Fund. “Technology Commercialization Fund” means the investment program established in accordance with the Act to make investments in businesses that develop and commercialize new technology-based products in all fields of technology. TEDCO seeks investment opportunities in early-stage technology-based businesses with demonstrable potential to secure next-stage investment and grow with a positive economic impact in the State. In General. TEDCO shall be satisfied that the applicant meets the requirements under COMAR 14.04.02.04. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that the business is based on the validation of a minimum viable product or, in the case of life sciences, proof of concept data with validation from in vitro or in vivo models or patient samples. Eligibility for Specific Seed Funds. For Technology Commercialization Fund investments, at the time of the application and initial investment, the business: Has raised not more than $10,000,000 of dilutive funding, not including the investment; and Employs not more than 30 employees. For Cybersecurity Investment Fund investments, the business: Shall be focused on information technology security, including the protection of networked devises, networks, programs, and data from unintended or unauthorized access, change, or destruction; and At the time of the application and initial investment: Has raised not more than $10,000,000 of dilutive funding, not including the investment; and Employs not more than 30 employees. For GAP Fund investments, the business: Shall have secured verifiable funding commitments from non-government sources for a $1:1 ratio match to TEDCO’s investment, the receipt of which by the business shall be a condition of closing the TEDCO investment; Shall receive the non-governmental source of funding specified in §B(3)(a) of this regulation not more than 90 days before TEDCO’s investment and in connection with the same financing round in which TEDCO invests; and Shall use the proceeds from TEDCO’s investment for payroll to compensate new employees in the State hired by the applicant after or not more than 90 days before TEDCO’s release of the investment proceeds; and At the time of application and initial investment: Has raised not more than $10,000,000 of dilutive funding, not including the investment; and Shall employ not more than 30 employees. For Life Science Investment Fund: The business shall be considered an early-stage business if the business submits an application for investment to TEDCO: Not more than 7 years after the date on which the business commenced operations or not more than 5 years after the date on which the business received its final approval from the United States Food and Drug Administration for the product or device the business is developing, whichever is later; and Otherwise meets the requirements of an early-stage business; The business shall be in the process of developing a technology for a product for human health that requires approval from the United States Food and Drug Administration prior to market; and At the time of the application and initial investment, the business: Has raised not more than $10,000,000 of dilutive funding, not including the investment; and Employs not more than 30 employees. In addition to the investment criteria set forth in COMAR 14.04.02.05, TEDCO shall consider whether: The market opportunity is appropriate for a seed-stage investment; The applicant has the potential to secure institutional venture capital from other investors; and The management team has the skills and ability to effectively secure an institutional venture investment. In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by the Seed Funds in accordance with the application process set forth in COMAR 14.04.02. Reapplication after Initial Rejection. If TEDCO rejects a business for investment by the Seed Funds after the business submits a first application to TEDCO, the business may re-apply to TEDCO upon the later of: 90 days after the date on which TEDCO issues a written rejection to the business; or The business’s consultation with TEDCO’s advisory services, if required by TEDCO, and satisfaction of any recommendations by TEDCO. Reapplication after Subsequent Rejection. If TEDCO rejects a business for investment by the Seed Funds any time after the business submits a second application to TEDCO, the business may re-apply to TEDCO upon the later of: 180 days after the date on which TEDCO issues a written rejection to the business; or The business’s consultation with TEDCO’s advisory services, if required by TEDCO, and satisfaction of any recommendations by TEDCO. Economic Development Article, §10-409, Annotated Code of Maryland Effective date: December 30, 2019 (46:26 Md. R. 1167) Regulation .05B amended effective February 21, 2022 (49:4 Md. R. 302); January 20, 2025 (52:1 Md. R. 19) These regulations prescribe the objectives and investment policy of the Maryland Venture Fund, and the eligibility requirements, criteria, procedures and guidelines for investment by the Maryland Venture Fund. Through the Maryland Venture Fund, TEDCO seeks to support the State’s innovation and entrepreneurship environment by investing in opportunities that will have the potential to: Generate financial returns to sustain the investment programs that constitute the Maryland Venture Fund; and Foster economic growth throughout the State. In this chapter, the following terms have the meanings indicated. Terms Defined. “Enterprise Fund” means the investment program established by §10-469 of the Act. “Invest Maryland Program” means the investment program established under §§10-4A-01—10-4A-28 of the Act. “Maryland Venture Fund” means the Enterprise Fund and the Invest Maryland Program. TEDCO seeks to invest in businesses that have demonstrated financial success and continued growth potential appropriate for subsequent venture investments. TEDCO shall be satisfied that the applicant meets the requirements under COMAR 14.04.02.04. In General. In addition to the investment criteria set forth in 14.04.02.05, TEDCO shall consider the following investment criteria: Whether the market opportunity is appropriate for venture-stage investment; Whether the applicant, at the time it submits an application to TEDCO, is raising a minimum investment round of $2 million; Except for life sciences businesses, whether the applicant’s quarterly revenues equal or exceed $250,000; Whether the investment has the potential to generate returns of two times the amount of TEDCO’s invested capital not more than 8 years from the date of the investment; Whether the applicant presents a plausible exit strategy for investors; Whether the applicant can provide access to or information about its partners and customers; Whether the management team has the skills and ability to effectively secure an institutional venture investment or effectuate a successful exit for investors; Whether the applicant has the potential to secure institutional venture capital from other investors concurrent with Maryland Venture Fund; and Except for life science businesses, whether the applicant’s annual growth rate equals or exceeds 20 percent. In General. Except as provided in §§B and C of this regulation, TEDCO shall select businesses for investment by Maryland Venture Fund in accordance with the application process set forth in COMAR 14.04.02. Enterprise Fund. For Enterprise Fund investments: TEDCO may not acquire an ownership interest in a business that exceeds 25 percent of the business; and Within 15 years of making the investment, TEDCO shall divest itself of the investment. Economic Development Article, §§10-409 and 10-4A-27, Annotated Code of Maryland Effective date: December 30, 2019 (46:26 Md. R. 1167) Regulation .03B amended effective September 18, 2023 (50:18 Md. R. 800) Regulation .05 amended effective February 21, 2022 (49:4 Md. R. 302) Regulation .05B amended effective February 22, 2021 (48:4 Md. R. 178) Regulation .05C repealed effective September 18, 2023 (50:18 Md. R. 800) Regulation .07C amended effective February 21, 2022 (49:4 Md. R. 302) These regulations establish the Investment Committee of the Board and prescribe the responsibilities of the Investment Committee and the procedures of the Board to appoint the members of the Investment Committee. The objective of the Investment Committee is to advise on and approve the investments as required under the Act. Established. There is an Investment Committee of the Board. Composition. The Investment Committee shall consist of three directors. Each member of the Investment Committee shall serve for a term of 1 year and until the director’s successor is duly appointed and qualifies. Procedures for Appointment. The Board shall elect the members of the Investment Committee by the same procedures as set forth in the TEDCO Bylaws that the Board uses for the election of officers. In considering directors for appointment to the Investment Committee, the Board and any nominating committee of the Board shall consider appropriate qualifications for serving on the Investment Committee, including: Relevant professional experience or education in economic development, economics, public policy, investment, finance, or diverse communities; and Potential conflicts that may impair the director’s ability to participate in the matters before the Investment Committee. Procedures of Investment Committee. A majority of Investment Committee members present in person shall constitute a quorum for the transaction of business at a meeting. All matters brought before the Investment Committee at a properly constituted meeting shall be approved by a majority of the Investment Committee members present. All other procedures of the Committee, including procedures for consents without a meeting and remote meetings, shall be governed by the TEDCO Bylaws or the Investment Committee charter. Responsibilities of the Committee. Consider and Determine Substantial Economic Impact. Upon request by Chief Executive Officer of TEDCO, the Investment Committee shall determine whether an investment in a business will have a substantial economic impact in the State. If the Investment Committee determines that an investment will have a substantial economic impact in the State, the Investment Committee shall authorize TEDCO to make the investment. If the Investment Committee does not determine that the investment will have a substantial economic impact in the State, the Investment Committee may not authorize TEDCO to make the investment. Monitor Investments. In addition to any other meeting for the purpose of approving an investment under §A(1) of this regulation, the Investment Committee shall meet at least two times per year to review: Investments in businesses which TEDCO staff has determined are no longer qualified businesses or no longer satisfy §10-401(g)(1)(i) of the Act; and Reports issued by TEDCO in accordance with §10-415 of the Act. Post-Investment Determinations. For the first 5 years after making an investment, if TEDCO identifies a business that ceases to be a qualified business, TEDCO shall notify the Investment Committee. To the extent possible and available, TEDCO shall deliver to the Investment Committee information sufficient for the Investment Committee to determine whether the business has had a substantial economic impact in the State or is reasonably projected to have a substantial economic impact in the State. Information Considered. In considering whether an investment has had or will have a substantial economic impact in the State, the Investment Committee may rely on information provided by TEDCO and may conduct its own investigation. Substantial Economic Impact in the State. The Investment Committee shall determine that a proposed investment in a business will have a substantial economic impact in the State if the proposed investment is reasonably projected to meet the following measures: For the first $100,000 to be invested by TEDCO, the business will create at least five jobs in the State within 3 years from the date of the investment; For each $20,000 to be invested in addition to $100,000, the business will create at least one job within 3 years of the investment; The business will make capital investments in the State in an amount not less than two times the dollar value of the investment by TEDCO within 3 years from the date of the investment; and The business shall make a contribution to the State’s technology ecosystem in terms of: A return on the investment to TEDCO to be used for subsequent investment in the State; The development of products and services beneficial to companies and other persons in the State; The potential to attract management or additional venture financing to businesses based in the State; or The development of successful entrepreneurs from diverse communities in the State or the support of communities whose economic development has been impeded by economic distress. Economic Development Article, §§10-408 and 10-4A-27, Annotated Code of Maryland Effective date: December 30, 2019 (46:26 Md. R. 1167) Regulation .04A amended effective February 22, 2021 (48:4 Md. R. 178); February 21, 2022 (49:4 Md. R. 302) This chapter describes the policies and procedures for State-funded stem cell research in Maryland. The basic objective of the Program is to provide financial assistance to qualified applicants to advance stem cell research and its therapeutic applications. In this chapter, the following terms have the meanings indicated. Terms Defined. Applicant. “Applicant” means a person located in Maryland who applies for the financial assistance provided pursuant to this chapter. “Applicant” includes a public or private institution of higher education and a public or private corporation. “Commission” means the Stem Cell Research Commission created under §10-431 of the Act. “Corporation” means the Maryland Technology Development Corporation. “Financial assistance” means a grant or loan from the Fund. “Fund” means the Maryland Stem Cell Research Fund created under §10-434 of the Act. “Grantee” means an applicant who has been awarded financial assistance, whether in the form of a grant or a loan. “Human stem cell” means a stem cell derived from human tissue. “Institutional Review Board (IRB)” has the meaning stated in 45 CFR §46.102. “Program” means the program for State-funded stem cell research authorized by the Act. “Stem cell research” means basic, translational, or clinical research that: Is conducted in Maryland; and Uses human stem cells derived from: Tissue obtained after the birth of a human being; or Unused IVF material. “State-funded stem cell research” means, in addition to the meaning stated in §10-429(i) of the Act, stem cell research that receives financial assistance. “Stem cell” has the meaning stated in §10-429(j) of the Act. “Unused IVF material” means the unused material described in §§10-438 and 10-439 of the Act. To be eligible for financial assistance, an applicant shall certify to the Commission and the Corporation that the applicant: Will use the financial assistance solely in accordance with the requirements of the Program; Will conduct the stem cell research for which financial assistance is requested in Maryland; Has the legal capacity and all necessary legal authorization to incur the obligations related to the financial assistance; and Will comply with all applicable State and federal laws, including the requirement that stem cell research receiving financial assistance be conducted only after the approval of an Institutional Review Board. This chapter does not preclude an applicant from conducting otherwise lawful research that is ineligible for financial assistance. The Commission shall consider the following factors in determining whether to award financial assistance to an applicant: The scientific merit of the stem cell research described in the application, taking into account the evaluation, rankings, and recommendations of an independent scientific peer review committee pursuant to §10-435 of the Act; The ethical implications of the stem cell research described in the application; The relationship between the stem cell research described in the application and the etiology, prevention, diagnosis, or treatment of a disease; The potential impact of the stem cell research described in the application on technological innovation and the advancement of biotechnology in Maryland's academic, business, and nonprofit sectors; and The relationship between the stem cell research described in the application and other research and sources of research funding. The financial assistance may be used for the purposes stated in the application, including the cost of facilities, capital leases, and capital equipment at a place where stem cell research is conducted. The amount of indirect, unspecified, or overhead costs included in an application may not exceed the percentage of the total cost of the research identified by the Commission in a request for applications. An application for financial assistance shall be in the form and with the content identified by the Commission in a request for applications. An application shall categorize the stem cell research described in the application by reference to the categories of research identified by the Commission in a request for applications. An application shall state the intended duration of the State-funded stem cell research. A grantee shall execute a grant agreement or loan agreement with the Corporation, in a form prescribed by the Corporation, that: Makes disbursement of financial assistance contingent on evidence of IRB approval of the State-funded stem cell research described in the application; Acknowledges, as appropriate, that an award of financial assistance beyond the current fiscal year may be contingent on future appropriations to the Fund; Establishes the scope of the State's ownership or other financial interest in the commercialization and other benefits of the results, products, inventions, and discoveries of the State-funded stem cell research described in the application; Discusses, as appropriate, other matters related to intellectual property; and Contains other assurances, as determined by the Corporation, related to the grantee's compliance with applicable law and the terms of the financial assistance. A grantee shall, upon request, provide information to the Commission and Corporation reasonably related to the oversight of an award of financial assistance and the progress and results of the State-funded stem cell research. An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment. An applicant shall comply, and remain in compliance, with the State's policy concerning drug-free and alcohol-free workplaces, as set forth in Executive Order 01.01.1989.18, and shall make a good-faith effort to eliminate illegal drug use and alcohol and drug abuse from places at which work is performed that has been financed in whole or in part with financial assistance. The Corporation, in consultation with the Commission, may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act if: Conformance to the requirements of any federal, State, or local programs in connection with State-funded stem cell research necessitates waiver or variance of a regulation; or In the determination of the Corporation, the application of a regulation in a specific case or in an emergency situation would be inequitable or contrary to the purposes of the Act. Economic Development Article, §10-409 and 10-441, Annotated Code of Maryland Effective date: August 27, 2007 (34:17 Md. R. 1510) Regulations .01—.11 under COMAR 14.04.01, Stem Cell Research Commission recodified to be COMAR 14.04.08, Stem Cell Research Commission effective December 30, 2019 (46:26 Md. R. 1167) Regulation .03B amended effective February 22, 2021 (48:4 Md. R. 178) Regulation .05A amended effective February 22, 2021 (48:4 Md. R. 178) These regulations prescribe the objectives and investment policy of the Maryland Equity Investment Fund, and the eligibility requirements, criteria, procedures, and guidelines for investment by the Maryland Equity Investment Fund. Through the Maryland Equity Investment Fund, TEDCO seeks to invest in qualified businesses with a goal to increase private equity and venture capital in the State that will have the potential to: Generate financial returns to the benefit of the participants of the several pension systems managed by the State Retirement and Pension System; and Foster economic growth throughout the State. In this chapter, the following terms have the meanings indicated. Terms Defined. “Maryland Equity Investment Fund” means the investment program established by §10-487 of the Act. “Qualified business” has the meaning stated in §10-487(a)(4) of the Act.. TEDCO seeks to invest in businesses that have demonstrated financial success and continued growth potential appropriate for subsequent venture investments or a public offering. TEDCO shall be satisfied that the applicant is a qualified business and meets the requirements under COMAR 14.04.02.04. In General. In addition to the investment criteria set forth in COMAR 14.04.02.05, TEDCO shall consider the following investment criteria: Whether the market opportunity is appropriate for venture capital; Whether the applicant, at the time it submits an application to TEDCO, is raising a minimum investment round of $2,000,000; Whether the investment has the potential to generate returns of two times the amount of TEDCO’s invested capital not more than 8 years from the date of the investment; Whether the applicant presents a plausible exit strategy for investors; and Whether the management team has the skills and ability to effectively secure an institutional venture investment concurrent with the investment of the Maryland Equity Investment Fund. TEDCO shall select businesses for investment by the Maryland Equity Investment Fund in accordance with the application process set forth in COMAR 14.04.02. Economic Development Article, §10-409, Annotated Code of Maryland Effective date: September 18, 2023 (50:18 Md. R. 800) Except as otherwise provided in this subtitle, the following terms have the meanings indicated. Terms Defined. “Award” means grants, equity financing, debt financing, and other financial assistance. “Commission” means the Equitech Growth Commission. “Equitech Growth Fund” means the fund described in §10-488 of the Act. “Infrastructure” means to build or expand equipment, systems, resources, and facilities in the State to support, attract, and retain businesses in the State. Metrics. “Metrics” means performance criteria and measures established by the applicant for the applicant’s project. “Metrics” may include but is not limited to the project’s potential impact on businesses, industry growth, jobs, diversity, equity and inclusion, and economic development in the State. “Metrics” shall be consistent with the 10-year goals in the strategic plan developed by the Commission. “Nonprofit” means a tax-exempt entity under the Internal Revenue Code, organized for charitable, educational, or socially beneficial purposes. “Other sources of funding” means funding received from a non-profit or a public entity. “Private entity” or “private sector” means a non-governmental enterprise for profit that is not affiliated, through ownership or control with the federal, state, or a local government. Public Entity “Public entity” means a unit of the State or a local government. “Public entity” includes political subdivision, trusts, and instrumentalities of the State. “State” means the State of Maryland. Workforce Development. “Workforce development” means a coordination of programs and policies to create, sustain, and retain a viable workforce. “Workforce development” includes educational programs, degree and non-degree programs, certifications, training, and exposure to career pathways in Science, Technology, Engineering, Arts, or Math for all ages. Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria: The applicant is a public, nonprofit, or private entity in the State, including institutions of higher education and public-private partnerships; The applicant’s proposed project is primarily focused on workforce development or infrastructure in the State; The applicant shall use the award proceeds and the leveraged funds in the State; The applicant shall have secured verified funding commitments from the private sector, federal sources, and other sources of funding in an amount to be approved by TEDCO, the receipt of which by the applicant shall be a condition of disbursing the TEDCO funds; and The applicant’s proposal shall be consistent with the 10-year goals in the strategic plan developed by the Commission. Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an award. In General. In its sole discretion, TEDCO shall select eligible applicants for an award under the Equitech Growth Fund based on a written application, applicant’s proposal, and TEDCO’s diligence. Application Process. In General. TEDCO shall make available to the public on or through its website: An application process for awards under the Equitech Growth Fund; and Deadlines, if any, to submit the applications. Required Information. Through an application, an applicant shall provide a proposal for its project with information sufficient for TEDCO to establish eligibility for an award, including: Whether the applicant meets the eligibility requirements as set forth in the Act and under Regulation .02 of this chapter; Detailed description of the proposed project including, but not limited to, current and proposed financial budgets, and the project’s goals to support workforce development or infrastructure in the State; Reasonable metrics of the project’s potential impact on the State’s ecosystem; and Any other information required to evaluate program criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation. Preliminary Evaluation of Eligibility. TEDCO's program staff: Shall perform an initial review of each application in accordance with the Act and Regulation .02 of this chapter; and May review the application for program criteria under §B(5) of this regulation and may examine the applicant’s project proposal, budgets, metrics, and other documents. Eligibility Determination. Within 45 days from the date an applicant submits the application to TEDCO, TEDCO shall notify the applicant if TEDCO finds the applicant ineligible for an award under Regulation .02 of this chapter. Program Criteria, Diversity and Inclusion Criteria, and TEDCO’s Diligence. If the applicant is eligible for an award by TEDCO, TEDCO shall consider the program criteria as set forth in §B(5)(b) of this regulation and diversity and inclusion criteria as set forth in §B(5)(c) of this regulation and shall conduct diligence as set forth in §B(5)(d) of this regulation. Program Criteria. TEDCO shall use the following criteria as the basis of a scoring rubric to evaluate eligible applicants: Whether the applicant’s project is viable, sustainable, and has a high probability for success; The degree to which the applicant’s project addresses a need in the State’s ecosystem; The degree to which the applicant’s project will leverage funding from private sector, federal sources, or other sources of funding; The extent to which the applicant’s project is consistent with the 10-year goals in the strategic plan developed by the Commission; The analysis of the project’s metrics and potential impact on the State’s ecosystem; and Adherence to the application process. Diversity and Inclusion Criteria. TEDCO shall consider whether: The applicant’s project has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community; and A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged. Diligence. TEDCO’s diligence may include: Review of applicant’s proposal, budgets, and metrics; Site visits; Validation of claims and assumptions made in the application; and At TEDCO’s sole discretion, an applicant’s presentation and interview. Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric based on the program criteria and diversity and inclusion criteria. Final Approval. The Chief Executive Officer, in the Chief Executive Officer’s sole discretion, shall base TEDCO’s final decision regarding an award to an eligible applicant on: The application; The aggregate scores from the evaluation of the program criteria and diversity and inclusion criteria under §C of this regulation; The likelihood that applicant’s project will lead to economic growth through workforce development or infrastructure in the State; and The amount of money available for this program. Rejected Applicants. If an applicant is rejected for an award, TEDCO shall notify the applicant in writing. Project Work-In-Progress. When the applicant’s project is work-in-progress, the applicant shall provide interim and final progress reports of the project including a detailed description of the use of award funds on a regular basis, as required from time to time by TEDCO. Project Completion. Upon completion of the project, the applicant shall provide impact reports to TEDCO annually for a period of up to 5 years following the completion, in such form as TEDCO may specify from time to time. Impact reports shall include an analysis of the achievement of the project’s metrics. An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment. An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of award financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee. Economic Development Article, §10-488, Annotated Code of Maryland Effective date: January 20, 2025 (52:1 Md. R. 19) Except as otherwise provided in this subtitle, the following terms have the meanings indicated. Terms Defined. “Award” means a $50,000 grant to a qualifying applicant. “Baltimore-Columbia-Towson MSA” means the Metropolitan Statistical Area in Maryland, as defined by the United States Office of Budget and Management. “Chief Executive Officer designee” means a TEDCO employee to whom the TEDCO’s Chief Executive Officer has designated decision making authority. Metrics. “Metrics” means performance criteria and measures established by the applicant for the applicant’s grant proposal. “Metrics” may include but is not limited to the project’s potential impact on fostering growth of the entrepreneurial innovation ecosystem in the State. “Postsecondary institution located in the Baltimore-Columbia-Towson MSA” means universities and colleges stated in §10-462.1 of the Act. “Program” means the Pava LaPere Innovation Acceleration Grant Program. Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria: The applicant is a technology-based start-up company; The founder of the applicant are students of a postsecondary institution located in the Baltimore-Columbia-Towson MSA; The applicant has its principal place of business located in the Baltimore-Columbia-Towson MSA; and The applicant agrees to use at least 20 percent of the award to hire third-party consultants for planning, development, regulatory compliance, or other technical assistance related to establishing a start-up company unless upon applicant’s request, TEDCO provides a waiver thereto. Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an award. In General. TEDCO shall select eligible applicants for an award under the Program based on a written application, applicant’s proposal, and TEDCO’s diligence. Application Process. In General. TEDCO shall make available to the public on or through its website: An application process for awards under the Program; and Deadlines, if any, to submit the applications. Required Information. Through an application, an applicant shall provide a grant proposal including information sufficient for TEDCO to establish eligibility for an award, including: Whether the applicant meets the eligibility requirements as set forth in the Act and under Regulation .02 of this chapter; Detailed description of the grant proposal including, but not limited to, current and proposed financial budgets, business proposal, and the project’s potential impact on growth of the entrepreneurial innovation ecosystem in the State; The address of applicant’s principal business operations in the Baltimore-Columbia-Towson MSA and a copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the principal business operations; Reasonable metrics of the project’s potential impact; and Any other information required to evaluate program criteria. Preliminary Evaluation of Eligibility. The Program: Shall perform an initial review of each application in accordance with the Act and Regulation .02 of this chapter; and May review the application for program criteria under §B(5) of this regulation and may examine the applicant’s grant proposal, business plan, budget, metrics, and other information. Eligibility Determination. Within 45 days from the date an applicant submits the application to the program, the program shall notify the applicant if TEDCO finds the applicant ineligible for an award under Regulation .02 of this chapter. Program Criteria. The Program shall consider the following criteria as the basis of a scoring rubric to evaluate eligible applicants: Whether the applicant’s grant proposal is viable, and has a reasonable probability for success; The analysis of the grant proposal’s metrics and potential impact; and Adherence to the application process. Diligence. Program diligence may include: Review of applicant’s grant proposal, budgets, and metrics; Validation of claims and assumptions made in the application; and An applicant’s presentation and interview. Scoring. The Program shall score each applicant in accordance with a uniform scoring rubric based on the program criteria. Final Approval. The Chief Executive Officer or a Chief Executive Officer’s designee, shall base TEDCO’s final decision regarding an award to an eligible applicant on: The application; and The aggregate scores from the evaluation of the program criteria under §C of this regulation. Rejected Applicants. If an applicant is rejected for a grant award, the program shall notify the applicant in writing. Award Amount. In accordance with the Act, program award amounts are $50,000 to each qualifying applicant, subject to funding availability. An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment. An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of award financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee. Economic Development Article, §10-462, Annotated Code of Maryland Effective date: January 20, 2025 (52:1 Md. R. 19) Except as otherwise provided in this subtitle, the following terms have the meanings indicated. Terms Defined. “Award” means grants, equity financing, debt financing, and other financial assistance provided under the Program. “Fund” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Matching Fund as described in §§10-473—10-478 of the Act. “Fiscal year” means the 12-month period from July 1 through the following June 30. “Program” means the Maryland Small Business Innovation Research and Technology Transfer Incentive Program as described in §§10-473—10-478 of the Act. “Proposal” means the proposal submitted by the business to an agency of the federal government for a SBIR or STIR award. “Qualified business” has the meaning stated in §10-401(g) of the Act. “SBIR award” means the small business innovation research award and has the meaning stated in §10-473 of the Act. “STTR award” means the small business technology transfer award and has the meaning stated in §10-473 of the Act. These regulations prescribe the objectives of the Program and the procedures and guidelines for TEDCO’s selection of businesses to receive an award under the Program. The purpose of the program is to foster job creation and economic development in the State by promoting the commercialization of research conducted by small businesses in the State and facilitating the transfer of technology from universities and federal research laboratories to small businesses. Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria: Over half of the applicant’s workforce works at and from a physical location in the State; The applicant’s principal business operations are conducted from a physical location in the State; The applicant agrees to execute a securities repurchase agreement or an equivalent commitment, in the form determined and approved by the Office of the Attorney General, requiring the applicant to return to the Fund any money from an award including accrued interest and fees, if the applicant does not remain a qualified business for at least 2 years after receiving the award; The applicant agrees to return the award if the applicant fails to fulfill the eligibility and maintenance requirements of the Program as set forth in the Act and §A of this regulation; The applicant agrees to use the award primarily to: Support business operations in the State; or In the case of a start-up business, establish and support business operations in the State; The applicant employs not more than 250 employees; The applicant is not primarily engaged in retail sales, real estate development, insurance, banking, or lending; The applicant is not primarily engaged in the provision of professional services by accountants, attorneys, or physicians; The applicant has received a Phase I or Phase II SBIR award or STTR award during the 6 months immediately preceding the submission of the applicant’s application under the Program; The applicant has received no prior award under the Program in the current fiscal year; and The applicant has received less than three awards under the Program. Eligibility Information. In order to be considered for an award by TEDCO, an applicant shall submit to TEDCO a written application in accordance with Regulation .04 of this chapter with sufficient information for TEDCO to establish eligibility under §A of this regulation, including: The total number of the applicant’s founders and employees and the number of the applicant’s founders and employees working in the State; The address of the applicant’s principal business operations in the State and a copy of the lease, license agreement, deed, or other document that evidences the applicant’s right to occupy the physical location of the principal business operations; Addresses of all the physical locations of the applicant; A copy of the applicant’s proposal submitted to a federal agency for a SBIR award or a STTR award; A copy of the applicant’s SBIR award or STTR award notification; and Any other information required by TEDCO as necessary to establish that the applicant is eligible for an award under the Program. Verification of Information Submitted to TEDCO. An applicant shall verify, in a form approved by the Office of the Attorney General, the information the applicant submits to TEDCO in an application for an award. In General. In its sole discretion, TEDCO shall select eligible applicants for an award under the Program based on a written application, applicant’s proposal, and TEDCO’s diligence. Application Process. In General. TEDCO shall make available to the public on or through its website: An application process for awards under the Program; and Deadlines, if any, to submit the applications. Required Information. Through an application, an applicant shall submit information sufficient for TEDCO to: Determine whether applicant meets the eligibility requirements as set forth in the Act and under Regulation .03 of this chapter; and Any other information required to evaluate program criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation. Preliminary Evaluation of Eligibility. TEDCO's program staff: Shall perform an initial review of each application in accordance with the Act and Regulation .03 of this chapter; and May review the application for program criteria under §B(5) of this regulation and may examine the applicant’s proposal, budgets, economic impact, and other documents. Eligibility Determination. Within 45 days from the date an applicant submits the application to TEDCO, TEDCO shall notify the applicant if TEDCO finds the applicant ineligible for an award under Regulation .03 of this chapter. Program Criteria, Diversity and Inclusion Criteria, and TEDCO’s Diligence. If the applicant is eligible for an award by TEDCO, TEDCO shall consider the program criteria as set forth in §B(5)(b) of this regulation and diversity and inclusion criteria as set forth in §B(5)(c) of this regulation and shall conduct diligence as set forth in §B(5)(d) of this regulation. Program Criteria. TEDCO shall use the following criteria as the basis of a scoring rubric to evaluate eligible applicants: Whether the applicant’s business promotes commercialization of research in the State or facilitates transfer of technology from universities and federal research laboratories; The degree to which the applicant will utilize the award towards commercialization of the research; Whether the applicant’s business in primarily engaged in research and development activities that assist in the prevention of, preparedness for, or response to a public health crisis in the State; The potential economic impact of the applicant’s growth in the State; Whether the award has a potential to foster job creation and economic development in the State; and Adherence to the application process. Diversity and Inclusion Criteria. TEDCO shall consider whether: The award has the potential to result in a positive economic development impact for a region or an area which is economically distressed or a rural area or a rural community; and A founder of the applicant or a member of the applicant’s executive leadership has self-identified as a member of a group that is economically disadvantaged. Diligence. TEDCO’s diligence may include: Review of applicant’s proposal, budgets, and impact to the State’s ecosystem; Site visits; Validation of claims and assumptions made in the application; and At TEDCO’s sole discretion, an applicant’s presentation and interview. Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric based on the program criteria and diversity and inclusion criteria. Final Approval. The Chief Executive Officer, in the Chief Executive Officer’s sole discretion, shall base TEDCO’s final decision regarding an award to an eligible applicant on: The application; The aggregate scores from the evaluation of the program criteria and diversity and inclusion criteria under §C of this regulation; The likelihood that an award will foster job creation and economic development in the State; and The amount of money available for this program. Rejected Applicants. If an applicant is rejected for an award, TEDCO shall notify the applicant in writing. Subject to the availability of money in the Fund, TEDCO shall provide an award to selected applicants as follows: For Phase I SBIR award or STTR award applicants, an award under the Program shall be the lesser of: 25 percent of the Phase I SBIR award or STTR award; or $25,000. For Phase II SBIR award or STTR award applicants, an award under the Program shall be the lesser of: 25% of the Phase II SBIR award or STTR award; or $75,000. An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment. An action or decision required or permitted to be taken or made by TEDCO under the Act or these regulations, including execution of award financing documents, may be taken by the Chief Executive Officer or Chief Executive Officer’s designee. Economic Development Article, §10-462, Annotated Code of Maryland Effective date: Regulations .01 — .07 adopted effective March 17, 2025 (52:5 Md. R. 238)