# COMAR Title 14 — Independent Agencies

## Subtitle 04 — Maryland Technology Development Corporation

### Chapter 04 — Rural Business Innovation Initiative

**Authority:** Economic Development Article, §10-409, Annotated Code of Maryland

**Administrative History:** Effective date: December 30, 2019 (46:26 Md. R. 1167)

#### Regulation .01 Purpose.

*COMAR 14.04.04.01*

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.

#### Regulation .02 Objective.

*COMAR 14.04.04.02*

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.

#### Regulation .03 Definitions.

*COMAR 14.04.04.03*

A. In this chapter, the following terms have the meanings indicated.

B. Terms Defined.

  (1) “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.

  (2) “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.

#### Regulation .04 Investment Philosophy and Types of Qualified Businesses.

*COMAR 14.04.04.04*

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.

#### Regulation .05 Eligibility.

*COMAR 14.04.04.05*

A. In General. TEDCO shall be satisfied that the applicant meets the eligibility requirements set forth in COMAR 14.04.02.04.

B. Location and Other Requirements. In addition to the requirements set forth in COMAR 14.04.02.04, TEDCO shall be satisfied that:

  (1) The applicant’s principal business operations are located in a rural area or a rural community; and

  (2) 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.

#### Regulation .06 Procedures and Guidelines for Investment Decisions.

*COMAR 14.04.04.06*

A. 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.

B. Investment Criteria. In addition to the investment criteria described in COMAR 14.04.02.05, TEDCO shall consider the following investment criteria:

  (1) Whether the applicant has previously received a grant from the RBII Program; and

  (2) 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.