Chapter 10. Equitech Growth Fund
Regulation .01 Definitions.LinkCopy Citation
A.
Except as otherwise provided in this subtitle, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Award” means grants, equity financing, debt financing, and other financial assistance.
(2)
“Commission” means the Equitech Growth Commission.
(3)
“Equitech Growth Fund” means the fund described in §10-488 of the Act.
(4)
“Infrastructure” means to build or expand equipment, systems, resources, and facilities in the State to support, attract, and retain businesses in the State.
(5)
Metrics.
(a)
“Metrics” means performance criteria and measures established by the applicant for the applicant’s project.
(b)
“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.
(c)
“Metrics” shall be consistent with the 10-year goals in the strategic plan developed by the Commission.
(6)
“Nonprofit” means a tax-exempt entity under the Internal Revenue Code, organized for charitable, educational, or socially beneficial purposes.
(7)
“Other sources of funding” means funding received from a non-profit or a public entity.
(8)
“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.
(9)
Public Entity
(a)
“Public entity” means a unit of the State or a local government.
(b)
“Public entity” includes political subdivision, trusts, and instrumentalities of the State.
(10)
“State” means the State of Maryland.
(11)
Workforce Development.
(a)
“Workforce development” means a coordination of programs and policies to create, sustain, and retain a viable workforce.
(b)
“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.
Regulation .02 Eligibility.LinkCopy Citation
A.
Eligibility Criteria. TEDCO may make an award to an applicant, if TEDCO determines the applicant meets all of the following criteria:
(1)
The applicant is a public, nonprofit, or private entity in the State, including institutions of higher education and public-private partnerships;
(2)
The applicant’s proposed project is primarily focused on workforce development or infrastructure in the State;
(3)
The applicant shall use the award proceeds and the leveraged funds in the State;
(4)
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
(5)
The applicant’s proposal shall be consistent with the 10-year goals in the strategic plan developed by the Commission.
B.
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.
Regulation .03 Procedures and Guidelines for Award Decisions.LinkCopy Citation
A.
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.
B.
Application Process.
(1)
In General. TEDCO shall make available to the public on or through its website:
(a)
An application process for awards under the Equitech Growth Fund; and
(b)
Deadlines, if any, to submit the applications.
(2)
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:
(a)
Whether the applicant meets the eligibility requirements as set forth in the Act and under Regulation .02 of this chapter;
(b)
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;
(c)
Reasonable metrics of the project’s potential impact on the State’s ecosystem; and
(d)
Any other information required to evaluate program criteria and, if applicable, diversity and inclusion criteria under §B(5) of this regulation.
(3)
Preliminary Evaluation of Eligibility. TEDCO's program staff:
(a)
Shall perform an initial review of each application in accordance with the Act and Regulation .02 of this chapter; and
(b)
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.
(4)
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.
(5)
Program Criteria, Diversity and Inclusion Criteria, and TEDCO’s Diligence.
(a)
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.
(b)
Program Criteria. TEDCO shall use the following criteria as the basis of a scoring rubric to evaluate eligible applicants:
(i)
Whether the applicant’s project is viable, sustainable, and has a high probability for success;
(ii)
The degree to which the applicant’s project addresses a need in the State’s ecosystem;
(iii)
The degree to which the applicant’s project will leverage funding from private sector, federal sources, or other sources of funding;
(iv)
The extent to which the applicant’s project is consistent with the 10-year goals in the strategic plan developed by the Commission;
(v)
The analysis of the project’s metrics and potential impact on the State’s ecosystem; and
(vi)
Adherence to the application process.
(c)
Diversity and Inclusion Criteria. TEDCO shall consider whether:
(i)
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
(ii)
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.
(d)
Diligence. TEDCO’s diligence may include:
(i)
Review of applicant’s proposal, budgets, and metrics;
(ii)
Site visits;
(iii)
Validation of claims and assumptions made in the application; and
(iv)
At TEDCO’s sole discretion, an applicant’s presentation and interview.
C.
Scoring. TEDCO shall score each applicant in accordance with a uniform scoring rubric based on the program criteria and diversity and inclusion criteria.
D.
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:
(1)
The application;
(2)
The aggregate scores from the evaluation of the program criteria and diversity and inclusion criteria under §C of this regulation;
(3)
The likelihood that applicant’s project will lead to economic growth through workforce development or infrastructure in the State; and
(4)
The amount of money available for this program.
E.
Rejected Applicants. If an applicant is rejected for an award, TEDCO shall notify the applicant in writing.
Regulation .04 Process for Monitoring.LinkCopy Citation
A.
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.
B.
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.
Regulation .05 Nondiscrimination.LinkCopy Citation
An applicant shall comply with all applicable federal, State, and local laws regarding discrimination and equal opportunity in employment.
Regulation .06 Program Administration.LinkCopy Citation
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.
Chapter annotations
Authority: Economic Development Article, §10-488, Annotated Code of Maryland
History: Effective date: January 20, 2025 (52:1 Md. R. 19)