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)