Authorization. The Service, with the approval of the Department and the Board of Public Works, in accordance with these regulations, may award grants, loans, and loan guarantees to State agencies, local governments, and persons located or locating in Maryland for projects to reduce, recover, and recycle scrap tires generated in Maryland through the expansion or construction of scrap tire collection, processing, or recycling facilities. Eligible Uses. A loan or grant may be used for capital costs that: Expand an existing scrap tire facility that utilizes scrap tires; or Establish a new scrap tire facility or business which relates to the purposes outlined in Environment Article, §9-275(a)(2), Annotated Code of Maryland. Capital costs may include: Acquiring or constructing buildings and related appurtenances; Land acquisition; Equipment and machinery, including pollution control devices and systems or nuisance abatement devices and systems, or both; Trucks or other vehicles; Development of plans and specifications by professional engineering and architectural services, as long as these professionals are not shareholders, partners, or owners of the company or do not have an interest in the company. Working capital and general operating expenses are not eligible costs under this program. At the discretion of the Department and the Service, grants and loans may be awarded to include some or all of the following project costs: Improvement of facilities or equipment to initiate or expand the use of scrap tires to make raw materials or products; Test runs of manufacturing processes or asphalt application processes using scrap tires and other uses of scrap tires; and Testing of products made from scrap tires. Application Procedures. An applicant shall submit to the Service all of the following: An original and two complete copies of the application on a form provided by the State; A detailed typewritten narrative description of the project; A financial statement completed by a certified public accountant that describes the applicant's assets and liabilities; A certification that the applicant is unable to obtain, on reasonable terms, sufficient credit to finance the applicant's actual needs without the loan or grant. The Service, upon review of the applications, may recommend each application to the Department, listing its priority and amount, for approval of grants or loans. The dollar amount requested may not exceed the funding allocated for the items specified in §B of this regulation. The Department shall review the recommended action made by the Service. If acceptable to the Department, the recommendation shall be brought before the Board of Public Works for approval. Application Content. The narrative description required under §C(1)(b) of this regulation shall include, at a minimum, the following: Applicant's name and address; For corporations and partnerships, the identification of officers and major shareholders and their extent of interest; A description of the applicant's current business activities; Types and quantities, by number or weight, of scrap tires to be transported, collected, processed, or recycled; A description of the project's contribution to the recycling or other beneficial uses of scrap tires; A description of the project's contribution to the State's solid waste management goals; A description of the scope of the project as municipal, regional, or Statewide; Certification of the facility's conformance to the county solid waste management plan and that it meets all applicable zoning and land use requirements; Evidence of public participation and community support; Status of the permit process for any State and local permits required by the project; A detailed listing of assets to be purchased with the loan; A detailed report of projected capital costs of the project that are being requested; Plans and specifications for the project; The schedule for construction or implementation of the project; A description of the applicant's management system for construction and operation of the project; A description of the bookkeeping and accounting system for expenditures for construction or implementation of the project, and repayment of the loan, when applicable; and A feasibility study prepared by an independent agent. The financial information required under §C(1)(c) of this regulation shall include the following: Audited financial statements for the 3 most recent years; The most recent quarterly financial statements; 3 years of projections, including the following: Balance sheets, Income statement, Statement of changes in cash flow, and Assumptions used in creating the projections; A schedule of short-term notes payable; A schedule of properties owned or mortgaged, or both, identifying the mortgage holder; A schedule of long-term debt; and An explanation of any contingent liabilities. The Department may require, in its discretion, the following additional information: Appraisals of real property and equipment; Accounts receivable aging; and Accounts payable aging.