reglab/statecodes huggingface dataset:
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.03 - Application and Approval of Credit

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application for Tax Credit. To claim eligibility for a tax credit and to be certified as eligible for a tax credit, a business entity shall submit to the Department, by not later than September 15 of the calendar year following the end of the taxable year in which the costs were incurred, an application on a form approved by the Department.
B. Each application shall include the following:
(1) The legal name of the business entity;
(2) The street address of the principal place of business of the business entity, the business entity's mailing address, the business entity's email address, and the business entity's telephone number;
(3) The name, business mailing address, telephone number, and email address of an individual with authority to act on behalf of the business entity;
(4) The federal employer identification number of the business entity or, if the business entity is an individual or sole proprietorship, the federal taxpayer identification number of the individual or proprietor;
(5) Verification of the accreditation of the SCIF or SCIFs by the appropriate federal agency;
(6) An account, which may be in the form of a spreadsheet, showing in detail and with specificity the eligible costs incurred by the business entity; and
(7) Any other information required or requested by the Department.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.04 - Maximum Annual Credits

Current through Register Vol. 51, No. 14, July 12, 2024
A. The total amount of credits approved by the Department under Regulation .03C of this chapter may not exceed $2,000,000 for any calendar year.
B. If the total amount of credits applied for by all business entities under Regulation .03C of this chapter exceeds the maximum specified under §A of this regulation, the Department shall approve a credit under Regulation .03 of this chapter for each business entity in an amount equal to the product of multiplying the credit applied for by the business entity times a fraction:
(1) The numerator of which is the maximum specified under §A of this regulation; and
(2) The denominator of which is the total of all credits applied for by all business entities under Regulation .03 of this chapter in the calendar year.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.05 - Certification of Credit

Current through Register Vol. 51, No. 14, July 12, 2024
The Department shall certify to the business entity the amount of the allowed tax credits approved by the Department for the business entity. The Department shall issue the certification by December 15 of the calendar year following the end of the taxable year in which the costs were incurred.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.06 - Claiming the Credit

Current through Register Vol. 51, No. 14, July 12, 2024
To claim the credits approved by the Department, a business entity shall:
A. File with the Comptroller an amended income tax return for the taxable year in which the costs were incurred; and
B. Attach a copy of the Department's certification of the approved credit amount to the amended income tax return.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.07 - Carryover of Tax Credits

Current through Register Vol. 51, No. 14, July 12, 2024
A. If the credit allowed in any taxable year exceeds the State income tax for that taxable year, the business entity may apply the excess as a credit against the State income tax for succeeding taxable years until the full amount of the excess is used.
B. A tax credit may not be carried back to a preceding taxable year.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.08 - Mergers and Acquisitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In determining the carryover of unused credits and the effect of a merger or acquisition, federal law shall be applied to the business entities as if they were separate business entities. Any provisions under federal law that would allow separate corporations that are merged or acquired to carry forward unused credits on the surviving corporation's returns shall apply to the carryover of this credit for State purposes.
B. Unused Credits.
(1) In a transaction involving an asset purchase, unused credits:
(a) Do not transfer from the business entity to the purchaser; and
(b) Remain with the business entity to whom the certification was issued.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.09 - Short Taxable Years

Current through Register Vol. 51, No. 14, July 12, 2024
A. Eligible Costs. A business entity may only claim the credit for allowed costs incurred during its taxable year. If the business entity has a short taxable year, only the allowed costs incurred during the short taxable year are allowed on the short year return.
B. If the business entity incurs allowed costs in 2 taxable years during a calendar year, one of which is a short taxable year, the business entity may only claim a credit on the short taxable year return in an amount equal to the total credits certified by the Department multiplied by a fraction:
(1) The numerator of which is the allowed costs incurred during the short taxable year; and
(2) The denominator of which is the allowed costs incurred during the entire calendar year.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.10 - Addition Modifications

Current through Register Vol. 51, No. 14, July 12, 2024
A. Individuals. To the extent an individual is allowed a credit on the State individual income tax return, the amount of the credit claimed shall be added to federal adjusted gross income to calculate the individual's State adjusted gross income.
B. Corporations. To the extent that a corporation is allowed a credit on its State income tax return, the amount of the credit claimed shall be added to federal taxable income to calculate the corporation's State modified income.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.11 - Partnerships, S Corporations, Limited Liability Companies, Business Trusts, Estates, and Trusts

Current through Register Vol. 51, No. 14, July 12, 2024
A. Partnerships, S Corporations, Limited Liability Companies, and Business Trusts. In the case of a subchapter S corporation, partnership, limited liability company, or business trust, the amount of the credits computed for the pass-through entity shall be allocated among the owners as agreed to in writing by the owners in accordance with Internal Revenue Service rules.
B. Estates and Trusts. In the case of an estate or trust, the amount of the credits computed for the estate or trust for any taxable year shall be apportioned among the estate or trust and the beneficiaries on the basis of the income of the estate or trust allocable to each.
C. Statements to Partners, Shareholders, Members, and Beneficiaries.
(1) Requirements. A partnership, S corporation, limited liability company, business trust, estate, or trust shall provide each of its partners, shareholders, members, or beneficiaries with a Maryland Form 510, Schedule K-1.
(2) Statement Attached to Return. A partner, shareholder, member, or beneficiary shall attach a copy of the Maryland Form 510, Schedule K-1, to the income tax return on which the credit is claimed.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.06 - Security Clearance Administrative Expenses and Construction and Equipment Costs Tax Credit › Section 24.05.06.13 - Waiver

Current through Register Vol. 51, No. 14, July 12, 2024
The Secretary may waive or vary particular provisions of this chapter to the extent that the waiver is not inconsistent with Tax-General Article, §10-732, Annotated Code of Maryland.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
These regulations prescribe the policies, procedures, and authorizations for assisting socially or economically disadvantaged persons to obtain the financing needed to perform government and public utility contracts.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.02 - Objective

Current through Register Vol. 51, No. 14, July 12, 2024
The basic objective of the Program is to guarantee loans or equity investments or to make loans to economically or socially disadvantaged business persons for working capital or equipment needed to perform federal, State, or local government or public utility contracts in order to encourage economically or socially disadvantaged persons to seek and perform these contracts.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Act" means Economic Development Article, Title 5, Subtitle 5, Annotated Code of Maryland, as amended.
(2) "Applicant" means a sole proprietor, a partnership, or a corporation applying for financial assistance under the Program.
(3) "Authority" means the Maryland Small Business Development Financing Authority.
(4) "Contract" means a contract for a project financed by the federal or State government, a local government, or a utility regulated by the Public Service Commission.
(5) "Contract Financing Fund" means the Small Business Development Contract Financing Fund.
(6) "Department" means the Department of Business and Economic Development, a principal department of the State.
(7) "Direct loan" means a loan made by the Authority under the Program directly to the applicant.
(8) "Director" means the Executive Director or Deputy Director of the Authority.
(9) "Equity guaranty" means the Authority's guaranty of an equity investment in the applicant.
(10) "Financial assistance" means a direct loan or guaranty made by the Authority.
(11) "Financial institution" means any financial institution as that term is defined in Financial Institutions Article, §
										1-101(h), Annotated Code of Maryland, as well as any other lender approved by the Authority.
(12) "Guarantied loan" means a loan made to the applicant by a lender and guarantied by the Authority under the Program.
(13) "Guaranty" means a loan guaranty or an equity guaranty made under the Program.
(14) "Guaranty agreement" means the agreement between the Authority and the lender providing for the terms of the Authority's guaranty of a loan or equity investment.
(15) "Investor" means a person who invests funds in an applicant.
(16) "Lender" means a financial institution or other lender approved by the Authority.
(17) "Loan documents" means any instrument or agreement evidencing, securing, or guaranteeing the payment or the repayment of a loan, including by way of example any note, financing statement, mortgage, pledge, assignment, loan and security agreement, or guarantee.
(18) "Program" means the Contract Financing Program, as authorized by the Act.
(19) "Project" means the facility to be constructed, or task to be performed, under the contract.
(20) "Secretary" means the Secretary of Business and Economic Development.
(21) "Working capital" means funds used to pay for the current operations of a business, including, without limitation, supplies, materials, labor, equipment, accounts payable not more than 12 months old, or short-term credit used for working capital such as a bridge loan or revolving line of credit due within 12 months or less. "Working capital" does not include funds used to refinance existing long-term obligations.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.04 - Eligible Applicants

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Authority shall be satisfied that the following requirements to qualify for financial assistance have been met by applicants who are sole proprietors and by the owners of at least 70 percent of business enterprises that are not sole proprietorships:
(1) The applicant is of good moral character;
(2) As determined from creditors, employers, and other individuals who have personal knowledge of the applicant, the applicant has a reputation for financial responsibility;
(3) The applicant is a resident of Maryland or the applicant's principal place of business is in Maryland;
(4) The applicant is unable to obtain adequate business financing on reasonable terms through normal lending channels because the applicant:
(a) Belongs to a group that historically has been deprived of access to normal economic or financial resources because of race, color, creed, sex, religion, or national origin;
(b) Has an identifiable physical handicap that severely limits the ability of the applicant to obtain financial assistance, but does not limit the ability of the applicant to perform the contract or other activity for which the applicant would be receiving financial assistance;
(c) Has any other social or economic impediment that is beyond the personal control of the applicant, such as a lack of formal education or financial capacity or geographical or regional economic distress but that does not limit the ability of the applicant to perform the contract or other activity for which the applicant would be receiving financial assistance; or
(d) Does not meet the established credit criteria of at least one financial institution; and
(5) The applicant or owners of the applicant who qualify as socially or economically disadvantaged under §A(4) of this regulation actually control as well as own at least 70 percent of the business enterprise.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.05 - Eligible Uses

Current through Register Vol. 51, No. 14, July 12, 2024
The proceeds of the financial assistance shall be used for working capital or for machinery or equipment needed to perform a contract. Machinery and equipment may be financed only if the cost of the equipment can be repaid from contract proceeds and if the Authority has entered into an agreement with the applicant necessary to secure the financial assistance.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.06 - Applications for Financial Assistance

Current through Register Vol. 51, No. 14, July 12, 2024
A. To apply for financial assistance under the Program, an applicant shall submit to the Authority an application that includes:
(1) A detailed description of the project;
(2) An itemization of known and estimated costs, to include cash flow projections with underlying assumptions on the contract;
(3) The total amount of investment required to perform the contract;
(4) The funds available to the applicant without financial assistance from the Authority;
(5) The amount of financial assistance sought from the Authority;
(6) Information that relates to the inability of the applicant to obtain adequate financing on reasonable terms through normal lending channels;
(7) Information that relates to the financial status of the applicant, including:
(a) A balance sheet dated within 90 days of the application,
(b) A profit and loss statement dated within 90 days of the application,
(c) Credit references, and
(d) Detailed information on the status of outstanding indebtedness including copies of notes, security agreements, and other evidence of obligations;
(8) Information on available collateral;
(9) A copy of the applicant's articles of incorporation (filed with the state of incorporation), bylaws, partnership agreement, or other organizational documents;
(10) A copy of the deeds to all real property offered as collateral; and
(11) Other relevant information the Authority requests.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.07 - Guarantied Loan Terms and Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
Guarantied loans shall meet the following requirements:
A. Maximum Guaranty Amount. The part of the loan to be guarantied may not exceed $500,000.
B. Interest Rate. The interest rate to be paid on guarantied loans shall be a reasonable rate approved by the Authority.
C. Security. Guarantied loans shall be secured by liens on machinery and equipment purchased with guarantied loan proceeds, assignment of the contract to the lender or the Authority, as appropriate, the personal guaranties of the applicant's owners, and any other collateral approved by the lender and the Authority, which may include, but is not limited to, liens on the business assets of the applicant and deeds of trust on real property owned by the applicant or the applicant's owners.
D. Term. The term of each loan guaranty may not exceed the term of the contract for which the loan is provided, unless the Authority finds that a longer term better carries out the purposes of the Act.
E. Late Charges. Late charges, as permitted by law, may be imposed.
F. Title Insurance. If the guarantied loan is to be secured by real property, the Authority may require the:
(1) Applicant to provide an American Land Title Association Loan Policy issued by a title insurance company acceptable to the Authority for an amount equal to the maximum principal amount of the loan, insuring the Authority, evidencing that title to property offered as collateral on the date of closing is vested in the applicant, and containing only standard exceptions and encumbrances approved by the Authority.
(2) Title insurance policy to be accompanied by a survey, certified in the manner required by the Authority and the title company issuing the title insurance, showing that there are no easements or encroachments upon or other matters pertaining to the property, except those acceptable to the Authority. The title insurance policy may not contain any survey exceptions.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.08 - Guarantied Loan Application and Processing Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Loan Application.
(1) Guarantied loan applications shall be made upon standard forms prescribed by the Authority.
(2) Each application shall include the following documentation:
(a) A fully completed and properly executed application, executed by the lender and the applicant;
(b) A copy of a letter evidencing that the applicant has applied for and been denied a loan for the same amount or a lesser amount of money and having similar terms by a financial institution; or
(c) An executed copy of the lender's commitment letter that provides a commitment of financing contingent upon the Authority's approval of a guaranty of the lender's loan.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.09 - Equity Guaranty Terms and Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. Equity guaranties shall meet the requirements in §§B-H of this regulation.
B. Maximum Equity Guaranty Amount. The maximum equity guaranty amount may not exceed the lesser of:
(1) 10 percent of the investor's equity investment in the applicant; or
(2) $500,000.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.10 - Equity Guaranty Application and Processing Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application. Equity guaranty applications shall be made upon standard forms prescribed by the Authority. Each application shall be properly and fully completed and properly executed by the applicant.
B. Processing of Application. To make a determination of the eligibility of the applicant and the investor in accordance with Regulation .04 of this chapter, the Authority's staff shall perform an initial review of each equity guaranty application and may also perform a preliminary audit investigation of the applicant's and the investor's books and records.
C. Final Processing. Before approval of the equity guaranty, the applicant shall provide, for the Authority's review and approval, a copy of a commitment letter from the investor to provide equity financing which, at a minimum, shall state the amount, rate, and terms of the financing.
D. Equity Guaranty Approval. Approval of an equity guaranty shall be evidenced by a resolution of the Authority.
E. Equity Guaranty Documents. The equity guaranty documents may include, among others:
(1) A guaranty agreement;
(2) Personal and corporate guarantees;
(3) Evidence of proper equity investment approvals and filings by the applicant;
(4) Assignments of life insurance;
(5) Assignments of contracts and notices of assignment;
(6) Evidence of equity investment, such as stock certificates; and
(7) Other documents the Authority may require.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.12 - Direct Loan Application and Processing Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Loan Application. Loan applications shall be made upon standard forms prescribed by the Authority. Each application shall be fully completed and properly executed by the applicant.
B. Processing of Application.
(1) To make a determination of the eligibility of the applicant and the contract in accordance with Regulations .03B(4) and .04 of this chapter, the Authority's staff shall perform an initial review of each application and may also perform a preliminary audit investigation of the applicant's books and records.
(2) The Authority may obtain credit reports and lien and judgment reports and take other appropriate steps to investigate the creditworthiness of the applicant and the applicant's owners and the guarantors and the value of the collateral.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.13 - Nondiscrimination

Current through Register Vol. 51, No. 14, July 12, 2024
Each applicant shall comply with all applicable federal, State, and local laws and Departmental policies and programs regarding discrimination and equal opportunity in employment and credit practices including:
A. Title VII of the Civil Rights Act of 1964;
B. The provisions of the Governor's Code of Fair Employment Practices, as amended; and
C. The Department's Minority Business Enterprise Program, as amended.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.14 - Program Administration

Current through Register Vol. 51, No. 14, July 12, 2024
A. Any action or decision required or permitted to be taken or made by the Authority pursuant to the Act or these regulations may be taken by the Authority, the Secretary or the Secretary's designee, or, to the extent set forth in the Act or properly delegated by the Authority or the Secretary, the Executive Director of the Authority.
B. The Secretary may delegate to the Executive Director of the Authority or to any other official or employee of the Department or Authority the authority to review and execute any Program documents or loan documents.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.15 - False Statements or Reports

Current through Register Vol. 51, No. 14, July 12, 2024
A. A person may not knowingly make or cause any false statement or report to be made:
(1) In any application or in any document furnished to the Authority;
(2) For the purpose of influencing the action of the Authority on an application for financial assistance or for the purpose of influencing any action of the Authority affecting financial assistance whether or not the assistance may have been already extended.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.16 - Waiver

Current through Register Vol. 51, No. 14, July 12, 2024
The Authority may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act if:
A. Conformance to the requirements of any federal, State, or local programs in connection with a direct loan, equity guaranty or guarantied loan necessitates waiver or variance of a regulation; or
B. In the determination of the Authority, 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.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.17 - Severability

Current through Register Vol. 51, No. 14, July 12, 2024
The provisions of these regulations are severable. A judgment by any court of competent jurisdiction finding or declaring that any provisions of these regulations or the application of any provision to any person or circumstance is invalid does not affect the validity of the remaining provisions of the regulations or any other application of these regulations, and the remaining regulations shall have full force and effect as if no judgment had been entered.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.07 - Small Business Development Contract Financing Fund › Section 24.05.07.18 - Drug-Free and Alcohol-Free Workplace

Current through Register Vol. 51, No. 14, July 12, 2024
The applicant shall comply, and remain in compliance, with the State's policy concerning drug-free and alcohol-free workplaces, as set forth in COMAR 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 in accordance with a State loan.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
These regulations prescribe the policies, procedures, and authorizations for encouraging financial institutions to make loans to socially or economically disadvantaged persons to enable them to obtain the financing needed to sustain and expand their businesses and to hire and train employees.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.02 - Objective

Current through Register Vol. 51, No. 14, July 12, 2024
The basic objective of the Program is to guarantee loans and, in some cases, to provide interest subsidies to economically or socially disadvantaged business persons for working capital, the acquisition and related installation of machinery or equipment, certain necessary improvements to real property leased or owned in fee simple by the applicant, or the acquisition of real property if used in the business, in order to assist economically or socially disadvantaged business persons.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Act" means Economic Development Article, Title 5, Subtitle 5, inclusive, Annotated Code of Maryland, as amended.
(2) "Applicant" means a sole proprietor, a partnership, a limited liability company, a limited liability partnership, a cooperative, an unincorporated association, or a corporation applying for financial assistance under the Program.
(3) "Authority" means the Maryland Small Business Development Financing Authority.
(4) "Department" means the Department of Business and Economic Development, a principal department of the State.
(5) "Director" means the Executive Director or Deputy Director of the Authority.
(6) "Financial assistance" means a guaranty or an interest subsidy provided by the Authority.
(7) "Financial institution" means any financial institution as that term is defined in Financial Institutions Article, §
										1-101(h), Annotated Code of Maryland, as well as any other lender approved by the Authority.
(8) "Guaranty" means a loan guaranty made under the Program.
(9) "Guaranty agreement" means the agreement between the Authority and the lender providing for the terms of the Authority's guaranty of a loan and, if applicable, for an interest subsidy.
(10) "Interest subsidy" means a subsidy to be paid by the Authority to a lender to reduce the applicant's interest payments to the lender.
(11) "Lender" means a financial institution that makes a loan that is guarantied by the Authority under the Program.
(12) "Loan" means a loan made to the applicant by a lender and guarantied by the Authority under the Program.
(13) "Loan documents" means any instrument or agreement evidencing, securing, or guaranteeing the payment or the repayment of a loan, including by way of example any note, financing statement, deed of trust, pledge, assignment, loan and security agreement, or guarantee.
(14) "Program" means the guaranty program, as authorized by the Act.
(15) "Secretary" means the Secretary of Business and Economic Development.
(16) "Working capital" means funds used to meet the cash needs of an operating business entity, excluding capital purchases.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.04 - Eligible Applicants

Current through Register Vol. 51, No. 14, July 12, 2024
A. The Authority shall be satisfied that the following requirements to qualify for financial assistance have been met by applicants who are sole proprietors and by the owners of at least 70 percent of business enterprises that are not sole proprietorships:
(1) The applicant is of good moral character;
(2) As determined from creditors, employers, and other individuals who have personal knowledge of the applicant, the applicant has a reputation for financial responsibility;
(3) The applicant is a resident of Maryland or the applicant's principal place of business is in Maryland;
(4) The applicant is unable to obtain adequate business financing on reasonable terms through normal lending channels because the applicant:
(a) Belongs to a group that historically has been deprived of access to normal economic or financial resources because of race, color, creed, sex, religion, or national origin,
(b) Has an identifiable physical disability that severely limits the ability of the applicant to obtain financial assistance, but does not limit the ability of the applicant to perform the activity for which the applicant would be receiving financial assistance, or
(c) Has any other social or economic impediment that is beyond the personal control of the applicant, such as lack of formal education or financial capacity or geographical or regional economic distress but that does not limit the ability of the applicant to perform the activity for which the applicant would be receiving financial assistance; and
(5) The applicant or owners of the applicant who qualify as socially or economically disadvantaged under §A(4) of this regulation shall actually control as well as own at least 70 percent of the business enterprise.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.05 - Eligible Uses

Current through Register Vol. 51, No. 14, July 12, 2024
The purposes for which the loan is to be used include:
A. Working capital;
B. The acquisition and related installation of machinery or equipment;
C. Necessary improvements to real property leased or owned in fee simple by the applicant; or
D. The acquisition of real property to be owned in fee simple by the applicant if:
(1) The real property is to be used in the operation of the applicant's trade or business for which the loan and guarantee are sought, and
(2) A lien is placed on the real property by the financial institution.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.06 - Loan and Guaranty Terms and Requirements

Current through Register Vol. 51, No. 14, July 12, 2024
A. In order to qualify for a guaranty, all loans shall meet the requirements in §§B-K of this regulation.
B. Maximum Guaranty Amount. The Authority may not guaranty more than 80 percent of the principal of a loan or more than 80 percent of the interest on the loan accrued for up to 120 days beginning with the date of a payment default payable by the Authority after the Authority receives written notice of the payment default. The maximum amount payable by the Authority under its guaranty may not exceed $1,000,000.
C. Minimum Loan Amount. The loan amount may not be less than $5,000.
D. Interest Rate. The rate of interest on the loan shall be not greater than the rate of interest determined by the Authority to be the monthly weighted average of the prime lending rate, plus 2 percent, prevailing from time to time in the City of Baltimore on unsecured commercial loans.
E. Security. Guarantied loans shall be secured by liens on machinery and equipment purchased with guarantied loan proceeds, the personal guaranties of the applicant's owners, and any other collateral approved by the lender and the Authority which may include, but is not limited to, liens on the business assets of the applicant and deeds of trust on real property owned by the applicant or the applicant's owners.
F. Term. The loan shall mature not more than 10 years from the date of closing the loan.
G. Economic Impact. The economic impact of the loan shall be substantial. To determine the economic impact of a project, the Authority may consider:
(1) The amount of the guaranty obligation;
(2) The terms of the loan to be guaranteed;
(3) The number of new jobs that will be created by the loan;
(4) The number of jobs that will be retained because of the loan; and
(5) Any other factor that the Authority considers relevant.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.07 - Interest Subsidy

Current through Register Vol. 51, No. 14, July 12, 2024
In addition to the granting of a loan guaranty, the Authority may for the benefit of an applicant provide an interest subsidy to a financial institution issuing a loan guarantied by the Authority pursuant to this regulation which:
A. Is payable quarterly;
B. Does not exceed the difference between the rate of interest requested by the financial institution to make the loan (which rate may not exceed the rate of interest determined by the Authority to be the monthly weighted average of the prime lending rate, plus 2 percent, prevailing from time to time in the City of Baltimore on unsecured commercial loans) and the discount rate of interest employed by the Federal Reserve Bank of the United States, the difference to be determined by the Authority as of the date of closing of the loan for which the guaranty is given;
C. Is payable during the term of the loan, excluding any period in which the Authority determines that the loan is in default;
D. May be approved for the life of the loan or may be approved for 1 year, renewable annually at the Authority's discretion; and
E. May not exceed 4 percent.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.08 - Financial Assistance Application and Processing Procedures

Current through Register Vol. 51, No. 14, July 12, 2024
A. Application. Guaranty and interest subsidy applications shall be made upon standard forms prescribed by the Authority. Each application shall be accompanied by a detailed business plan which shall include but is not limited to the following:
(1) A detailed description of the proposed use or uses of the proceeds of the loan including projected cash flow analyses with underlying assumptions, marketing plans, or descriptions and appraisals;
(2) A detailed description of the funds available to the applicant;
(3) A detailed description of the proposed loan documents to be executed by the financial institution and the applicant;
(4) A detailed description of the property proposed as collateral for the loan together with the financial institution's certification as to value;
(5) Information that relates to the inability of the applicant to obtain adequate financing on reasonable terms through normal lending channels;
(6) Information that relates to the financial status of the applicant, including:
(a) A balance sheet dated within 90 days of the date of application,
(b) A profit and loss statement dated within 90 days of the date of application,
(c) Credit references, and
(d) The status of outstanding indebtedness;
(7) A proposed disbursement schedule;
(8) A proposed amortization schedule;
(9) A detailed description of the applicant's experience in the trade or business for which the loan and guaranty are sought;
(10) Information that relates to satisfaction of the applicant's meeting the requirements of Regulation .04 of this chapter;
(11) A copy of the articles of incorporation filed with the state of incorporation, bylaws, partnership agreement, or other organizational documents;
(12) A copy of the deeds and deeds of trust to all real property offered as collateral and of the certificates of title to vehicles;
(13) A copy of the letter from a financial institution dated within 90 days of the date of application evidencing that the applicant has applied for and been denied a loan for the same amount or a lesser amount of money and having similar terms;
(14) Information that relates to the economic impact to be created by the loan;
(15) A copy of a signed commitment letter from the lender outlining the terms and conditions under which the loan will be made;
(16) Other relevant information that the Authority requests.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.09 - Nondiscrimination

Current through Register Vol. 51, No. 14, July 12, 2024
Each applicant shall comply with all applicable federal, State, and local laws and Departmental policies and programs regarding discrimination and equal opportunity in employment and credit practices including Title VII of the Civil Rights Act of 1964, the provisions of the Governor's Code of Fair Employment Practices, as amended, and the Department's Minority Business Enterprise Program, as amended.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.10 - Program Administration

Current through Register Vol. 51, No. 14, July 12, 2024
A. An action or decision required or permitted to be taken or made by the Department pursuant to the Act or these regulations may be taken by the Authority, the Secretary or the Secretary's designee, or, to the extent set forth in the Act or properly delegated by the Authority or the Secretary, the Executive Director of the Authority.
B. The Secretary may delegate to the Executive Director of the Authority or to any other official or employee of the Department or Authority the authority to review and execute any Program documents or loan documents.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.11 - False Statements or Reports

Current through Register Vol. 51, No. 14, July 12, 2024
A. A person may not knowingly make or cause any false statement or report to be made:
(1) In any application or in any document furnished to the Authority;
(2) For the purpose of influencing the action of the Authority on an application for financial assistance or for the purpose of influencing any action of the Authority affecting financial assistance whether or not the assistance may have been already extended.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.12 - Waiver

Current through Register Vol. 51, No. 14, July 12, 2024
The Authority may waive or vary particular provisions of these regulations to the extent that the waiver is not inconsistent with the Act if:
A. Conformance to the requirements of any federal, State, or local programs in connection with a loan, guaranty or interest subsidy necessitates waiver or variance of a regulation; or
B. In the determination of the Authority, 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.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.08 - Small Business Development Guaranty Fund › Section 24.05.08.13 - Severability

Current through Register Vol. 51, No. 14, July 12, 2024
The provisions of these regulations are severable. A judgment by any court of competent jurisdiction finding or declaring that any provisions of these regulations or the application of any provision to any person or circumstance is invalid does not affect the validity of the remaining provisions of the regulations or any other application of these regulations, and the remaining regulations shall have full force and effect as if no judgment had been entered.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.09 - Small Business Surety Bond Guaranty Program › Section 24.05.09.01 - Purpose

Current through Register Vol. 51, No. 14, July 12, 2024
These regulations prescribe the policies, procedures, and authorizations for providing guaranties to sureties to encourage them to provide surety bonds to Maryland contractors.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.09 - Small Business Surety Bond Guaranty Program › Section 24.05.09.02 - Objective

Current through Register Vol. 51, No. 14, July 12, 2024
The basic objective of the Program is to guaranty surety bonds to sureties licensed to do business in Maryland to enable small Maryland businesses to obtain the bid, payment, and performance surety bonds necessary to perform local, State, and federal government and public utility contracts.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.09 - Small Business Surety Bond Guaranty Program › Section 24.05.09.03 - Definitions

Current through Register Vol. 51, No. 14, July 12, 2024
A. In this chapter, the following terms have the meanings indicated.
B. Terms Defined.
(1) "Act" means Economic Development Article, Title 5, Subtitle 5, inclusive, Annotated Code of Maryland, as amended.
(2) "Authority" means the Maryland Small Business Development Financing Authority.
(3) "Bond" means a bid, payment, or performance bond of not more than $1 million for each bond guarantied under the Program.
(4) "Contract" means the federal, State, or local government or public utility contract requiring a surety bond for which a guaranty under the Program is being requested.
(5) Contract Term.
(a) "Contract term" means the term of the contract.
(b) "Contract term" includes the:
(i) Maintenance or warranty period required by the contract; and
(ii) Period during which the surety may be liable for latent defects.
(6) "Department" means the Department of Business and Economic Development, a principal department of the State.
(7) "Fund" means the Small Business Surety Bond Guaranty Fund.
(8) "Guaranty" means a surety bond guaranty made under the Program.
(9) "Principal" means a small business entity that:
(a) Needs a surety bond to perform a contract; and
(b) Employs fewer than 500 full-time employees or has annual gross sales of less than $50 million.
(10) "Program" means the Small Business Surety Bond Guaranty Program, as authorized by the Act.
(11) "Secretary" means the Secretary of Business and Economic Development.
(12) "Surety" means a properly licensed surety bond company issuing a bond.
Code of Maryland Regulations › Title 24 - DEPARTMENT OF COMMERCE › Subtitle 05 - ECONOMIC DEVELOPMENT › Chapter 24.05.09 - Small Business Surety Bond Guaranty Program › Section 24.05.09.04 - Eligible Principals

Current through Register Vol. 51, No. 14, July 12, 2024
Principals shall meet the following requirements to qualify for a bond guaranty:
A. The principal shall be of good moral character, or, if the principal is not an individual, the principal shall be owned by individuals of good moral character;
B. As determined from creditors, employers, and other individuals who have personal knowledge of the principal:
(1) The principal shall have a reputation for financial responsibility, or
(2) If the principal is not an individual, a majority of the principal shall be owned by individuals with a reputation for financial responsibility;