Md. Code, Housing and Community Development § 4-223

§4–223. IN EFFECT

(a) A project qualifies as a business project if the project is:

(1) located in:

(i) an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; or

(ii) a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Baltimore City, Baltimore County, Charles County, Garrett County, Howard County, Montgomery County, Prince George’s County, Somerset County, or Wicomico County; and

(2) (i) acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved by a person or an entity for the purposes of carrying on a business whether or not for profit; or

(ii) eligible for funding from the Neighborhood Business Development Fund under § 6–310 of this article.

(b) Repayment of principal and interest for a business project may be secured by:

(1) real property;

(2) personal property;

(3) bank accounts;

(4) certificates of deposit, stocks, and bonds;

(5) credit enhancement, assurance, or guaranty; or

(6) any other collateral acceptable to the Administration.

(c) Financial assistance for a business project may be provided as:

(1) a loan;

(2) a reduction in the principal obligation of or interest rate on a loan or portion of a loan;

(3) a prepayment of interest on a subordinate or superior loan or portion of a loan;

(4) an assurance;

(5) a guarantee or other form of credit enhancement; or

(6) a promissory note that may be converted to an equity ownership interest and liquidated at the earliest opportunity to realize the highest market value for the Administration.

§4–223. ** TAKES EFFECT JULY 1, 2026 PER CHAPTER 380 OF 2022 **

(a) A project qualifies as a business project if the project is:

(1) located in:

(i) an area designated as a priority funding area under § 5–7B–02 of the State Finance and Procurement Article; or

(ii) a qualified opportunity zone designated under § 1400Z–1 of the Internal Revenue Code in Allegany County, Baltimore City, Baltimore County, Charles County, Garrett County, Howard County, Montgomery County, Prince George’s County, Somerset County, or Wicomico County; and

(2) (i) acquired, owned, developed, constructed, reconstructed, rehabilitated, or improved by a person or an entity for the purposes of carrying on a business whether or not for profit; or

(ii) eligible for funding from the Neighborhood Business Development Fund under § 6–310 of this article.

(b) Repayment of principal and interest for a business project may be secured by:

(1) real property;

(2) personal property;

(3) bank accounts;

(4) certificates of deposit, stocks, and bonds;

(5) credit enhancement, assurance, or guaranty; or

(6) any other collateral acceptable to the Administration.

(c) Financial assistance for a business project may be provided as:

(1) a loan;

(2) a reduction in the principal obligation of or interest rate on a loan or portion of a loan;

(3) a prepayment of interest on a subordinate or superior loan or portion of a loan;

(4) an assurance; or

(5) a guarantee or other form of credit enhancement.