3634

LAWS OF MARYLAND

Ch. 776

(2) A GUARANTEE OF THE LESSOR OF UP TO 50 PERCENT OF
THE INVESTMENT OR $50,000 BY THE AUTHORITY OF AN INVESTMENT MADE
BY A PROFESSIONAL INVESTOR IN THE QUALIFIED SECURITIES OF AN
ENTERPRISE.

(F)(1) "DEVELOPMENT COMPANY" MEANS AN ENTERPRISE

INCORPORATED UNDER THE LAWS OF THE STATE FOR THE PURPOSE OF
FURTHERING THE ECONOMIC DEVELOPMENT OF THE COMMUNITY AND ENVIRONS
OF THE COMPANY AND WITH THE AUTHORITY TO PROMOTE AND ASSIST THE
GROWTH AND DEVELOPMENT OF SMALL BUSINESS CONCERNS IN THE AREAS
COVERED BY THEIR OPERATIONS.

(2) A "DEVELOPMENT COMPANY" MAY BE ORGANIZED EITHER
AS A PROFIT OR NONPROFIT ENTERPRISE, AND INCLUDES CERTIFIED
DEVELOPMENT COMPANIES, COMMUNITY DEVELOPMENT CORPORATIONS, AND

DEVELOPMENT COMPANIES AND REVOLVING FUNDS ASSISTED BY THE

ECONOMIC DEVELOPMENT ADMINISTRATION.

(G)(1) (B) "ENTERPRISE" MEANS A SMALL BUSINESS ENTITY AS
DEFINED BY THE FEDERAL SMALL BUSINESS ADMINISTRATION, INCLUDING A
SOLE PROPRIETORSHIP, A PARTNERSHIP, A LIMITED PARTNERSHIP, A
CORPORATION, OR A JOINT VENTURE CARRYING ON A BUSINESS OR
PROPOSING TO CARRY ON A BUSINESS WITHIN THE STATE AND MEETS THE
REQUIREMENTS OF § 13-231 OF THIS SUBTITLE.

(H) "FEDERAL LEVERAGE" MEANS FINANCIAL ASSISTANCE PROVIDED
TO AN ENTERPRISE OR TO A QUALIFIED SMALL BUSINESS FINANCING
COMPANY BY THE SMALL BUSINESS ADMINISTRATION OR BY ANY OTHER
FEDERAL AGENCY, INCLUDING THE PURCHASE OR GUARANTY OF DEBT
INSTRUMENTS, THE PURCHASE OF PREFERRED SECURITIES, OR THE GRANT
OR LOAN OF FUNDS.

(I) "FINANCIAL AID" MEANS VENTURE CAPITAL FINANCING.

(2) (C) "EQUITY PARTICIPATION FINANCING" MEANS ANY
FINANCIAL ASSISTANCE PROVIDED UNDER THE PROGRAM INCLUDING
INVESTMENT OR GUARANTY OF INVESTMENT IN AN ENTERPRISE.

(J) (3) (D) "FRANCHISING FRANCHISE" MEANS A CONTRACT OR
AGREEMENT AND HAS THE MEANING USED IN ARTICLE 56, § 345 OF THE
ANNOTATED CODE. "FRANCHISE" INCLUDES ONLY THOSE FRANCHISE
OFFERINGS THAT ARE REGISTERED OR EXEMPT UNDER THE MARYLAND
FRANCHISE INVESTMENT LAW, ARTICLE 56, §§ 345 THROUGH 365D, OF THE
ANNOTATED CODE.

(K)(1) "INVESTMENT COMPANY" MEANS EITHER A CORPORATION OR
A LIMITED PARTNERSHIP TO WHICH A LICENSE HAS BEEN GRANTED BY THE

FEDERAL SMALL BUSINESS ADMINISTRATION FOR THE PURPOSE OF

PROVIDING CAPITAL TO SMALL BUSINESSES.

(2) "INVESTMENT COMPANY" INCLUDES INVESTMENT

COMPANIES LICENSED BY THE SMALL BUSINESS ADMINISTRATION UNDER §
301(C) OR § 301(D) OF THE FEDERAL SMALL BUSINESS INVESTMENT ACT.