Ch. '658                                    LAWS OF MARYLAND

(2)  The loan is to be used to perform a contract for
a project that a federal, State, or local government finances;

(3)  The part of the loan to be guaranteed does not
exceed $250,000; and

(4)  The loan to be guaranteed is to be used
[primarily] for:

(I)   [working] WORKING capital; OR

(II)  EQUIPMENT NEEDED TO PERFORM THE CONTRACT,
THE COST OF WHICH CAN BE REPAID FROM CONTRACT PROCEEDS, IF THE
AUTHORITY HAS ENTERED INTO AN AGREEMENT WITH THE APPLICANT
NECESSARY TO SECURE THE LOAN OR GUARANTEE.

(b) A guaranty that the Authority makes shall be limited to
not more than the term of the government contract, unless the
Authority finds that a longer term better carries out the
purposes of this subtitle.

13-229.

(a) The Authority may utilize the Contract Financing Fund
to guarantee a person's proposed equity investment in the
applicant only if:

(1)  The applicant meets the requirements of this
subtitle;

(2)  The amount of the equity investment to be
guaranteed does not exceed the lesser of:

(i) 10 percent of the person's equity
investment in the applicant; or

(ii) $250,000; [and]

(3)  The equity investment to be guaranteed is to be
used [primarily for working capital] to perform a contract for a
project that a federal, State,' or local government finances; AND

(4)  THE EQUITY INVESTMENT TO BE GUARANTEED IS TO BE
USED FOR:

(I)  WORKING CAPITAL; OR

(II)  EQUIPMENT NEEDED TO PERFORM THE CONTRACT,
THE COST OF WHICH CAN BE REPAID FROM CONTRACT PROCEEDS, IF THE
AUTHORITY HAS ENTERED INTO AN AGREEMENT WITH THE APPLICANT
NECESSARY TO SECURE THE LOAN OR GUARANTEE.

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