WILLIAM DONALD SCHAEFER, Governor Ch. 535

(a)  Under the Program, the Authority may provide equity
participation financing, including the purchase of qualified
securities issued by a franchise OR BY AN ENTERPRISE ACQUIRING AN
EXISTING BUSINESS, only after the enterprise has submitted an
application that contains a business plan, including:

(1)  A description of the [franchisee] FRANCHISOR OR
EXISTING BUSINESS and its management, product, and market;

(2)  A statement of the amount, immediacy of need, and
projected use of the capital required;

(3)  A statement of the potential economic impact of
the purchase;

(4)  Information that relates to the satisfaction of
the applicant's requirements of § 13-231 of this subtitle; and

(5)  Any other information the Authority requires.

(b)  Under the Program, any equity participation financing
shall satisfy the following requirements:

(1)  The Authority [shall not] MAY NOT:

(I)   [own] OWN securities representing more than
45 percent of the voting stock of any franchisee or own an
interest greater than 45 percent in any franchise; OR

(II) 1. OWN SECURITIES REPRESENTING MORE THAN
25 PERCENT OF THE VOTING STOCK OF ANY ENTERPRISE ACQUIRING AN
EXISTING BUSINESS; OR

2. OWN AN INTEREST GREATER THAN 25
PERCENT IN ANY ENTERPRISE ACQUIRING AN EXISTING BUSINESS.

(2)  The amount of the Authority's equity
participation financing [for any franchise shall not] MAY NOT:

(I)   [exceed] EXCEED $100,000 [and shall] FOR
ANY FRANCHISE AND MAY not exceed 45 percent of the total initial
investment in the franchise; OR

(II)  EXCEED $500,000 FOR ANY ENTERPRISE
ACQUIRING AN EXISTING BUSINESS AND MAY NOT EXCEED 25 PERCENT OF
THE TOTAL INVESTMENT IN THE ENTERPRISE ACQUIRING AN EXISTING
BUSINESS.

(3)  The total amount of equity participation
financing disbursed [shall] MAY not exceed $3,000,000 for a
calendar year.

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