VETOES

(2) THE ENTERPRISE OR ITS PRINCIPALS SHALL HAVE 3 OR
MORE YEARS OF SUCCESSFUL EXPERIENCE WITH DEMONSTRATED
ACHIEVEMENTS AND MANAGEMENT RESPONSIBILITIES.

(E) WHEN BEING ACQUIRED, THE EXISTING BUSINESS SHALL MEET
THE FOLLOWING MINIMUM QUALIFICATIONS:

(1)  THE EXISTING BUSINESS SHALL BE IN EXISTENCE FOR
AT LEAST 5 YEARS;

(2)  THE EXISTING BUSINESS SHALL BE PROFITABLE FOR AT
LEAST 2 OF THE PREVIOUS 3 YEARS;

(3)  THE EXISTING BUSINESS SHALL HAVE SUFFICIENT CASH
FLOW TO SERVICE THE DEBT AND ENSURE ADEQUATE RETURN OF THE
AUTHORITY'S INVESTMENT;

(4)  THE EXISTING BUSINESS SHALL HAVE THE CAPACITY FOR
GROWTH AND JOB CREATION;

(5)  THE EXISTING BUSINESS SHALL HAVE ITS PRINCIPAL
PLACE OF BUSINESS IN MARYLAND; AND

(6)  THE EXISTING BUSINESS SHALL HAVE A STRONG
CUSTOMER BASE.

13-241.

(a)  There is an Equity Participation Investment Program
Fund established as a nonlapsing, revolving fund.

(b)  The Fund consists of:

(1)  Money drawn from the Small Business Development
Guaranty Fund;

(2)  Money appropriated by the State to the Fund;

(3)  Money made available to the Fund through federal
programs or private contributions;

(4)  Income from investments that the State Treasurer,
on instruction of the Authority, makes from moneys in the Fund;

(5)  Proceeds from the sale, disposition, lease or
rental by the Authority of collateral related to equity
participation financing provided by the Authority;

(6)  Premiums, fees, royalties, and repayments of
principal, interest and investments paid by and on behalf of
[franchise] enterprises to the Authority under the terms of
equity participation financing provided by the Authority; and

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