S.B. 338                                                        VETOES

(4)      PREPAYMENT OF INTEREST ON A SUBORDINATE OR SUPERIOR
LOAN OR PORTION OF A LOAN;

(5)      ASSURANCE;

(6)      GUARANTEE; OR

(7)      ANY OTHER FORM OF CREDIT ENHANCEMENT.

(B)     THE DEPARTMENT SHALL REVIEW ALL APPLICATIONS FOR FINANCIAL
ASSISTANCE.

(C)     APPLICATIONS SHALL BE SUBMITTED BY A SPONSOR AN APPLICANT
WHICH MAY BE A FOR PROFIT OR NONPROFIT SMALL BUSINESS.

(D)     TO QUALIFY FOR FINANCIAL ASSISTANCE, A SPONSOR'S THE
APPLICATION MUST DEMONSTRATE THAT:

(1)      THE PROJECT HAS SUFFICIENT BINDING SIGNIFICANT
COMMITMENTS FOR FUNDING FROM OTHER PRIVATE AND NONSTATE PUBLIC
SOURCES THAT ARE SUFFICIENT TO COMPLETE THE PROJECT WITH THE FUNDS
FROM THE NEIGHBORHOOD BUSINESS DEVELOPMENT PROGRAM;

(2)      THE FINANCIAL ASSISTANCE FROM THE NEIGHBORHOOD BUSINESS
DEVELOPMENT FUND IS THE LEAST AMOUNT NECESSARY TO MAKE THE PROJECT
FINANCIALLY FEASIBLE;

(3)      THE PROJECT IS READY TO PROCEED UPON FUNDING OF FINANCIAL
ASSISTANCE FROM THE PROGRAM; AND

(4)      THE LOCAL JURISDICTION ADOPTED A LOCAL RESOLUTION
EXPRESSING SUPPORT FOR THE PROJECT.

2-1305.

THE DEPARTMENT SHALL:

(1)      MANAGE, SUPERVISE, AND ADMINISTER THE PROGRAM;

(2)      ADOPT RULES AND REGULATIONS TO CARRY OUT THE PROGRAM IN
CONFORMANCE WITH STATUTORY REQUIREMENTS; AND

(3)      ADOPT POLICIES AND PROCEDURES THAT ENCOURAGE SMALL
BUSINESS DEVELOPMENT IN DESIGNATED NEIGHBORHOODS FOR EACH CATEGORY
OF FINANCING DESCRIBED UNDER § 2-1304(A) OF THIS SUBTITLE, ESTABLISH
MINIMUM PERCENTAGES OR AMOUNTS OF PRIVATE AND NONSTATE PUBLIC
FUNDING THAT THE APPLICANT IS REQUIRED TO SECURE BEFORE THE
DEPARTMENT MAY DETERMINE THAT THE APPLICANT IS QUALIFIED FOR THE
PROGRAM.

2-1306.

(A) FINANCIAL ASSISTANCE MAY BE USED TO FINANCE A PORTION OF THE
DEVELOPMENT COSTS OF A NEIGHBORHOOD BUSINESS DEVELOPMENT PROJECT.

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