Ch. 304                                    2003 LAWS OF MARYLAND

(ii) A business that has received or will receive a day care loan
insured by the Maryland Industrial Development Financing Authority; such
businesses shall be limited to financial assistance from the Fund of not more than
20% of the costs described in item (i) of this paragraph;

(6)     If [incurred by a local government] SUPPORTED BY A RESOLUTION
ADOPTED BY THE GOVERNING BODY OF THE JURISDICTION IN WHICH A PROJECT
MAY BE LOCATED, costs of feasibility studies; and

(7)     Up to 50% of the costs of preparing a county's or municipality's
strategy or plan for economic development, not to exceed a total of $50,000 in a 3-year
period.

(c) (1) Financial assistance from the Fund:

(i) May not exceed the lesser of $10,000,000 or 20% of the Fund
balance;

(ii) Except as provided in item (iii) of this paragraph, may not
exceed 70% of the total costs of the project being financed;

(iii) May constitute 100% of the total costs of the project being
financed if:

1.       The recipient is the Maryland Economic Development
Corporation; or

2.       The financial assistance is for an arts and entertainment
enterprise or arts and entertainment project;

(iv) If a loan for a significant strategic economic development
opportunity or for a specialized economic development opportunity, shall carry an
interest rate below the market rate of interest, as determined by the Department;

(v) If a loan for a local economic development opportunity or to a
local government, shall carry an interest rate not exceeding one-eighth of one percent
plus the net interest cost of the most recent State general obligation bond issue
preceding the approval of the loan;

(vi) Shall not bear a rate of interest less than 3% unless the project
funded by a loan is located in an area of high unemployment or the Department
determines that the borrower is carrying out a compelling economic development
initiative; and

(vii) May not be used to refinance existing debt.

(2) Loans from the Fund may not be for a term exceeding:

(i) For working capital - 3 years;

(ii) For financing machinery, equipment, furnishings, or fixtures -
the lesser of 15 years or the useful life of the asset, as determined by the Department;

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