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Ch. 635
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2007 Laws of Maryland
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(3) (i) The Authority shall find that there is a reasonable
probability that the Authority will recover its initial investment and an adequate
return on investment.
(ii) The Authority's investment shall be recoverable within:
1. 7 years of the equity participation financing in a
franchise;
2. 7 years of the equity participation financing in an
enterprise acquiring an existing business;
3. 10 years of the equity participation financing in a
technology-based business; or
4. 7 years of the equity participation financing in any
other type of business.
(4) The Authority's recovery shall be the greater of the current value
of the percentage of the equity investment in the enterprise or the amount of the
initial investment in the enterprise.
(5) The value of the business entity at the time of recovery shall be
determined after obtaining at least 1 independent appraisal of the value from an
appraiser selected from a list of at least 3 appraisers supplied by the Authority.
(c) The liability of the State and of the Authority in providing equity
participation financing is limited to its investments under the Program.
(d) When [applying] AN ENTERPRISE APPLIES to the Authority to acquire
an existing business, [an] THE enterprise OR ITS PRINCIPALS shall [have] MEET the
following minimum qualifications:
(1) The enterprise or its principals shall have[:
(i) A minimum net worth of at least $75,000 pledged as
security;
(ii) At least $75,000 in equity investment; or
(iii) A combination of a minimum net worth pledged as security
and] an equity investment[, totaling at least $75,000] EQUAL TO AT LEAST 5
PERCENT OF THE TOTAL COST OF THE ACQUISITION; and
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- 4020 -
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