Sec. 05.04.11.03. Eligible Sponsors

Sponsors shall meet all of the following requirements to qualify for a loan:

A. Be a nonprofit organization;

B. Be in good standing and be qualified to do business in Maryland;

C. Have all necessary legal and corporate authority to incur the obligations of the loan;

D. Either:

(1) Be licensed to operate the project by the appropriate State agency, to the extent required by State law; or

(2) Enter into a management agreement acceptable to the Administration, with a manager acceptable to the Administration that:

(a) Is licensed to operate the project by the appropriate State agency, to the extent required by State law, and

(b) Meets the requirements of §§A, B, E, F and G of this regulation;

E. Either:

(1) Have a contract, acceptable to the Administration, with a State agency or county government; or

(2) Have a management agreement acceptable to the Administration with a manager acceptable to the Administration who has a contract as described in §E(1) of this regulation;

F. Demonstrate:

(1) Financial credibility and stability,

(2) The capability to undertake the project, and

(3) Either:

(a) The ability to manage the project as evidenced by at least 2 years of prior management of the project or comparable projects; or

(b) In the case of a manager acceptable to the Administration, with whom the borrower has a management agreement acceptable to the Administration, the ability of the manager to manage the project as evidenced by at least 2 years of prior management of the project or comparable project;

G. Not be under an order suspending or debarring the sponsor from participating in the Department's programs under COMAR 05.01.05, or under any similar order from any other State or federal agency; and

H. Not have defaulted under a Department or other governmental loan.