Sec. 05.13.05.03. Eligible Loans

A. A loan is eligible under the Program if the loan:

(1) Is made by a financial institution that is eligible to participate in the Program under Regulation .04B of this chapter;

(2) Meets the financial institution's lending criteria;

(3) Has a term not exceeding 10 years;

(4) Is made to a certified minority business enterprise or a small business that will use the proceeds for a project or activity primarily located in Maryland;

(5) Has an interest rate that is lower than the interest rate the financial institution would charge for a loan for a similar purpose and term by at least:

(a) 2 percentage points; or

(b) The difference between the financial institution’s rate on a 60-month certificate of deposit and the interest rate acceptable to the Treasurer’s Office for its deposits;

(6) Does not exceed $1,000,000 when added to any other loans the borrower received under the Program;

(7) Has points or fees charged by the financial institution at closing not exceeding 1 percent of the loan amount; and

(8) Complies with all terms and conditions of this chapter.

B. The proceeds of a Program loan may not be used:

(1) For the furtherance of sectarian religious instruction;

(2) In connection with the design, acquisition, or construction of any building used or to be used as a place of sectarian religious worship or instruction; or

(3) In connection with any program or department of divinity for any religious denomination, including but not limited to religious services, religious instruction, or other activities that have an explicitly religious purpose.