Sec. 14.29.04.03. Eligible Borrowers and Eligible Activities

A. An entity is eligible to receive a loan under the Program if the entity:

(1) Is a:

(a) Local jurisdiction;

(b) Nonprofit organization or a business entity that:

(i) Is in good standing and qualified to do business in Maryland; and

(ii) Has the legal capacity and all necessary legal authority to be obligated by the loan; or

(c) An individual who has the legal capacity and all necessary legal authority to be obligated by the loan; and

(2) Is authorized to apply for the loan by the heritage area management entity for the certified heritage area that will benefit from the loan.

B. The Authority may provide a loan to an entity eligible under §A of this regulation if the loan is for purposes of funding:

(1) An activity that will:

(a) Be undertaken within a certified heritage area; and

(b) Further or complete an activity identified in the management plan for the certified heritage area; and

(2) Is:

(a) A capital project;

(b) The purchase of capital equipment, furnishings, or inventory; or

(c) Working capital to be used in conjunction with a capital project.

C. For an activity that involves improvement to leasehold property, the remaining term of the lease at the time the loan is made must not be less than the term of the loan.