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Unannotated Code of Maryland (Last Updated: May 16, 2014) |
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ECONOMIC DEVELOPMENT |
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DIVISION I. DEPARTMENT OF BUSINESS AND ECONOMIC DEVELOPMENT |
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TITLE 6. ECONOMIC DEVELOPMENT TAX INCENTIVES |
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SUBTITLE 5. INVEST MARYLAND PROGRAM |
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PART III. DESIGNATED CAPITAL |
§ 6-511. General provisions
Latest version.
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(a) Deposit into Enterprise Fund. -- All designated capital from purchasers shall be deposited into the Enterprise Fund to be invested as provided in this subtitle.
(b) Allocation. -- The Department shall allocate designated capital as follows:
(1) 67% to one or more venture firms to fund the making of qualified investments based on the criteria set forth in this subtitle, provided, that not more than 20% of this amount may be invested in the side car fund affiliates of the venture firms; and
(2) 33% to the Enterprise Fund, to be allocated:
(i) $ 250,000 to the Rural Maryland Council for its operational expenses;
(ii) 75% of the remaining amount to fund the making of qualified investments in qualified businesses under the existing policies and procedures of the Enterprise Fund under Title 5, Subtitle 6 of this article; and
(iii) 25% of the remaining amount to the Financing Authority Equity Participation Investment Program, to be invested in qualified businesses in accordance with the policies and procedures of the Financing Authority under Title 5, Subtitle 5, Part V of this article.
(c) Portion to be used for qualified investments. -- It is the goal of the State that a portion of the designated capital received under subsection (b)(2)(ii) of this section be used to make qualified investments in qualified businesses located in rural areas of the State.
(d) Contract between Department and venture firm. -- As soon as practicable after the Department receives each installment of designated capital, the Department and each venture firm that has been allocated designated capital shall enter into a contract under which the allocated amount of designated capital will be transferred by the Department to the venture firm for investment as provided in this subtitle.
(e) Department to secure commitment of purchasers. -- The Department shall secure the commitment of the purchasers in accordance with § 6-512 of this subtitle.