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.