You are trying to return a raw request. The request is evaluated only when it is listed. Luckily for you, the ToArray method relieves the pain of enumeration and storage. Just adding it at the end of your request, you have to fix it.
return ( from c in db.tblSearches where c.SectionID == SectionID && c.Featured select new[] { c.Term } ).ToArray();
EDIT
Looking in more detail, it is possible:
return ( from c in db.tblSearches where c.SectionID == SectionID && c.Featured select new[] { c.Term } ).SelectMany(x => x).ToArray();
to smooth out the results of your query or even (less redundantly):
return ( from c in db.tblSearches where c.SectionID == SectionID && c.Featured select c.Term ).ToArray();
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