Direct Loans and Guarantees
Community Development Block Grant Program – Economic
Development (CDBG–ED)
CDBG–ED provides funding to commercial and industrial economic
development projects. Program funds are dispersed to a local
jurisdiction in the form of a conditional grant and are then used for
public improvements or loaned to a business.
- Project must create employment for
individuals
from low to moderate income in non-urban areas of the state, or
eliminate slum and blight conditions.
- The political subdivision may be liable
if the project fails.
- The use of funds is fairly broad and
includes the acquisition of fixed assets, infrastructure, and
feasibility studies.
For more information about this program see Maryland's
Direct Loans web site here or contact:
Les Hall
Phone: (410) 767-6356
Fax: (410) 333-6931
Maryland Economic Adjustment Fund
The Maryland Economic Adjustment Fund (MEAF) was established in 1994 as
a non-lapsing fund. The U.S. Economic Development Administration
and
the State of Maryland combined to provide $1,500,000 and $500,000,
respectively to assist small businesses. Since its inception, the
state has transferred $800,000 of assets to the fund.
This fund assists business entities in the state with
modernization of manufacturing operations, the development of
commercial applications for technology, and exploring and entering new
markets. Applicants must demonstrate credit worthiness, ability
to
repay the obligation, and an inability to obtain financing on
affordable terms through normal lending channels. A loan may not
be
used to relocate jobs from one commuting area to another. Funding
assistance through MEAF is available to small businesses in all regions
of the state.
For more information about this program
contact:
Les Hall
Phone: (410) 767-6356
Fax: (410) 333-6931
Maryland Small Business Development
Financing Authority
The Maryland Small Business Development Financing Authority (MSBDFA)
provides financing for small businesses that are not able to qualify
for financing from private lending institutions or owned by
socially
and economically disadvantaged persons.
- Contract Financing Program - Loan
guarantees and direct working capital and equipment loans to socially
or economically disadvantaged businesses that have been awarded
contracts mainly funded by government agencies and/or public utilities.
- Equity Participation Investment Program
-
Direct loans, equity investments, and loan guarantees to businesses in
franchising, technology-based industries, and for the acquisition of
profitable businesses.
- Long-Term Guaranty Program -
Provides loan guarantees and interest rate subsidies.
- Surety Bonding Program - Assists
small
contractors in obtaining bonding for primarily funded government or
public utilities contracts that require bid, performance, and payment
bonds.
For more information about this program contact:
Stan Tucker
Phone: (410) 333-4270
Fax: (410) 333-2552
