Three Agencies Partner to Develop and Improve State Business
Loan and investment programs
Annapolis, MD—Governor Larry Hogan today announced that Maryland programs funded by the State Small Business Credit Initiative (SSBCI) are open. Up to $198 million in federal small business assistance is administered by three state agencies: the Maryland Department of Housing and Community Development (DHCD), the Maryland Department of Commerce, and the Maryland Technology Development Corporation ( TEDCO). These agencies will use funds to expand and improve nine existing state loan and investment programs.
“The State of Maryland’s small business programs are proven and effective, providing critical relief during the pandemic and supporting strong economic growth during our ongoing recovery,” Governor Hogan said. “This additional funding will ensure Maryland remains open for business by energizing these programs to increase capacity and better serve entrepreneurs and small businesses, especially those that create jobs and other opportunities that fuel the revitalization of disinvested communities. »
Created by Congress in 2010, SSBCI received a $10 billion allocation under the American Rescue Plan Act. Maryland was the first state in the nation to submit its SSBCI deployment plan to the United States Department of Treasury and was one of the first five states to be approved. The nine SSBCI-funded programs will support companies with limited growth opportunities, whether due to the pandemic or a historic divestment. Maryland’s statewide SSBCI initiatives will target communities and areas with high concentrations of small businesses, micro-enterprises, and socially and economically disadvantaged individuals (SEDI) to support the state’s continued investments in underserved communities.
BusinessWorks district. The DHCD will deploy up to $103 million and disburse the funds through three initiatives of the Neighborhood BusinessWorks program. The program provides financing to new and expanding small businesses that are impacting and operating in Maryland’s designated Opportunity Zones, Priority Funding Zones, and Investment Zones of Sustainable Communities and Community Development Financing Institutions (CDFI). The Neighborhood BusinessWorks Loan to Lender initiative directly supports CDFI’s revitalization and investment efforts, providing them with funds to lend back to local small businesses. The Neighborhood BusinessWorks Loan Participation Program helps eligible businesses acquire working capital and real estate. The Neighborhood BusinessWorks Venture Loans initiative supports strategic businesses with high job growth potential.
“Neighborhood BusinessWorks has provided more than $70 million in capital to small businesses under Governor Hogan’s leadership,” said DHCD Secretary Kenneth C. Holt. “These additional resources and new program initiatives will leverage the program’s successful partnerships and processes to help new and expanding businesses in cities, towns and communities across Maryland.”
Maryland Small Business Development Funding Authority. The Maryland Department of Commerce will deploy up to $45 million through two Maryland Small Business Development Financing Authority (MSBDFA) programs. Established in 1978 to promote the viability and expansion of businesses run by socially and economically disadvantaged people, MSBDFA is now available to small businesses that are unable to obtain adequate commercial financing on reasonable terms. In particular, the program has become an established resource for supporting the growth of minority and women-owned businesses through a network of government agencies, local economic development organizations, banks and corporations. private equity, as well as many trade associations, chambers of commerce and local professionals.
“The MSBDFA program is an important financial tool to help underserved small business owners and their communities across our state,” said Maryland Secretary of Commerce Mike Gill. “This federal funding has the potential to help many Maryland entrepreneurs and provide much-needed business assistance. We are grateful for this additional funding and look forward to helping our business community continue its economic recovery.
TEDCO programs. TEDCO will deploy up to $50 million and allocate the funds to four existing programs targeting Maryland technology companies and entrepreneurs. Three programs – the Venture Equity Fund, the Venture Capital Limited Partnership Equity Program and the Seeds Funds Equity Program – are primarily focused on venture capital and seed funding. The fourth, the Social Impact Fund, provides investment and support to entrepreneurs who are at an economic or social disadvantage. Through these four programs, TEDCO will continue to leverage its relationships with leading technology companies, entrepreneurs and investors in the state while collaborating with regional universities, accelerators and business incubators and other organizations.
“I want to first thank the DHCD for their leadership in ensuring that Maryland was one of the first states to receive approval,” said TEDCO CEO Troy LeMaile-Stovall. “These SSBCI funds will help TEDCO accelerate its mission of empowering technology innovation and early-stage entrepreneurship. Our $50 million will fund four programs – the Venture Capital Fund, the Venture Capital Sponsorship Program, the Seed Fund Program, and the Social Impact Funds – which help all innovators and entrepreneurs to realize their dreams and grow.
For more information on the nine Maryland business assistance programs supported by SSBCI and how to apply, visit http://open.maryland.gov/ssbci.