The staff at AAEDC can work with you to fill financial gaps in your project by making banking and investor connections for you. If your business is eligible, we can provide direct financial assistance through the Arundel Business Loan (ABL) Fund. If an alternative source of funding is needed, we can connect you to one of the many programs available through our partner organizations, including the Maryland Department of Business and Economic Development (DBED), the Maryland Department of Housing and Community Development (DHCD), and the U.S. Small Business Administration (SBA).
Arundel Business Loan Fund
The Arundel Business Loan Fund (ABL), a program of the Anne Arundel Economic Development Corporation, provides loans with a maximum of $300,000 to new and expanding businesses operating in Anne Arundel County. Loan proceeds may be used for working capital, equipment, furniture, and leasehold improvements. SBA lending regulations apply since the loans involve SBA guarantees.
Extensive information on the ABL Fund is available on the AAEDC’s website and on the Small Business Resource Center’s website. Both sites have ABL's loan guidelines, an application and a personal financial statement. If necessary, the SBRC is prepared to assist with preparing the loan application.
Business Corridor Investment Loan Program
The Business Corridor Investment Loan Program (BCIP) has been established to encourage economic activity in four pilot project areas in Anne Arundel County and the City of Annapolis Revitalization Districts. The BCIP offers qualified business owners zero interest loans of up to $35,000 for improvements to the exterior and interior of their business.
The four pilot program areas include: Route 2 Corridor in Brooklyn Park, the Route 2 Corridor and Glen Burnie Town Center in Glen Burnie, the Sun Valley/Mountain Road Corridors in Pasadena, and the West Street Revitalization District in the City of Annapolis.
Eligible improvements include:
- Renovation of building exteriors
- Site improvements such as landscaping, signage, or lighting
- Interior improvements such as painting, flooring, plumbing, or electricity
For more information on financing your business in Anne Arundel County, please contact Joe Timer at 410-222-7410.
Additional Financing Programs
The Neighborhood Business Development Program, operated by the Maryland Department of Housing and Community Development (DHCD), provides flexible gap financing through loans to small businesses starting or expanding in locally designated revitalization areas throughout the state. Loans ranging from $25,000 to $500,000 are provided to small businesses at below market interest rates. Loans and grants are made to non-profit organizations whose activities contribute to a broader revitalization effort. Each project is assessed for financial need, up to 50 percent of total project costs. The target loan term is five to 10 years, depending on use and loan size.
Job Creation Tax Credit Companies locating to Anne Arundel County are eligible for a Job Creation Tax Credit offered to newly locating or expanding companies in the State of Maryland. The Company could be eligible for a Job Creation Tax Credit if it establishes or expands a Maryland business facility that is primarily engaged in warehousing and distribution and located within a Priority Funding Area as defined by the Job Creation Tax Credit statute. The credit granted will be the lesser of $1000 or 2.5% of a year’s wages for each new employee in a qualified position. Assuming 80 qualified positions are created within a 2-year period, we estimate that the job creation tax credit would be $80,000.
Maryland Venture Fund
The Maryland Venture Fund, started in 1994, is a state-funded seed and early-stage equity fund. The Fund is an evergreen fund and receives annual allocations from the Maryland State Legislature. The Fund makes direct investments in technology and life science companies and indirect investments in venture capital funds. Approximately 60 percent of the Fund is invested in technology companies in the areas of software, communications, and IT security, and 40 percent of the Fund is invested in life sciences companies in the areas of therapeutics, medical devices, and diagnostics. The Fund has invested as a limited partner in a total of nine venture funds since 1994.
Maryland Economic Development Assistance Authority and Fund (MEDAAF)
There are five financing capabilities offered through the Maryland Economic Development Assistance Authority and Fund (MEDAAF), with assistance being provided to the business community and political jurisdictions. To qualify for assistance from MEDAAF, applicants are restricted to businesses located within a priority funding area and an eligible industry sector. With a few exceptions, assistance cannot exceed 70 percent of the total project costs unless the recipient is the Maryland Economic Development Corporation (MEDCO), which can request 100 percent assistance.
Maryland Small Business Development Financing Authority
The Maryland Small Business Development Financing Authority (MSBDFA) provides financing for small businesses and those owned by socially and economically disadvantaged persons through four programs managed by Meridian Management Group:
- The Contract Financing Program provides loan guarantees and direct working capital and equipment loans to eligible businesses that have been awarded contracts mainly funded by government agencies and/or public utilities.
- The Equity Participation Investment Program provides direct loans, equity investments, and loan guarantees to eligible businesses in franchising, technology-based industries and for the acquisition of profitable businesses.
- The Long-Term Guaranty Program provides loan guarantees and interest rate subsidies.
- The Surety Bonding Program assists contractors in obtaining bonding for government or public utilities contracts.
For more information about this program please contact:
Stanley W. Tucker, Executive Director
Phone: 410-333-4270
Fax: 410-333-2552
Additional Benefits
Property Tax Cap Anne Arundel County has a voter-mandated property tax cap. The effect of the property tax cap has created one of the lowest effective property tax rates ($0.95) in the region. This low tax structure would also affect business costs in regard to the business personal property tax and result in yearly tax savings.
Inventory Tax Exemption Anne Arundel County exempts 100% of commercial inventory from personal property tax.
Utility Incentives Baltimore Gas & Electric (BGE) provides electric price reductions for new and expanding businesses in their service territory. AAEDC can work with you and BGE to determine if you qualify for reduced utility rates. Discounts are determined according to each account and may include a 20% reduction over three years.
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