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.  

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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.  

 

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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.

 

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.

 

 

 

 

 

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