Governor Larry Hogan – Official website for the Governor of Maryland

A partnership of three agencies to expand and improve state business
Loan and investment programs

Annapolis, MD— Governor Larry Hogan today announced the opening of Maryland programs funded by the State Small Business Loan Initiative (SSBCI). Up to $198 million in federal small business relief 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 state business loan and investment programs.

“Maryland’s small business programs are proven and effective, providing critical relief during the pandemic and supporting strong economic growth during our ongoing recovery,” said Governor Hogan. “This additional funding will ensure Maryland remains open for business by filling these programs to increase capacity and better serve entrepreneurs and small businesses, especially with other opportunities that create jobs and encourage the revitalization of marginalized communities.”

In the year Created by Congress in 2010, SSBCI received a $10 billion appropriation as part of the America’s Rescue Plan Act. Maryland was the first state to submit its SSBCI deployment plan to the United States Department of the Treasury and was one of the first five states to do so. The nine programs sponsored by SSBCI support businesses that have limited growth opportunities due to the pandemic or historical investment. Maryland’s statewide SSBCI initiatives target communities and high-volume micro, micro, and socially and economically disadvantaged individual (SEDI) businesses to support state investments in underserved communities.

Neighboring businesses. DHCD will deploy up to $103 million and disburse the funds through three Neighborhood BusinessWorks programs to new and expanding small businesses that make an impact and operate in Maryland’s designated Opportunity Zones, Priority Funding Areas, and Sustainable Communities and Community Development Finance Facility (CDFI) investment areas. Provides financial support. The Neighborhood BusinessWorks Loan To Lender initiative directly supports CDFI’s stimulus and investment efforts, providing financing to local small businesses to refinance. The Neighborhood BusinessWorks Loan Participation Program assists eligible businesses with working capital and real estate purchases. The Neighborhood BusinessWorks Venture Loans initiative supports strategic businesses with high job growth.

“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 help build on the program’s successful partnerships and processes to help new and expanding businesses in cities, towns and communities across Maryland.”

Maryland Small Business Development Finance Authority The Maryland Department of Commerce will deploy up to $45 million through two Maryland Small Business Development Finance Authority (MSBDFA) programs. In the year Created in 1978 to promote the viability and expansion of businesses run by socially and economically disadvantaged individuals, the MSBDFA is now designed for small businesses that cannot access adequate business financing on affordable terms. In particular, this program has become a well-established resource to support the growth of minority and women’s businesses using government agencies, local economic development organizations, banks and private equity firms, as well as numerous trade associations and chambers. business, and environmental experts.

“The MSBDFA program is an important financial tool to help underserved small business owners and their communities across our state,” said Maryland Commerce Secretary Mike Gill. “This federal funding has the potential to help many entrepreneurs in Maryland and provide the business assistance they need. 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-based businesses and entrepreneurs. Three programs—the Venture Equity Fund, the Venture Capital Limited Partnership Equity Program, and the Seed Fund Equity Program—focus primarily on venture capital and startup funding. Fourth, social impact funds provide investment and support to entrepreneurs who demonstrate economic or social impact. Through these four programs, TEDCO will continue to engage with high-tech companies, entrepreneurs, and investors in collaboration with universities, regional business incubators and incubators, and other organizations.

“I want to thank DHCD for their leadership in ensuring that Maryland is one of the first states to be approved,” said TEDCO CEO Troy LeMay-Stovall. “These SSBCI funds will help TEDCO accelerate our mission of encouraging early-stage technology innovation and entrepreneurship. Our $50M will be used to support four programs—Venture Equity Fund, Venture Capital Limited Partnership Equity Program, Seed Fund Equity Program, and Social Impact Fund—all helping innovators and entrepreneurs achieve their dreams and scale.

For more information about the nine Maryland business assistance programs sponsored by SSBCI and how to apply, visit http://open.maryland.gov/ssbci.