Maryland Economic Development Assistance Authority and Fund
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.
The specific capabilities are:
Significant Strategic Economic Development Opportunities: A project that provides eligible industries with a significant economic development opportunity on a statewide or regional level.
- Assistance is provided to a business in the form of a loan.
- Maximum assistance cannot exceed the lesser of $10 million or 20 percent of the current fund balance.
Local Economic Development Opportunity: A business that provides a valuable economic development opportunity to the jurisdiction in which the business is located and is a priority for the governing body of that jurisdiction.
- The local jurisdiction must sponsor the business and must participate in the form of a guarantee, a direct loan, or a grant in an amount equal to at least 10 percent of the State's financial assistance.
- Loans may be up to $5 million, while conditional loans and grants may be up to $2 million.
Direct Assistance to Local Jurisdictions or MEDCO: DBED may provide financial assistance to a local jurisdiction for local economic development needs.
- The total amount of assistance cannot exceed $3 million unless the jurisdiction is a "qualified distressed county."
- The use of funds includes land acquisition, infrastructure improvements, acquisition of fixed assets, leasehold improvements, up to 70 percent of the cost of a feasibility study and up to 50 percent of the cost of preparing a local economic development strategic plan.
Regional or Local Revolving Loan Fund: Grants to local jurisdictions to help capitalize local revolving loan funds.
- Eligible applicants include a county or regional economic development agency, whether public or private. A jurisdiction may transfer all or a portion of its allocation to a regional revolving loan fund.
- Each jurisdiction may receive a grant of $250,000 annually.
- To qualify for a grant, the local government must provide a matching grant of funds to the local revolving loan fund.
Special Purposes Programs: These programs target specific funding initiatives that are deemed critical to the state's economic health and development.
- The specific program determines the level and type of financial assistance provided.
- The special purpose initiatives required by the legislature include the Brownfields Revitalization Incentive, Seafood and Aquaculture, Animal Waste, Arts & Entertainment, and Child Care Center programs.
Economic Development Opportunities Fund (Sunny Day Fund): This fund promotes Maryland's participation in extraordinary economic development opportunities that provide significant returns to the state through creating and retaining employment as well as the creation of significant capital investments in Priority Funding Areas. These actions must be approved by the State’s Legislative Policy Committee.
- Applicants must possess a strong balance sheet and be credit worthy. Projects must be consistent with the state's strategic economic development plan.
- Substantial employment, particularly in areas of high unemployment, must be created by the project.
- Participants must provide a minimum capital investment of at least five times the amount of the Sunny Day assistance.