MIDFA encourages private sector financing in economic development projects located in Priority Funding Areas. MIDFA facilitates capital access by issuing private activity revenue bonds and can provide credit insurance in the form of a deficiency guaranty to reduce lender’s risk. While the transaction size is generally not limited, the credit enhancement is subject to the applicable program limits.
Private Activity Revenue Bonds
- Taxable Bond: Provides access to long-term capital markets for primarily fixed asset financing.
- Tax-Exempt Bond: Provides access to long term capital markets for fixed asset financing at tax-exempt rates. Eligibility is limited by Federal tax law to 501(c)(3) non-profit organizations, manufacturing facilities and certain solid waste projects. Additional limitations apply to the specific transaction type.
Credit Insurance
- Conventional Program: Insures up to 80 percent, not to exceed $2.5 million of a transactions made by a financial institution. Export transactions may be insured up to 90 percent.
- Bond Program: Insures bonds up to 100 percent, not to exceed $7.5 million of taxable or tax-exempt bonds.
- Linked Deposits: In certain rural areas with qualifying high unemployment, MIDFA can provide a certificate of deposit to the lender as a funding source and pricing incentive to provide below market rate loans to an eligible small business. The certificate of deposit is not a guaranty or collateral to the loan.
For more information about this program please contact:
Tim Doyle - Greater Baltimore Region
Phone: 410-767-2369
Fax: 410-333-6931
Greg Cole - Western Maryland and Eastern Shore
Phone: 410-767-6376
Fax: 410-333-6931
Wyatt Shiflett - Capital Region and Southern Maryland
Phone: (410) 767-4779
Fax: (410) 333-6931
Jim Henry - Managing Director
Phone: 410-767-6353
Fax: 410-333-6931
