Direct Loans and Guarantees

Community Development Block Grant Program – Economic Development (CDBG–ED)

CDBG–ED provides funding to commercial and industrial economic development projects. Program funds are dispersed to a local jurisdiction in the form of a conditional grant and are then used for public improvements or loaned to a business.

Project must create employment for individuals from low to moderate income in non-urban areas of the state, or eliminate slum and blight conditions.
The political subdivision may be liable if the project fails.
The use of funds is fairly broad and includes the acquisition of fixed assets, infrastructure, and feasibility studies.

For more information about this program contact:
Les Hall
Phone: (410) 767-6356
Fax: (410) 333-6931

Maryland Economic Adjustment Fund
The Maryland Economic Adjustment Fund (MEAF) was established in 1994 as a non-lapsing fund. The U.S. Economic Development Administration and the State of Maryland combined to provide $1,500,000 and $500,000, respectively to assist small businesses. Since its inception, the state has transferred $800,000 of assets to the fund.

This fund assists business entities in the state with modernization of manufacturing operations, the development of commercial applications for technology, and exploring and entering new markets. Applicants must demonstrate credit worthiness, ability to repay the obligation, and an inability to obtain financing on affordable terms through normal lending channels. A loan may not be used to relocate jobs from one commuting area to another. Funding assistance through MEAF is available to small businesses in all regions of the state.

For more information about this program contact:
Les Hall
Phone: (410) 767-6356
Fax: (410) 333-6931

Maryland Small Business Development Financing Authority
The Maryland Small Business Development Financing Authority (MSBDFA) provides financing for small businesses that are not able to qualify for financing from private lending institutions or owned by socially and economically disadvantaged persons.

Contract Financing Program - Loan guarantees and direct working capital and equipment loans to socially or economically disadvantaged businesses that have been awarded contracts mainly funded by government agencies and/or public utilities.

Equity Participation Investment Program - Direct loans, equity investments, and loan guarantees to businesses in franchising, technology-based industries, and for the acquisition of profitable businesses.

Long-Term Guaranty Program - Provides loan guarantees and interest rate subsidies.

Surety Bonding Program - Assists small contractors in obtaining bonding for primarily funded government or public utilities contracts that require bid, performance, and payment bonds.

For more information about this program contact:

Stan Tucker
Phone: (410) 333-4270
Fax: (410) 333-2552