Maryland was the first state to submit its state plan for the Small Business Credit Initiative to the U.S. Treasury
Three state agencies to incorporate funds to expand existing business lending and investment programs
ANNAPOLI, MD—Governor Larry Hogan announced today that the State of Maryland will distribute up to $ 198 million in federal aid for small businesses through the State Small Business Credit Initiative (SSBCI). Maryland was the first state in the nation to submit its SSBCI deployment plan to the US Treasury Department and today it was one of the first five states to be approved. “
Through a series of relief programs, our efforts to keep Maryland ‘open for business’ during the pandemic protected jobs and enabled one of the strongest and most sustainable recovery in the nation, Governor Hogan said. “We have one of the most aggressive plans in the country to get these resources out the door using our highly successful loan and investment programs to help our small businesses, particularly those in underserved communities ready for revitalization.”
Initially established by Congress in 2010 to provide loans and investments to disadvantaged small businesses, SSBCI received a $ 10 billion grant as part of the American Rescue Plan Act. SSBCI funds will be administered by three state agencies, including the Department for Maryland Housing and Community Development (DHCD), the Maryland Department of Commerce and Maryland Technology Development Corporation (TEDCO). Funds from SSBCI will be used to augment existing business lending programs to support businesses with limited growth opportunities due to the pandemic or historic divestment. SSBCI initiatives across the state of Maryland will target communities and areas with a high concentration of small, micro businesses and socially and economically disadvantaged individuals (LOCATIONS) to support ongoing state investment in disadvantaged communities.
DHCD will receive up to $ 103 million in funding through the Neighborhood BusinessWorks program. The program provides funding to new and expanding small businesses that impact and operate within designated areas of opportunity, priority funding areas, and investment areas of Maryland’s sustainable communities and community development finance institutions (CDFI) , often through partnerships with local and national CDFI.
“Neighborhood BusinessWorks has long been our department’s flagship corporate lending program with well-established infrastructure, processes and partnerships that have provided more than $ 70 million in capital to businesses under Governor Hogan’s leadership,” said the secretary of the DHCD Kenneth C. Holt. “This additional federal funding will allow this already successful program to significantly expand its reach and impact in both urban and rural Maryland.”
The Maryland Department of Commerce will receive up to $ 45 million for the Maryland Small Business Development Financing Authority (MSBDFA) program. Created in 1978 to promote the viability and expansion of socially and economically disadvantaged one-man businesses, MSBDFA is now available to small businesses that are unable to obtain adequate business finance on reasonable terms. In particular, the program has become an established resource for supporting the growth of minority and women’s businesses through a network of government agencies, local economic development organizations, banks and private equity firms, as well as numerous business associations, chambers of commerce and local professionals.
“For over 40 years, MSBDFA has helped thousands of small Maryland businesses reach their full potential and we are very pleased that an additional $ 45 million will be allocated to this important program,” said Maryland Secretary of Commerce Mike Gill. “These funds will provide a much-needed lifeline for many small businesses and help our state continue its economic recovery.”
TEDCO will receive up to $ 50 million and award funds to four existing technology-based programs targeting Maryland businesses and entrepreneurs. Three programs, the Venture Equity Fund, the Venture Capital Limited Partnership Equity Program and the Seeds Funds Equity Program, focus primarily on venture capital and startup financing. The fourth, the Social Impact Fund, provides investments and support to entrepreneurs who demonstrate an economic or social disadvantage. Through these four programs, TEDCO will continue to leverage its relationships with top-tier technology companies, entrepreneurs and investors in the state by partnering with universities, regional business accelerators and incubators, and other organizations.
“We want to express our thanks to our friends at DHCD for their leadership in bringing us to this point,” said Troy LeMaile-Stovall, CEO of TEDCO. “And this is about investing in individuals and communities who are underrepresented in our innovation ecosystem, while creating additional funds for TEDCO to invest in companies that will start and grow in Maryland, generating a more equitable future.”
The State of Maryland plans to begin distributing SSBCI resources through these programs in the summer of 2022. Business owners and lenders wishing to apply for funding should visit open.maryland.gov/ssbci to submit an expression of interest form from notify you when the funds come becomes available.
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