Loan; Loan Guarantee; Subsidy; Technical Assistance
MSBDFA promotes the viability and expansion of businesses owned by economically and socially disadvantaged entrepreneurs. The program's objective is to promote the viability and expansion of businesses owned by economically and socially disadvantaged entrepreneurs. Specifically, a private contractor manages the four MSBDFA components and the Maryland Department of Commerce provides financing for the approved small businesses. Program components include: Contract Financing Program, Equity Participation Program, Long Term Guaranty Program, and the Surety Bonding Program.
The Contract Financing Program (CFP) provides financial assistance to eligible businesses in the form of direct loans and loan guaranties. The Guaranty Fund Program (GFP) provides financial assistance to eligible businesses in the form of loan guaranties and interest rate subsidies for loans made by financial institutions. Surety Bond Program (SBP) assists eligible small businesses in obtaining bid, performance or payment bonds necessary to perform on contracts where the majority of funds are provided by a government agency, public utility company or private entity. The purpose of the Equity Participation Investment Program (EPIP) is to expand business ownership by socially and economically disadvantaged entrepreneurs and small businesses that do not meet the established credit criteria of financial institutions and are unable to obtain adequate business financing on reasonable terms through normal financing channels. InvestMaryland is designed to expand business ownership by socially or economically disadvantaged entrepreneurs in early, mid and late stage companies in the areas of information technologies, cybersecurity, broadband and wireless communications; green technology, broadcasting & media and services that improve business processes.
Eligible Recipients Detail:
MSBDFA clients include all small businesses unable to obtain adequate business financing on reasonable terms through normal financing channels.
Last Mile Connectivity; Broadband Enabled Devices (General); Broadband-Related Industry; Building Connectivity
Eligible Purpose Detail:
MSBDFA uses include working capital, supplies and materials, machinery and equipment acquisition, land acquisition or real estate improvements. Other uses include the purchase of an existing franchise, construction or renovation and franchise fees or obtaining bid, performance and payment bonds for contracts, which receive the majority of their funding from federal, state or local government.
Other Eligibility Criteria:
Funding terms vary according to participation in the Contract Financing Program, Equity Participation Program, Long Term Guaranty Program, and the Surety Bonding Program.