ANNAPOLIS, Md.—Governor Larry Hogan at present introduced that the State of Maryland will deploy as much as $198 million in federal small enterprise aid by way of the State Small Business Credit Initiative (SSBCI). Maryland was the primary state within the nation to submit its SSBCI deployment plan to the United States Treasury Department, and at present was one of many first 5 states to be permitted.“
“Through a number of relief programs, our efforts to keep Maryland ‘open for business’ during the pandemic have protected jobs and empowered one of the strongest and sustainable recoveries in the nation,” mentioned Governor Hogan. “We have one of the most aggressive plans in the country to get these resources out the door utilizing our very successful lending and investment programs to help our small businesses, particularly those in underserved communities primed for revitalization.”
Initially established by Congress in 2010 to supply loans and investments to underserved small companies, SSBCI obtained a $10 billion allocation as a part of the American Rescue Plan Act. The SSBCI funds will probably be administered by three state businesses, together with the Maryland Department of Housing and Community Development (DHCD), the Maryland Department of Commerce, and the Maryland Technology Development Corporation (TEDCO). The funds from SSBCI will probably be used to enhance current enterprise lending applications to assist companies with restricted alternatives for progress whether or not as a result of pandemic or historic disinvestment. Maryland’s statewide SSBCI initiatives will goal communities and areas with a excessive focus of small, micro, and Socially and Economically Disadvantaged Individual (SEDI) companies to assist ongoing state investments in underserved communities.
DHCD will obtain as much as $103 million and disburse the funds by way of the Neighborhood BusinessWorks program. The program offers financing to new and increasing small companies impacting and working inside Maryland’s designated Opportunity Zones, Priority Funding Areas, and Sustainable Communities and Community Development Financing Institution (CDFI) Investment Areas, typically by way of partnerships with native and nationwide CDFIs.
“Neighborhood BusinessWorks has long been our department’s flagship business lending program with established infrastructure, processes, and partnerships that have provided more than $70 million in capital to businesses under Governor Hogan’s leadership,” mentioned DHCD Secretary Kenneth C. Holt. “This additional federal funding will enable this already successful program to significantly expand its reach and impact in both urban and rural Maryland.”
The Maryland Department of Commerce will obtain as much as $45 million for the Maryland Small Business Development Financing Authority (MSBDFA) program. Created in 1978 to advertise the viability and growth of Socially and Economically Disadvantaged Individual-led companies, MSBDFA is now accessible to small companies which are unable to acquire sufficient enterprise financing on affordable phrases. In specific, this system has turn into a well-established useful resource to assist the expansion of minority and women-owned companies by way of a community of presidency businesses, native financial improvement organizations, banks, and personal fairness firms, in addition to quite a few enterprise associations, chambers of commerce, and native professionals.
“For more than 40 years, MSBDFA has helped thousands of small businesses in Maryland reach their full potential, and we are very pleased that an additional $45 million will be allocated to this important program,” mentioned Maryland Commerce Secretary Mike Gill. “These funds will provide a much-needed lifeline for many small businesses and help our state continue its economic recovery.”
TEDCO will obtain as much as $50 million and can allocate the funds into 4 current applications concentrating on technology-based Maryland companies and entrepreneurs. Three applications—the Venture Equity Fund, Venture Capital Limited Partnership Equity program, and Seeds Funds Equity program—are primarily centered on enterprise capital and startup funding. The fourth, the Social Impact Fund, offers funding and assist to entrepreneurs who exhibit financial or social drawback. Through these 4 applications, TEDCO will proceed to leverage its relationships with top-tier know-how firms, entrepreneurs, and traders within the state whereas collaborating with universities, regional enterprise accelerators and incubators, and different organizations.
“We want to express our thanks to our friends at DHCD for their leadership on getting us to this point,” mentioned TEDCO CEO Troy LeMaile-Stovall. “And this point is about investing in individuals and communities that are underrepresented in our innovation ecosystem, while also creating additional funds for TEDCO to invest in firms that will start and scale in Maryland – generating a more equitable future.”
The State of Maryland expects to start deploying SSBCI assets by way of these applications in the summertime of 2022. Business house owners and lending establishments wishing to use for financing ought to go to open.maryland.gov/ssbci to submit an expression of curiosity type to be notified when funds turn into accessible.