Business Assistance & Incentives
CITY OF COLLEGE PARK
Commercial Tenant Improvement Program: The City is offering up to $25,000 in grant funds for leasehold improvements for new and expanding retail businesses. The reimbursement grant will cover up to 50% of the total improvement costs for qualifying businesses. The program will target locally-owned and independent businesses that fill a void in the City’s retail environment such as an apparel store, coffee shop, full service restaurant, and health club. Use the following links to get the guidelines and an application for this program.
Retail Business Assistance Fund: The City is offering up to $5,000 in grant funds for leasehold improvements of existing retail businesses. The reimbursement grant will cover up to 50% of the total improvement costs for qualifying businesses. The program’s initial deadline is November 15, 2013 at 5:00pm and applicants will be ranked on various criteria with the highest scoring applicants receiving grants. Use the following links to review the guidelines and application for this program.
For more information about these programs contact Michael Stiefvater, Economic Development Coordinator, at (240) 487-3543 or email@example.com.
PRINCE GEORGE’S COUNTY ECONOMIC DEVELOPMENT CORPORATION
Economic Development Incentive Fund: The $50 million fund is for the expansion of the County’s commercial tax base, promotion of major development and redevelopment opportunities, TOD development, job retention and attraction, and growth of key industry sectors.
Eligible uses include land acquisition, building construction and improvement, equipment acquisition and working capital. Additional details regarding the program can be found here.
For more information about this program contact the Prince George’s Economic Development Corporation at (301) 583-4601.
PRINCE GEORGE’S COUNTY FINANCIAL SERVICES CORPORATION
Small Business Growth Fund: This program targets businesses with 25 or fewer employees in Prince George’s County. Funding from this source is often directed to the expansion of existing businesses, but start-up funding is considered on a case-by-case basis. Funding can be used for building renovations or leasehold improvements.
SBA 504: This federal program is administered through the Prince George’s County Financial Services Corporation. The target of this program is healthy, expanding small businesses, located in Prince George’s County. Through this program, the PGCFSC offers financing at below-market rates, which can be used to buy land, machinery or buildings, construct buildings, or make leasehold improvements.
ACE-NET: This program offers equity financing from $250,000 to $3 million for smaller-scale entrepreneurs looking for equity financing. This program is also administered through the Prince George’s County Financial Services Corporation.
For more information about these programs contact Jacob Willis, Business Development Manager at (301) 883-6900 firstname.lastname@example.org.
Maryland Economic Development Assistance Authority and Fund (MEDAAF)
Significant Strategic Economic Development Opportunities: This program provides projects within priority funding areas and eligible industry sectors with loans. Loans offered cannot exceed the lesser of $10 million or 20% of the current fund balance.
Economic Development Opportunities Fund (Sunny Day Fund): This fund promotes Maryland’s participation in extraordinary economic development opportunities that provide significant returns to the state through creating and retaining employment. Projects must also be located within priority funding areas and eligible industry sectors. This program also serves as the funding sources for capital investments in Priority Funding Areas.
Applicants must possess a strong balance sheet and be credit worthy. Projects must be consistent with the state’s strategic economic development plan. Substantial employment, particularly in areas of high unemployment, must be created by the project. Participants must provide a minimum capital investment of at least five times the amount of the Sunny Day assistance.
For more information about these programs, contact Wyatt Shiflett, Capital Region and Southern Maryland, Phone at (410) 767-4779.
MARYLAND INDUSTRIAL DEVELOPMENT FINANCING AUTHORITY (MIDFA)
Private Activity Revenue Bonds: MIFFA bonds come in two forms, a Taxable Bond or Tax Exempt Bond. The first type provides access to long-term capital markets for primarily fixed asset financing. The second type 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 energy projects. Additional limitations apply to each specific transaction type.
Credit Insurance Program: This fund provides three types of insurance.
The first, the Conventional Program, insures up to 80%, not to exceed $2.5 million of transactions made by a financial institution. Export transactions may be insured up to 90%.
The second type, Credit Insurance, which is provided through a bond program, insures bonds up to 100%, not to exceed $7.5 million of taxable or tax-exempt bonds.
A third type is associated with 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 these programs contact Wyatt Shiflett, Capital Region and Southern Maryland, at (410) 767-4779.
MARYLAND SMALL BUSINESS DEVELOPMENT FINANCING AUTHORITY (MSBDFA)
MSBDFA provides financing for small businesses that are not able to qualify for financing from private lending institutions or are owned by socially and economically disadvantaged persons.
Contract Financing Program: This program provides 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 or public utilities.
Equity Participation Investment Program: This program provides 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: This program provides loan guarantees and interest rate subsidies.
Surety Bonding Program: This 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 these programs contact Stan Tucker, Department of Business and Economic Development at (410) 333-4270.
MARYLAND DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (DHCD)
Job Creation Tax Credit: This program provides income tax credits to businesses that create new jobs to encourage them to expand or relocate in Maryland. To be eligible for these tax credits, a business must expand in or relocate to “Priority Funding Area” district and create a minimum of 25 new positions.
In most cases, the credit is 2.5% of annual wages for all newly created, full-time jobs, subject to a limit of $1,000 per new job. In DHCD designated neighborhoods, the credit is increased to 5% of annual wages (with a limit of $1,500 per new job) for all newly created full-time jobs. The total credit earned by a qualified business entity may not exceed $1 million per credit year.
If the credit is more than the tax liability, the unused credit may be carried forward for up to five years following the credit year. The credit may be recaptured if the business experiences job losses.
Capital Access Program: As a credit enhancement program, Capital Access helps small businesses secure private financing. The funding for this program comes from private lenders who have established a loss reserve fund from fees paid by lenders, borrowers and the Maryland Department of Housing and Community Development (DHCD). The proceeds of the fees are used to insure loans made to small businesses. Enrolled amounts may range from $10,000 to $1,000,000.
Neighborhood Business Works: The Neighborhood Business Works Program provides flexible gap financing in the form of below-market interest rate loans to small businesses and nonprofit organizations. Financing ranges from $25,000 to $500,000 for up to 50 percent of a project’s total cost.
For more information about these programs contact Michael Haloskey, Business Lending Programs Director at (410) 514-7237 or email@example.com.