Gov. Larry Hogan – Official Website of the Governor of Maryland

Maryland was the first state to present its state plan for a small business credit initiative to the US Treasury Department
Three government agencies will include funds to expand existing business lending and investment programs

ANAPOLIS, Ph.D.– Gov. Larry Hogan announced today that the state of Maryland will deploy up to $ 198 million in federal support for small businesses through the State Small Business Credit Initiative (SSBCI). Maryland was the first state in the nation to present its SSBCI deployment plan to the United States Department of the Treasury, and today was one of the first five states to be approved.

“Through a series of aid programs, our efforts to keep Maryland” open to business “during the pandemic have protected jobs and enabled one of the strongest and most sustainable recoveries in the nation,” said Governor Hogan. “We have one of the most aggressive plans in the country to bring these resources out, using our very successful lending and investment programs to help our small businesses, especially those in underserved communities ready to revitalize.

Originally created by Congress in 2010 to lend and invest to small, underserved businesses, SSBCI received a $ 10 billion allocation as part of the U.S. Rescue Plan Act. SSBCI funding will be administered by three government agencies, including the Maryland Department of Housing and Community Development (DHCD), the Maryland Department of Commerce, and the Maryland Technology Development Corporation (TEDCO). SSBCI funds will be used to expand existing business lending programs to support companies with limited growth potential, whether due to a pandemic or historic divestment. Maryland’s SSBCI initiatives will target communities and areas with a high concentration of small, micro, social and disadvantaged economies (SEDIs) to support ongoing public investment in underserved communities.

DHCD will receive up to $ 103 million and pay through the Neighborhood BusinessWorks program. The program provides funding to new and expanding small businesses that have an impact and operate within the designated Maryland Opportunity Zones, Priority Funding Zones and Sustainable Community Investment Zones and Community Development Finance Institutions (CDFIs), often through partnerships with local and national CDFIs.

“Neighborhood BusinessWorks has long been our department’s flagship business lending program with infrastructure, processes and partnerships that have provided more than $ 70 million in business capital under Governor Hogan,” said DHCD Secretary Kenneth K. 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 Authority (MSBDFA) program. Established in 1978 to promote the viability and expansion of socially and economically vulnerable individual enterprises, the MSBDFA is now available to small enterprises that are unable to obtain adequate business financing 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 companies, as well as numerous business associations, chambers of commerce and local professionals. .

“For more than 40 years, the 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,” said Maryland Secretary of Commerce Mike Gill. “These funds will provide the much-needed lifeline for many small businesses and help our country continue its economic recovery.

TEDCO will receive up to $ 50 million and will allocate funds to four existing programs aimed at technology-based companies and entrepreneurs in Maryland. Three programs – the Venture Capital Fund, the Venture Capital Limited Company and the Seeds Funds Equity Program – focus mainly on venture capital and start-up funding. Fourth, the Social Impact Fund provides investment and support to entrepreneurs who demonstrate economic or social disadvantage. Through these four programs, TEDCO will continue to liaise with high-level technology companies, entrepreneurs and investors in the country, while collaborating with universities, regional business accelerators and incubators, and other organizations.

“We want to express our gratitude to our DHCD friends for their leadership to bring us to this point,” said TEDCO Executive Director Troy Lemayl-Stoval. “And this point is about investing in individuals and communities that are underrepresented in our innovation ecosystem, while creating additional funding for TEDCO to invest in companies that will start and expand in Maryland – generating fairer future.

The state of Maryland expects to begin deploying SSBCI resources through these programs in the summer of 2022. Business owners and credit institutions wishing to apply for funding must visit open.maryland.gov/ssbci to submit an expression form of interest to be notified when funds become available.

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