2.7 Maryland Assistance to Agricultural Business Maryland Agricultural and Resource Based Industry Development Corp (MARBIDCO) 2.7.

Transcription

1 AMarylandEntrepreneur'sGuide AconciseguidetofederalandMarylandfinancingandsupportprogramsfor emergingcompanies ContributedbytheMarylandStateBarAssociation Contents: 1PRIVATEFINANCINGPROGRAMS 1.1Introduction 1.1.1Early StatePrivateEquity 1.2AccessingEarly StagePrivateEquity 1.2.1ActiveAngelGroups 1.2.2Mid AtlanticVentureAssociation("MAVA") Programs 1.2.3SpringboardEnterprises 2MARYLANDFINANCINGPROGRAMS 2.1MarylandSmallBusinessDevelopmentFinancingAuthority(MSBDFA) 2.1.1ContractFinancingProgram(CFP) 2.1.2GuarantyProgram(GP) 2.1.3EquityParticipatingInvestmentProgram(EPIP) 2.1.4SuretyBondProgram(SBP) 2.2MarylandIndustrialDevelopmentFinancingAuthority(MIDFA) 2.2.1MIDFAFinancialAssistanceundertheConventionalProgram 2.2.2EligibilityCriteria 2.2.3ApplicationProcess 2.2.4SpecialConditions 2.2.5UseofProceeds 2.2.6InterestRates 2.2.7TermoftheLoanGuaranty 2.3MarylandIndustrialPartnerships(MIPs) 2.3.1EligibilityCriteria 2.3.2Funding 2.3.3ApplicationProcess 2.4DepartmentofBusiness&EconomicDevelopmentInvestmentPrograms 2.4.1ChallengeInvestmentProgram 2.4.2EnterpriseInvestmentFundProgram 2.4.3Applications 2.5CountyandLocalSupport 2.5.1BaltimoreCity BaltimoreDevelopmentCorporation(BDC) 2.5.2AnneArundelCounty EconomicDevelopmentCorporation 2.5.3BaltimoreCounty DepartmentofEconomicDevelopment 2.5.4CarrollCountyDepartmentofEconomicDevelopment 2.5.5CecilCounty OfficeofEconomicDevelopment 2.5.6HarfordCounty OfficeofEconomicDevelopment 2.5.7HowardCounty EconomicDevelopmentAuthority 2.6OtherCountyEconomicDevelopmentOffices

2 2.7MarylandAssistancetoAgriculturalBusiness 2.7.1MarylandAgriculturalandResource BasedIndustryDevelopmentCorp (MARBIDCO) 2.7.2OtherMarylandAgricultureAssistance 3FEDERALFINANCINGPROGRAMS 3.1U.S.SmallBusinessAdministration(SBA)GuarantyandLoanPrograms 3.1.1SBAGenerally 3.1.2SBALoanPrograms: Basic7(a)LoanProgram (m)LoanProgramorMicroLoanProgram CDC504LoanProgram 3.2SmallBusinessInnovationResearchProgram(SBIR) 3.2.1EligibilityCriteria 3.2.2ParticipatingFederalAgencies 3.2.3SBIRApplicationProcess 3.2.4IntellectualPropertyRights 3.2.5TheSmallBusinessTechnologyTransferProgram(STTR) EligibilityforForProfitEntities EligibilityforNonprofitResearchInstitutions ListofParticipatingAgencies ApplicationProcess. 3.3SmallBusinessInvestmentCompany(SBIC) 3.4CooperativeResearchandDevelopmentAgreements(CRADAs) 3.4.1Purpose 3.4.2Participation 3.4.3Agreement 3.4.4Proposals&Information 3.5SmallBusinessConcern 3.6SmallDisadvantagedBusinessConcern(SDB)&8(a)ProgramSmall DisadvantagedBusinessConcerns 3.6.1Eligibility 3.6.2Benefits 3.7VeteranOwnedSmallBusinessConcern&ServiceDisabledVeteranOwned SmallBusinessConcerns 3.8Woman OwnedSmallBusinessConcerns(WOSB) 3.8.1Eligibility 3.8.2Benefits 4INCUBATORS 4.1UniversityIncubators 4.1.1TechnologyAdvancementProgramatUniversityofMarylandCollege Park(TAP) 4.1.2IncubatorandAccelerator UniversityofMarylandBaltimoreCounty (UMBCTechCenter) 4.2Non UniversityIncubators ChesapeakeInnovationCenter 4.2.2EmergingTechnologyCenter(ETC)

3 4.2.3FrederickInnovativeTechnologyCenter,Inc.(FITCI) 4.2.4GarrettInformationEnterpriseCenter 4.2.5GermantownInnovationCenter 4.2.6HagerstownCommunityCollege'sTechnicalInnovationCenter (WashingtonCounty sbusinessincubatorathagerstowncommunitycollege) 4.2.7HigherEducationandAppliedTechnologyCenter 4.2.8NeotechIncubator 4.2.9PrinceGeorge scounty TechnologyAssistanceCenter RockvilleInnovationCenter(RIC) ShadyGroveInnovationCenter SilverSpringInnovationCenter(SSIC) TawesScience/TechnologyIncubator TowsonGlobal WheatonBusinessCenter(WBIC) 4.3IncubationAssociations 4.3.1TheMarylandBusinessIncubationAssociation(MBIA) 4.3.2TheNationalBusinessIncubationAssociation(NBIA) 5BUSINESSENTERPRISEPROGRAMS. 5.1MarylandMinorityBusinessEnterpriseProgram 5.1.1EligibilityCriteria 5.1.2MBEApplicationProcess 5.2AnneArundelCountyMinorityBusinessEnterpriseProgram 5.3BaltimoreCityMinorityBusinessEnterpriseProgram 5.3.1EligibilityCriteria 5.3.2MBEApplicationProcess 5.4BaltimoreCountyMinorityBusinessEnterpriseProgram 5.4.1EligibilityCriteria 5.5HowardCountyMinorityBusinessEnterpriseProgram 5.6MontgomeryCountyMinorityBusinessOutreachProgram 5.7PrinceGeorge scountyminoritybusinessenterpriseprogram 5.7.1EligibilityCriteria 5.7.2ApplicationProcess 5.8OtherLocalBusinessEnterpriseProgramsandResources 6OPPORTUNITIESFORBUSINESSGROWTH 6.1LocalChambersofCommerce 6.1.1MarylandChambersofCommerce(MCC) 6.1.2OtherlocalChambersofCommerce 6.2MarylandTechnologyDevelopmentCorporation(TEDCO) 6.2.1General 6.2.2Programs FundingOpportunities BusinessAssistance FederalLabOpportunities BusinessIncubation 6.3TheGreaterBaltimoreTechnologyCouncil 6.4TechCouncilOfMaryland

4 6.5SmallBusinessResourceCenters 6.6MarylandSmallBusinessDevelopmentCenters(MDSBDCs) 6.6.1Counseling 6.6.2Training 6.6.3Financing 6.7WomenOnlyActivateProgram 6.7.1ActivateProgram 6.7.2NationalAssociationofWomenBusinessOwners 6.8BusinessSchools 6.9SpeakerSeries 7TAXCREDITINCENTIVEPROGRAMS 7.1EnterpriseZones 7.2EmpowermentZones(federal) 7.3OneMarylandEconomicDevelopmentRealPropertyTaxCredit 7.4JobCreationTaxCredit 7.5ResearchandDevelopmentTaxCredits 7.6BioHeatingOilTaxCredit 7.7BiotechnologyInvestmentIncentiveTaxCredit 7.8BusinessesthatCreateNewJobsCredit 7.9CellulosicEthanolTechnologyResearchandDevelopmentTaxCredit 7.10CleanEnergyIncentiveTaxCredit 7.11CommuterTaxCredit 7.12CommunityInvestmentTaxCredit 7.13Employer ProvidedLong termcareinsurancecredit 7.14EmploymentOpportunityTaxCredit 7.15GreenBuildingTaxCredit 7.16HeritageStructureRehabilitationTaxCredit 7.17Long termemploymentofex FelonsTaxCredit 7.18MarylandDisabilityEmploymentTaxCredit 7.19Maryland MinedCoalTaxCredit 7.20TelecommunicationsPropertyTaxCredit 7.21WaterQualityImprovementTaxCredit [edit]privatefinancingprograms [edit]introduction [edit]early StatePrivateEquity Thereareseveraltypesofearly stageprivateequityavailableforbusiness entrepreneurs.otherthanyourpersonalfunds,therearethefollowingsources: (1)Angelsarewealthyindividualswhoinvestintheearly stageofstart up companies.thebenefitofusingangelsforearly stagefinancingisthatitisless complicatedandgenerallyrequireslessexpensethanventurecapitalfinancing. However,therearedownsidestousingangels.Oftentheseindividualscanonly provideaone timeinvestment,whichmayrequireagreaternumberofinvestorsto providealloftheneededfinancingandcreateanadministrativeburden.also,many

5 timesangelsarenotsophisticatedinvestorsandmayhaveunrealisticexpectations regardingthereturnontheinvestment.whenfinancingisobtainedfromangelsitis importantfortheentrepreneurtoensurethattheangelisan accreditedinvestor undersecuritieslaws. (2)Venturecapitalisafundofpooledinvestmentsthatismanagedbyaventure capitalist.itgenerallybecomesinvolvedintheearlystageofacompanywiththe intentofgrowingthebusiness,whereareturnonitsinvestmentwillberealized throughaneventualipoortradesale.thebenefitsofventurecapitalarethatthe fundsgenerallyhaveenoughresourcestoprovidemuchofthecompany sneeded financing,andmanyventurecapitalistscanalsoprovideassistancewithgeneral businessissues,includingformulatingabusinessstrategy,recruiting,andproviding introductionsintothebusinesscommunity.however,thedownsideofusingventure capitalisthatitrequiressharedequity,andmanyventurecapitalistsinsistonalso sharingcontrolofthecompany(usuallythroughrepresentationontheboardof directors).thisfinancingisgenerallynotavailabletosmallerstart upcompanies,as theventurecapitalfundsgenerallydesiretomakeinvestmentsupwardsof $500,000to$1,000,000.() AccessingEarly StagePrivateEquity ActiveAngelGroups Anactiveangelgroupconsistsofhighnet worthindividualswhojointogetherto investcollectivelyinentrepreneurialfirms.theactiveangelgroupmeetsregularly (oftenmonthly)toreviewbusinessproposals.oftenentrepreneursareaskedto makepresentationstothemembershipofthegroup.iftheactiveangelgroup decidestomakeaninvestmentinastart upbusiness,theangelsworktogetherto conduct"duediligence"tovalidatethebusinessplan,statementsandhistoryofthe entrepreneurialteam. Themembersofactiveangelgroupstendtobeformerentrepreneursthemselves andareattemptingtomakeareturnontheirinvestment,butoftenarealsotryingto giveback totheircommunitiesbyspurringeconomicgrowth,whichleadsactive angelgroupstowanttoinvestlocallyasopposedtonationally. Someactiveangelgroupsaremorelikelytoinvestinfirmsthatarerecommended bypeopletheytrust;therefore,itisimportantforentrepreneurstonetworkinthe localcommunitytogainareferral.examplesofpeopletocontactinclude: entrepreneurswhoarebackedbyangels,attorneyswhospecializeinequity investmentsinstart upbusinesses,accountantsandbusinesscounselors.

6 ProcessActiveangelgroupsconductseveralstagesofreviewbeforemakingfunding decisions.whilenotwogroupsofactiveangelsarealike,belowisagenerallistof stagesofreview: 1.Application/BusinessPlanAngelgroupwebsiteswillcontaininformation regardingtheprocesstocompletetheirapplication,whichoftenrequires submissiontheentrepreneur sbusinessplan. 2.Pre ScreeningOnceanapplicationhasbeencompletedorabusinessplanhas beensubmitted,theangelgroupwillreviewittodetermineifthepotential investmentopportunitymeetstheangelgroup sgeneralrequirementsand investmentpreferences. 3.ScreeningIfanapplicationisacceptedforfurtherreview,theentrepreneurwill oftenbeaskedtomeetwithasubsetoftheactiveangelgrouptoallowthegroupto furtherunderstandthenatureofthepotentialinvestment,receivemoreinformation regardingthebusinessplan,andanswertheangels'questions. 4.InvestmentMeetingIftheangelsinattendanceattheScreeningstageshow interestintheentrepreneur'sbusiness,theentrepreneurwillbeinvitedtopresent infrontofameetingtheentireactiveangelgroup.thepresentationwillbefollowed byaquestionandanswersession.thesetypesofinvestmentmeetingsareusually heldonamonthlybasis. 5.DueDiligenceIftheentireangelgroupshowsinterestinthebusiness,aperiodof duediligencewillbegin.thisduediligencewillbeconductedbythoseangelsand specialistswithknowledgeofthespecificindustryunderconsideration.thedue diligencewillbeathoroughreviewoftheentrepreneur sbusinessplanand businessincludingthemanagementteam,marketingopportunities,asitevisit, customercalls,andfinanciallyanalysis.thisprocesscantakeanywherefromafew weekstoafewmonths. 6.TermSheetIftheangelgroupdecidestoinvestintheentrepreneur,atermsheet fortheinvestmentwillbenegotiated.thistermsheetwillguidethelawyersin preparinginvestmentagreementsandwilldeterminetherelationshipbetweenthe angelgroupandtheentrepreneur. Examples: AngelCapitalAssociation:Associationofangelgroupsthatprovidesinformation andeducationforentrepreneursonangelinvesting. NewVantageGroup:AngelgroupfocusingonMid Atlanticregion. KaufmannFoundation:Providesadvocacyandeducationforentrepreneurs.

7 Mid AtlanticVentureAssociation("MAVA") MAVAisanorganizationdesignedto"facilitateprivateequityinvestinginthemid Atlanticregionandrepresentthecollectiveinterestsofventurecapitalistswith investmentinterestsinthemid Atlantic."Itiscomprisedofover500venturecapital professionalsfromover125venturecapitalfirms,whocollectivelymanagecapital totalingover$100billion. Programs 1.ALPHAConnectisaprogramdesignedtobringtogetherinvestorswithpromising technologiesindevelopmentatuniversities,federallaboratoriesandothernonprofits.theprogramhostsavarietyofeventsthroughouttheyear,includingthe AnnualMid AtlanticInnovationShowcaseandMAVAALPHAConnectLuncheon. 2.CapitalConnectionisanannualeventdesignedtobringtogetherinvestorswith technologycompanies.thiseventfeaturesstart up,early stageandexpansion stage companiesaswellaslater stateprivategrowthcompanies. 3.TheMid AtlanticBioisanannualconferenceforthebioscienceindustrythat attractsnationalandinternationalindustryleaders.biotechindustryleaders presenttheirtechnologies,givinginvestorstheabilitytolearnmoreaboutthese advances. 4.OntheLinksGolf:thisannualgolftournamentbringstogetherventurecapitalists withmavamembersforadayofnetworkingonthegreen. 5.YoungInvestmentProfessionalsbeganinthe1990sandisdesignedtoprovide opportunitiestoyoungventurecapitaliststhroughnetworking,enhanceddealflow, buildingofco investmentrelationships,andeducation.theprogramhostsavariety ofnetworkingeventsthroughouttheyear,aswellassponsoringcommunity outreachandprofessionaldevelopmentprojects.theprogramhasover160 membersfrom86venturecapitalfirms. Formoreinformationaboutthisprogramorbecomingamember,call ore SpringboardEnterprises SpringboardEnterprisesisanorganizationdesignedtofosterwomenbusiness entrepreneursbysupportingemergingcompaniesledbywomen.itdescribesitself asa"go toorganization"toobtaininformationandsupportforwomen led emergingcompanies.thissupportisintendedtoaccelerateaccesstoequity

8 marketsforwomen ledcompaniesbyofferingworkshopsandseminars, membershipprograms,education,coaching,connectionswithinvestors,forums, andaweb basedlearningcenter. Programs: 1.VentureForumsaredesignedtofeaturewomen ledemergingbusinessesinfront ofventurecapitalists.2.educationalprogramsareofferedtoprovideinformation regardingtheequitymarketsandbuildinganewcompany.3.thelearningcenteris anonlinesitedesignedtoprovidewomenentrepreneurswitha"virtualbootcamp" regardingtheequityraisingprocess.thesitecontainsresourcesdesignedtohelp womenbetterunderstandtheprocessofobtainingfinancingforemerging companies.thesitecontainstutorialsonfundamentalsoftheequitymarket, creatingapitch,preparingabusinessplan,andothertools,resourcesandvideos. SpringboardEnterprises:Fosterswomenbusinessentrepreneurs. MARYLANDFINANCINGPROGRAMS ThestateofMarylandhas,amongothers,thefollowingstatesponsoredfinancing programsforentrepreneurstopossiblyaccess: [edit]marylandsmallbusinessdevelopmentfinancingauthority(msbdfa) MSBDFAisanagencyoftheMarylandDepartmentofEconomicandBusiness Development(DBED)Website thatparticipateaswell,suchasmeridianmanagementgroup,inc.themsbdfa programoffersthefollowingfourfinancialassistanceprograms: ContractFinancingProgram(CFP) a.eligibilitycriteria Atleastfifty onepercentofthecompanymustbeownedbysociallyoreconomically disadvantagedpersons,whicharedefinedaspersons,who:(1)aremember(s)ofa grouphistoricallydeprivedofaccesstonormalfinancialresources;(2)havean identifiablephysicalhandicapwhichlimitstheirabilitytoobtainfinancing;and(3) areotherwiseimpededfromobtainingfinancingbecauseofsocialoreconomic factors.sinceinceptionin1978throughjune30,2008,276transactionswere settledfortotalof$40.6million,themajorityofwhichwerethroughdirectloans. b.permitteduseofproceeds

9 FundsobtainedthroughtheCFPmaybeusedeitherforworkingcapitaltocomplete anexistinggovernmentorpublicutilitycontractortoacquireequipmentof machinerytocompletesuchcontract.fundingmayalsobeapprovedpending receiptofsuchacontract,althoughdraw downoffundswillnotbepermitteduntil thecontracthasbeenawarded. c.msbdfafinancialassistanceunderthecfp (1)DirectLoans (a)msbdfamaylenddirectlyupto$2,000,000. (b)themaximuminterestrateapplicabletosuchloansisafloatingprimerateplus twopercent,butnottoexceedfifteenpercent. (c)thetermofmsbdfadirectloansisthelongerofeitheroneyearorthetermof thecontract. (2)LoanGuarantees MSBDFAwillguarantyuptoninetypercentofthecommercialloan(providedthat theguaranteedamountmaynotexceed($2,000,000). (a)themaximuminterestrateforaguaranteedloanisafloatingprimerateplus twopercent. (b)thetermofthemsbdfaguarantyisthelongerofoneyearorthetermofthe contract. GuarantyProgram(GP) a.eligibilitycriteria (1)Atleastseventypercentofthecompanymustbeownedbysociallyand economicallydisadvantagedpersonsorhandicappedpersons. (2)Preferably,theprincipalwillhavehadatleasteighteenconsecutivemonthsof experienceinthetradeorbusinessforwhichitisseekingmsbdfafinancial assistance.

10 b.useofproceeds FundsobtainedthroughtheGPcanbeusedforworkingcapitalpurposes,toacquire orinstallequipmentandmachinery,leaseholdimprovements,andacquisitionof realestateorcorporatestockortherefinanceofdebt.performance AsofJune30, 2008,279financingswereguaranteedundertheCFPtotaling$51.9millionsince theprogrambeganin1984.(notlimitedsolelytogovernmentcontractsorutility agreements.) c.msbdfafinancialassistanceunderthegpforloansbetween$5,000and $2,000,000 (1)LoanGuarantees (a)msbdfamayguarantyuptoeightypercentofaqualifyingcompany s commercialloan(providedthatmsbdfa sexposuredoesnotexceed$2,000,000). (b)themaximuminterestrateforaguaranteedloanistheprimerateplustwo percent. (c)themaximumtermforaguaranteedloanistenyears. (2)InterestRateSubsidies (a)msbdfacanalsosubsidizefourpercentagepointsoftheinterestratebeing chargedbythefinancialinstitution. (b)subsidyissubjecttoannualreview. (c)termsofrepaymentofsubsidyarenegotiateddirectlywithborrower. (d)ispayablequarterly. EquityParticipatingInvestmentProgram(EPIP) EPIPisintendedtoenhancebusinessownershipthroughuseofloan,loan guaranteesorequityinvestment.epiphasthefollowingfourcomponentsand associatedrequirements(sinceinceptionin1987throughjune30,2008,this programhasprovided83loansorequityinvestmentsofapproximately$14.0 million.intheearlydaysoftheprogram,amajorityoftheparticipantswere franchisebusinesses.withinthelasttenyears,thefocusoftheprogramisto

11 providemoreassistancetotechnologybasedbusinessesandtomoretraditional industrysectors.): (1)EPIPFranchiseComponent (a)eligibilitycriteria (i)thecompanymustbeafranchise. (ii)atleastseventypercentofthecompanymustbeownedbysociallyand economicallydisadvantagedpersonsorhandicappedpersons. (iii)thelesserofatleasttenpercentofthecompany scapitalcontributionsmust havebeenmadebyitsowneror$250,000. (b)permitteduseofproceeds FundsobtainedthroughtheEPIPcanbeusedtofinancepurchasesofrealproperty, equipmentorexistingfranchises;forleaseholdimprovements;topayfranchiseand trainingfees;forworkingcapitalpurposesorexpandexistingsmallbusiness. (c)msbdfapurchasesofsecurities (i)msbdfaprovidesfinancialassistancetofranchiseesorfranchisorsunderthe EPIPbypurchasingtheirdebtorequitysecurities.MSBDFApurchasesoffranchisee securitiesmaynotexceedthelesserorforty fivepercentofitsinitialprojectcostor $1,000,000.MSBDFA sinvestmentsarestructuredsothattheyarerecaptured withinsevenyears. (ii)independentbusinessappraisalmayberequired. (2)EPIPBusinessAcquisitionComponent (a)eligibilitycriteria (i)atleastfifty onepercentofthecompanymustbeownedbysociallyand economicallydisadvantagedpersonsorhandicappedpersons. (ii)thebusinessbeingacquiredmustbeatleastfiveyearsoldandmusthavebeen profitabletwoofthelastthreeyears.

12 (iii)ifacquiringabusiness,theprincipalsoftheenterpriseapplyingmusthavean equityinvestmentequaltofivepercenttotalacquisitioncostand3yearsormoreof success. (b)permitteduseofproceeds (i)purchaseofmachinery,equipment,furniture,fixtures,inventoryorrealestate; leaseholdimprovements;workingcapital; (ii)construction/renovation;orpurchaseofexistingprofitablebusiness. (c)financialassistanceterms (i)equityinvestmentsorloansupto25percentofinitialprojectcostor$2,000,000, whicheverisless. (ii)investmentshavealoandurationofnotmorethansevenyears.loansare typicallyrepaidwithinthe4thto7thyear. (iii)theownermustcontributeatleast$25,000or5percentofthecompany stotal capitalcontributions,whicheverisgreater. (3)TechnologyInvestment (a)eligibilitycriteria (i)thecompanymustbeatechnology basedbusinesswithaproventechnological productorservice. (ii)atleastseventypercentofthecompanymustbeownedbysociallyand economicallydisadvantagedpersonsorhandicappedpersons. (b)permitteduseofproceeds Companiescanusetheproceedstopurchaseofmachinery,equipment,furniture, fixtures,inventoryorrealestate;leaseholdimprovements;workingcapital; construction/renovation,toacquireexistingprofitablebusinessortodevelopa technologybasedbusiness.

13 (c)financialassistantterms (i)msbdfa sequityinvestmentinatechnology basedbusinessmaynotexceed $2,000,000. (ii)investmentdurationofnomorethantenyears. (4)OtherSmallBusiness Samecriteriaasbusinessacquisitionsbutlimitedforpurposesofstartingor expandingabusinessentity. SuretyBondProgram(SBP) a.eligibilitycriteria (1)Thecompanymustbea smallbusiness. A smallbusiness isgenerallydefined asonethat: (a)employsfewerthanfiftypersonsonafull timebasis; OR (b)haslessthan$10,000,000ingrossannualsales;and (c)isindependentlyowned;and (d)cannotsubcontractmorethan75%dollarvalueofcontract. b.msbdfafinancialassistanceundersbp (SpecialNote:UntilSeptember30,2009:Guarantyis90%percentupto$1,350,000 andbondsarelimitedto$1,000,000eachduetocashlimitations,theexpectations arethesbpprogramwouldlaterincreasesuchlimitationsinaccordancewiththe belowtotheextenttherearefundsavailabletodoso) (1)BondGuaranty (2)UntilSeptember30,2009,theSmallBusinessSuretyBondFundisusedin guarantyrepaymentofuptoninetypercentofasurety slossesonbid,paymentor performancebonds(ofupto$5million)issuedtoqualifyingbusinessescontracting withagovernmentagency(state,federalorlocal)orapublicutility.

14 (3)Premiumsandfeesaredeterminedattimeofapplication,however,thebond premiumsaretypicallyintherangeof2%to3%. (4)Theguaranteemaynotexceedthetermofthecontractandapplicablewarranty periodforlatentdefects. (5)Canestablishasuretybondrevolvinglinetodirectlyissueorguarantymultiple bondstoaprinciplewithinpre approvedterms,conditionsandlimitations. c.performance (1)AsofJune30,3008,84projectssupportedwithbondsissueddirectlyor guaranteedbymsbdfaforatotalofapproximately$38.9million.only3claims totalinglessthan$300,000havebeenpaid. (2)HouseBill169,whichpassedin2006,increasedmaximumamountof$5million, buttheprogramexpectstobeabletoincreaseto$2millioninfutureyearsasfunds arepermitted. (3)Bonds (a)msbdfamayissueandperformbid,performanceandpaymentbondsasa suretyforbusinessescontractingwithagovernmentagencyorpublicutility. (b)suchbondsmaynotexceed$5,000,000.(seenote fundsinprogramlimitto$2 million) (c)thebondsmaynotexceedthetermofthecontractandapplicablewarranty periodforlatentdefects. MarylandIndustrialDevelopmentFinancingAuthority(MIDFA) MIDFAisprogrammanagedbyDBED.Thewebsiteis MIDFAinsuresrepaymentofaspecifiedpercentageofprincipalandinterestof loansmadetoqualifyingmarylandbusinessesbycommerciallenders.themaryland GeneralAssemblyestablishedMIDFAtohelpalleviateconditionsofunemployment inmarylandandtopromotethedevelopmentofabalancedstateeconomythrough financialassistancetobothnewandexistingindustryandcommerce.inadditionto themidfa ConventionalProgram thatwillbediscussedhere,midfaadministers atax ExemptBondProgram,aTaxableBondProgram,aSeafood&Aquaculture LoanFund,aLinkedDepositProgramandsupportstheMarylandEnergyFinancing Administration.TheFundispermitteda5:1leverageratio.

15 Fundcharges1/8of1%annualissuancefeewithrespecttotaxableortax exempt bondstocertainmanufacturing,501(c)(3)non profitentitiesandcertainsolid wasterecoveryprojects.otherbondsmayhaveanissuancefeeof½of1%for insuredtransactions,unlesssuchfeeiswaivedinaqualifieddistressed One Maryland jurisdiction. AsofJune30,2008,theprogramhadparticipatedin818loanstotalingmorethan $2,103,193, Asofsuchdate,61loanswereactivewithprincipalbalancesof approximately$465,790,000insuringobligationsof$24,685,883. MIDFAFinancialAssistanceundertheConventionalProgram MIDFAmayinsure(i)uptothelesserofeightpercentoftheprincipalandinterest ofaqualifyingcompany scommercialloanor$2.5million;(ii)uptothelesserof 100percentofabond financedtransactionor$7.5million;and(iii)uptothelesser of90percentoftheprincipalandinterestofaloanforexport relatedtransactions or$2.5million.thetypicalprojectrangeis$35,000to$5million;thetypicalmidfa insuranceisinthe30 40%range. MIDFAalsomayinsurethebusiness paymentofotherborrowingcostssuchas insurancepremiumsandotherfees. MIDFAworksdirectlywiththebusiness commerciallendertodeterminethat amountforwhichthelenderrequiresthirdpartyparticipation.ultimatelythescope ofmidfa sguarantyisdeterminedbythelender sneedsandthecollateraloffered assecurityfortheloan. ThenormalmaturityforloansinsuredbyMIDFAis15 20yearsonrealestate,7 10 yearsonequipment,andoneyearorlessforworkingcapital. EligibilityCriteria Theoretically,allMarylandbusinessesareeligibleforMIDFAassistance.Inpractice, howevermidfagenerallygivesfinancialassistanceonlyto501(c)(3)organizations, certainmanufacturingfacilitiesandcertainsolidwasteprojects.retailbusinesses areexcluded,unlessspecificallyapprovedbytheauthority.additionallimitations applytospecifictransactiontype. Generallyspeaking,MIDFAexpectsapplicantstogenerateemploymentinMaryland. Whileinsurancedollarexposureandjobsguidelinesareused,eachfinancing requestisanalyzedonitsownmeritsandintermsofitsowncharacteristics. Thecompanymustbecreditworthy.Ingeneral,MIDFAconsidersthedegreeof successassociatedwiththecompany spastoperationsaswellasitsprospective

16 abilitytocreatejobs,generatetaxrevenue,serviceitsdebt,andmeettheneedsof thecommunityinwhichitislocated. ApplicationProcess (a)anindicationthatthecredithasbeenapprovedbythelender; (b)annualfinancialstatements,withaccompanyingnotes,foratleasteachofthe precedingthreeyears,includingbalancesheets,profitandlossstatements, statementsofsourcesandusesoffunds,reconciliationsofsurplusandstatementsof changesinfinancialpositioncoveringsuchperiod; (c)financialprojectionsforthesucceedingthreeyears,includingprojectedcash flowstatements,projectedprofitandlossstatementsandproformabalancesheets reflectingthenewdebtandanyproposedleaseobligations; (d)afacilitycostschecklistreflectingtheestimatedamountofthefinancing,ifany, tobeusedtoconstructfacilitiesforthebusiness; (e)evidenceoftheage,normalusefullifeandcostormarketvalueofanymachinery orequipmenttobefinancedwiththeproceedsoftheguaranteedloan;and (f)personalfinancialstatementsoftheindividualapplicant(s)andpersonal guarantor(s). SpecialConditions MIDFAmayrequiretheapplicanttouseitsbesteffortstomaintainacertain job creationlevel. (MIDFAisfundamentallycommittedtorelievingconditionsof unemploymentinmaryland.) UseofProceeds FundsobtainedbythebusinessfromanMIDFA insuredloanmaybeusedtofinance purchasesoffixedassets(e.g.,realproperty,machinery,equipment,etc.)aswellas topaycertainsoftcostsandforworkingcapitalpurposes. InterestRates Theapplicabletypeandrateofinterestwillvarydependinguponthelender s needs.

17 TermoftheLoanGuaranty ThetermofaMIDFA insuredloanwillvarydependinguponthebusiness expected useoftheproceedsfromtheloan. Forexample,loansobtainedtopurchaserealpropertygenerallywillbeinsuredfor atermoffromfifteentotwentyyears;loansobtainedtopurchaseequipmentor machinerygenerallywillbeinsuredforatermoffromseventotenyears;loans obtainedforworkingcapitalpurposesgenerallywillbeinsuredonlyforatermof oneyear. MarylandIndustrialPartnerships(MIPs) TheMIPsprogramisacollaborationbetweenqualifyingMarylandcompaniesand the13institutionsintheuniversitysystemofmarylandforresearchtodevelop commercialproductsandprocesses. MIPsprovideamatchingservice,knownastheMarylandTechnologyEnterprise Institute(MTECH),tohelpapplicantcompaniesfindappropriateresearchfaculty withintheuniversitysystemofmaryland.projectsarepreparedjointlybythe companyandtheuniversityresearcher. TheMIPsprogrammatchesthecompanycontributiontotheresearchprojectupto $90,000ayearforstart upcompaniesandupto$100,000peryearforother companies.mipsfundingdoesnotgototheparticipatingcompanybutisapplied directlytotheresearch. MIPsandMTECHstaffareavailableforconsultationinwritinganapplication. FormoreinformationseeMarylandIndustrialPartnerships(MIPs)Program Website EligibilityCriteria a.thecompanymustbeamarylandbusiness,meaningthatithasamanufacturing, servicesorresearchanddevelopmentoperationsinmarylandoritmustbe planningtosetupsuchoperationsinthestatewithintheyearinwhichthemips awardistobereceived.applicantsmaybeasinglecompany,agroupofcompanies ornon profitorganization. b.eachproposalmustbeco authoredbytheapplicantcompanyandafaculty memberfromtheuniversitysysteminmarylandwhowillbeinvolvedinthe project.

18 c.theproposalsmustaddressinnovativetechnologicalorscientificconcepts.these typicallyfallwithintheareasofengineering,computerscience,physicalsciencesor lifesciences. Funding a.matchingrequirementsforeachprojectarebasedonabudgetconsistingofboth thecompanyandthemipscontributions,withcompaniesbeingexpectedtomake anadditionalin kindcontributionthatincludesthesalaries,materialsand equipmentandothercompany budgetedexpensesforthework. (i)forlargecompanies,definedasfirmshavingmorethan1,000employees,the minimumcashandin kindcontributionsare50%and25%oftheprojectbudget. (ii)formediumcompanies,definedasfirmshaving100to1,000employees,the minimumcashandin kindcontributionsare50%and25%oftheprojectbudget. (iii)forsmallcompanies,definedasfirmshavefewerthan100employees,the minimumcashandin kindcontributionsare35%and30%oftheprojectbudget. (iv)forstart upcompanies definedasprivatelyheldfirmsinaproductdevelopmentmodethathavebeeninbusinessfouryearsorlessandhaveannual salesof$1millionorless theminimumcashandin kindcontributionsare10% and35%oftheprojectbudget.asanalternativetocashandin kindcontributions, anequitycontributionispossibleforastart upcompany. b.one year(one phase)andtwo year(two phase)projectsareeligible.in exceptionalcasesathirdyearorphasemaybeconsidered.ifatwo yearprojectis selected,thestatusisreviewedattheendofthefirstyear.ifsatisfactory,thesecond yearoftheprojectwillproceed. c.eachapplicationisreviewedfirstbymipsstaff,thenbyexpertsintheapplicable subjectarea,thenbybusinessexperts,finallybyanevaluationboard.criteria includethelikelihoodof:(i)successfromthetechnicalstandpoint;(ii)jobcreation inmaryland;(iii)improvementofthecompany scompetitiveposition;and(iv)help tothemarylandeconomyinsomeotherway.bonuspointsintheevaluationare awardedtocompaniesthatproposetoexceedtheminimumcashandin kind contributions.otherfactorsintheevaluationincludethelevelofthecompany s commitment,contributiontothegoalsoftheuniversity,andthepossibilityof interactionbetweenthecompanyandtheuniversity,suchasstudentinternships. ApplicationProcess

19 Thescheduleofkeydatesintheapplicationprocess,basedonthecalendaryear 2008isasfollows: a.applicationpacketsavailableaugust1;b.proposalsdueatmipsofficebyoctober 15;c.EvaluationboardselectionscompletedDecember16;d.Executedagreements returnedbymipsbyjanuary16;ande.projectcommencementbyfebruary1. MarylandIndustrialPartnerships(MIPS)Program;UniversityofMarylandMIPS Program DepartmentofBusiness&EconomicDevelopmentInvestmentPrograms TheMarylandVentureFundisaventurecapitalinvestmentfundofthestateof Marylandthatinvestsdirectlyinlifesciencesandtechnologycompaniesand indirectlyinventurecapitalfunds,primarilythroughtwoprograms:thechallenge InvestmentProgramandtheEnterpriseInvestmentFundProgram.Formore informationvisitmarylandventurefund ChallengeInvestmentProgram TheChallengeInvestmentPrograminvestsinemergingcompaniestocoverpartof theinitialcostsofbringingnewproductstomarket.theinitialinvestmentsare $50,000to$100,000,withfurtherincrementalinvestmentsuptoamaximumof $150,000.Theinvestmentsarestructuredasconvertibledebtwitharoyalty payment. Toqualify,abusinessmustmeetthefollowingcriteria: (1)Nomorethan25employees; (2)Annualsalesoflessthan$1million; (3)Minimum1:1co investormatchbyotherinvestors,whichmayincludefamily andfriends; (4)High techcompanywithprincipalplaceofbusinessinmaryland; (5)RemaininMarylandforatleastthreeyears;and (6)Positionedforadditionalventurecapitalinvestment. EnterpriseInvestmentFundProgram

20 TheEnterpriseInvestmentFundPrograminvestsinemergingtechnology companies,typicallyinthefirstroundofinstitutionalfinancing,withthegoalof helpingsuchcompaniesmovetothenextstageofdevelopment.investment amountsrangefrom$150,000to$500,000.theprograminvestmenttakestheform ofanequitypositioninthecompany. Toqualify,businessesmustmeetthefollowingcriteria: a.operateinatechnologyindustry,suchaslifesciences(e.g.therapeutics,medical devicesanddiagnostics)andinformationtechnology(e.g.software,communications anditsecurity); b.maintainprincipalplaceofbusinessinmarylandforatleastfiveyears;and c.minimum3:1matchbyasophisticatedinvestor; Applications ToapplytoeithertheChallengeInvestmentProgramortheEnterpriseInvestment FundProgram,acompanymustmeettheabove describedeligibilitycriteriaas applicableandsubmitabusinessplantothemarylandventurefund.each applicationmustincludethecompanynameandaddress,contactnameand telephonenumberanddetailedbackgroundonthecompany sfounders. CountyandLocalSupport BaltimoreCity BaltimoreDevelopmentCorporation(BDC) BDCisa501(c)(3)corporationcontractedwiththeCityofBaltimoretoprovide economicdevelopmentservicesandtoactasaliaisonbetweenbusinessownersand Cityagencies.Formoreinformationseehttp:// a.bdcloanprograms RevolvingLoan/WorkingCapitalLoanFunds(RLF/WCand MILA/RLF) Availabletofor profitbusinessesandmaybeusedforacquisitionandimprovement ofland,facilitiesandequipment(includingrenovation,demolition,siteprepand newconstruction).thefundsmayalsobeusedforworkingcapitalwithrestrictions. Maynotbeusedforrelocationfromasurplusareaorinvestmentactivities. ApplicantswithacurrentoutstandingRLFloan,ortoapplicantswhohavereceived accumulatedassistancefromtherlfof$150,000withinthepreviousfive year periodarenoteligible.otherineligiblebusinessesinclude:financialinstitutions,

21 consultingfirms,realestatecompanies,not for profitbusinesses,developers,or unregulatedmedia. Loanlimitsare$500,000or30 35%ofprojectcosts.ApprovalbyBDC sloan CommitteeandbytheCity sboardofestimatesrequired(andinsomeinstances, approvalbythecity sboardoffinance). b.citygeneralobligationbonds Availabletofor profitbusinessesandsomenon profitsandaregenerallyrestricted toguaranteesandcapitalprojects brickandmortar improvements.refinancing isnotpermitted. Maynotbeusedforrelocationfromasurplusareaorinvestmentactivities. ApplicantswithacurrentoutstandingRLFloanortoapplicantswhohavereceived accumulatedassistancefromtherlfof$150,000withinthepreviousfive year periodarenoteligible.otherineligiblebusinessesinclude:consultingfirms, unregulatedmedia,realestatecompanies,investmentorspeculativeactivities, speculativedevelopers,andretail. EligibleprojectsandloanlimitsaredeterminedbyBDCandmaynotexceed30 35% ofprojectcosts(subjecttoavailabilityoffunds,numberofjobscreated,and industrytype).approvalbybdc sloancommitteeandbythecity sboardof Estimatesrequired(andinsomeinstances,approvalbytheCity sboardoffinance). c.bdcsmallbusinessresourcecenter(sbrc) TheSBRChasalargelibraryandprovidesfreeresourcestoeducateownersin starting,planning,financingandmarketinganewbusiness.forhoursofoperation andadditionalprogram,seewebsite business resource center 0 AnneArundelCounty EconomicDevelopmentCorporation AnneArundelhasanEconomicdevelopmentagencythatprovidesvarious programsforlocalcompanies.seewebsitehttp:// TheAnneArundelCountySmallBusinessResourceCenterprovidesservicesthat arefreeofcharge,confidential,andthataddresstheneedsandchallengesoftoday s businessenvironment.thesbrclibraryisopentothepublicmondaythrough FridayandCounselingservicescanbearrangedbyvisitingtheCenter.Formore information,seehttp:// AnneArundelCountybusinessfinanceofficehasvariousprogramsaswell.See websitehttp://

22 AnneArundelCountyLoanPrograms (1)ArundelBusinessLoanFundisaprogramoftheAnneArundelEconomic DevelopmentCorporation,whichprovidesloanswithamaximumof$300,000to newandexpandingbusinessesoperatinginannearundelcounty.loanproceeds maybeusedforworkingcapital,equipment,furniture,andleasehold improvements.sbalendingregulationsapplysincetheloansinvolvesba guarantees. (2)BusinessCorridorInvestmentLoanProgramhasbeenestablishedtoencourage economicactivityinfourpilotprojectareasinannearundelcountyandthecityof AnnapolisRevitalizationDistricts.TheBCIPoffersqualifiedbusinessownerszero interestloansofupto$35,000forimprovementstotheexteriorandinterioroftheir business.thefourpilotprogramareasinclude:route2corridorinbrooklynpark, theroute2corridorandglenburnietowncenteringlenburnie,thesun Valley/MountainRoadCorridorsinPasadena,andtheWestStreetRevitalization DistrictintheCityofAnnapolis.Eligibleimprovementsinclude: (a)renovationofbuildingexteriors, (b)siteimprovementssuchaslandscaping,signage,orlighting,and (c)interiorimprovementssuchaspainting,flooring,plumbing,orelectricity. BaltimoreCounty DepartmentofEconomicDevelopment BaltimoreCountyhasaDepartmentofEconomicDevelopmentthatprovides variousprogramsforlocalcompanies.formoreinformationsee BaltimoreCountyhasaSmallBusinessResourceCenterthatprovidesvarious servicestolocalcompanies.thebaltimorecountysmallbusinessresourcecenter isoperatedthroughapartnershipbetweenthebaltimorecountydepartmentof EconomicDevelopmentandtheBaltimoreCountyChamberofCommerceandoffers newandexistingbusinessassistancewithtechnical,financialandmarketingissues freeofcharge. Theassistanceincludes:FeasibilityStudies,DemographicStudies,Strategic Planning,BusinessStructuringNeeds,Assessments,BusinessValuations,Market Analysis/Research/Planning,BusinessPlanDevelopment,LoanPackage Assistance,CertificationProcess&Procurement,IntellectualPropertyandFunding

23 BaltimoreCountyhasafinanceofficewhichhelpslocalcompanies.SeeContactfor BaltimoreCountyfinancingprogramsat LoanPrograms (1)BuildingInvestmentLoans provideinterest freeloansforexterior improvementssuchasawnings,landscaping,signs,andparkingforbusinessesin CommercialRevitalizationDistricts.Formoreinformation: html (2)SmallBusinessLoanPartnership Thisfundprovidesrealestateandfixed asset loansthroughapartnershipbetweenbaltimorecountyandthearea'sleading financialinstitutions.formoreinformation: sloadfund.html (3)RevitalizationAdvantage offers¼percentdiscountsoffstandardinterestrates toqualifyingbusinessestorefurbishordeveloppropertyorfinanceequipmentin thecounty's13commercialrevitalizationdistricts.formoreinformation: comrev_advntg.html (4)BusinessGrowthLoans providedirectloansorloanguaranteestonewand expandingindustrialandcommercialbusinesses.maximumloanamountis $250,000.Fundsmaybeusedtofinancetheacquisitionandimprovementofland, buildings,plantandequipmentandincludesnewconstructionorfacilityexpansion. (5)AdvancedTechnologyLoanFundDirectloans,withtheparticipationofother lendingandequitysources,forsmalltechnologyand/ordefenserelatedbusinesses. Maximumloanamountisthelesserof$100,000or50percentoftheproject's eligiblecosts.fundsmaybeusedtofinancetheacquisitionandimprovementof land,buildings,plantandequipment.thisincludesnewconstructionorfacility expansion. (6)TaxExemptBondsTax exemptbondfinancingisavailabletomanufacturersand 501 C3/non profitorganizations.bondproceedsmaybeusedtofinancethe acquisitionandimprovementofland,buildings,plantandequipment,includingnew constructionorfacilityexpansion.financingisavailablefrom$1,000,000toa maximumof$20,000,000.irb'sarealsoavailableforpollutioncontrolandwaste treatmentfacilityconstructionorrelatedequipmentpurchases.

24 CarrollCountyDepartmentofEconomicDevelopment CarrollCountyhasaDepartmentofEconomicDevelopmentthatprovidesservices tolocalcompanies.seehttp:// CarrollCountyhasSmallBusinessDevelopmentCenterProvidesavarietyof managementandtechnicalassistance,confidentialbusinessconsultingservicesand trainingprogramstohelpdevelopandrefinebusinessplans,solveproblems,find sourcesofcapitalanddevelopstrategiestosupportgrowthandprofitability.seefor moreinformationhttp:// CarrollCountyLoanPrograms (1)CarrollCountyDevelopmentCorporation CCDCisasourceofinvestmentand debtfinancingtosupportlocalsmallbusinessandeconomicgrowthinthecarroll Countyarea.ThegoaloftheCCDCistopromote,developandimprovetheeconomic conditionsofthepeopleincarrollcountythroughloans,investmentsandother businesstransactionssupportingsmallbusinesses.formoreinformation,please contacthttp:// (2)IndustrialRevenueBonds CarrollCountycanauthorizetheuseofanIRBto helpfundaparticularproject.taxexemptirb'scanbeofferedtomanufacturingor otherdevelopmentprojectsmeetingeligibilitycriteria.eligibleirbprojectscosts typicallybeginatonemilliondollars.fundscanbeusedforland,machineryand buildingconstruction/renovation.interestratesvaryandtheuseofabondcounsel isnecessary.atnocost,carrollcountywillpreparethelegalresolutionauthorizing theprojectforanirbandfacilitateitspresentationtotheappropriatebody. (3)EconomicDevelopmentTrustFund TheDepartmenthasatrustfundavailable tohelpfundprojectspecificcosts.wheneligible,thedepartmentmayoffergrantsor low interestloansforavarietyofneeds. (d)millerentrepreneurialinstitute themillerentrepreneurialinstituteisaonestopresourceforsmallbusinessesandentrepreneursseekingtraining,peer relationshipsandstate of the arttechnology.theinstituteoffersalargeconference room,computerclassroom,resourcelibraryandtrainingfacilitywithsmart Classroomcapability(laptopguidedoverheadprojectionsystem).TheMiller EntrepreneurialInstituteoffersclassesaspartoftheSmallBusinessTraining NetworkofCarrollCounty.Fourpartnerscomingtogethertoservebusinessneeds MillerEntrepreneurialInstitute,CarrollCountyDepartmentofEconomic Development,SmallBusinessDevelopmentCenter,andStartUpCarrollallprovide adviseandservicestohelpsmallbusinessesgrow.pleasesee

25 CecilCounty OfficeofEconomicDevelopment CecilCountyhasanOfficeofEconomicDevelopmentthatprovidesservices.For moreinformationseehttp:// CecilCounty'sRevolvingLoanFund Providesfundstoqualifiedborrowersforthepurchaseofland,buildingsand equipment,inaccordancewiththeeligibilityrequirementsoftheprogram. IntroductiontoappropriateprogramsoftheSmallBusinessAdministrationcan workinconjunctionwiththelocalrevolvingloanfundforqualifiedborrowers. HarfordCounty OfficeofEconomicDevelopment HarfordCountyhasOfficeofEconomicDevelopmentthatprovidevariousservices tolocalcompanies.formoreinformationsee HarfordCountyhasaSmallBusinessDevelopmentCenterthatprovidesassistance tolocalcompanies.formoreinformationsee LoanPrograms (1)EconomicDevelopmentOpportunityFund Stimulatesincreasedfinancingfor newequipmentandoperationsbycomplementingtraditionallenders,stateor Federalfundingprograms.LocalandFederalFundsusedtoencourageinvestment, retentionandjobcreationforworkingcapital,equipmentpurchases,landor buildingimprovementsandpurchases.maximumloanamountis$100,000. Application: (2)RevolvingLoanFund Providesfundstocreditworthybusinessesunableto obtainfinancingthroughtraditionalsourcesduetolimitedequity,collateralorcash flow.analternativeincentiveprovidedbythecountyandaconsortiumofeight financialinstitutionstoattract,expandandretainsmallbusinesses.1.3millionloan Pool.Availabletofor profitbusinessesincludingmanufacturers,wholesalers, retailers,serviceandagriculturalcompanies.formoreinformation,contact: from$10,000to$100,000. (3)EnterpriseLoanFund PartnershipbetweenM&TBankoffersa1/4%discount offstandardinterestratestoqualifyingbusinessestorefurbishordevelop commercialproperty.programsupportsharfordcounty'scommitmentto

26 revitalizingolderindustrialareasofthecountyandsupportingresidentbusiness retentionandexpansion.availabletobusinesseslocatedalongharfordcounty's Route40Corridor,includingtheEdgewood/JoppaandGreaterAberdeen/Havrede GraceEnterpriseZones.M&TBankloanamountsrangefrom$50,000to$3,000,000. RevitalizationAdvantageloanscanbeleveragedwithotherHarfordCountyLoan Fundstomaximizesavings.Countyloansupto$100,000maybeavailable. (4)CommunityBlockDevelopmentGrantforEconomicDevelopment Fosters developmentintargetedareas.includesfundingfor:waterandsewerlinesto industrialsites,extensionofrailservicetoindustrialsites,constructionand Renovationofnewandexpandingbusinesses. (5)IndustrialRevenueBondsforManufacturersand501(c)(3)Organizations Tax exemptfinancingfortheacquisitionofland,buildings,andequipmentirbbonds aresoldtolendinginstitutions,investorsandthepublicirbpurchaserdetermines fixedorfloatinginterestratefederallawlimitstheterms,amountandusesof financing. HowardCounty EconomicDevelopmentAuthority HowardCountyhasanEconomicDevelopmentAuthoritythatprovidesvarious servicestolocalcompanies.formoreinformationseehttp:// HowardCountyhasBusinessResourceCenterthatone on onecounselinginall aspectsofbusinessmanagement,fromstartup,businessplanningandfinancing,to marketing,networking,andstrategicplanningforbusinessgrowth.business ResourceCenterclientscanfindprofessionalassistanceinareasasvariedas governmentprocurement,certifications,businessplanningandinternationaltrade. Accesstosophisticatedbusinessresources,referencematerials,trainingseminars andworkshopsisalsoavailable.formoreinformationsee followingongoingentrepreneurialsupport: (a)referralstothesmallbusinessnetworkinggroup,whichprovide entrepreneurialsupport. (b)thebusinessfundingadvisoryofficeisstaffedbyprofessionalswhoadvise entrepreneursoffundingopportunitiesavailabletomeettheirneeds. (c)thefranchiseadvisoryofficeoffersadvice,guidance,andseminarsonthe businessaspectsoffranchising. (d)theinternationaltradecenterdevelopsrecognitionandawarenessof internationaltradeopportunitiesforsmallandmediumsizehowardcounty companiesandassiststhemindevelopingandincreasingtheirinternational

27 businessopportunitiesthroughcounseling,workshops,andreferralsto state/federalagencies. (e)thegovernmentcontractinginstitute(gci)offersbusinessestheopportunityto receiveinstructionfromleadersinthegovernmentcontractingmarketontopics suchasgettingregisteredasacontractor,certification,businessdevelopment, marketresearch,proposalwriting,oralpresentations,accountingandlegalissues, projectandcontractmanagementandsecurityclearances. (f)thevirtualofficeisaprogramforsmallandhome basedbusinessesinhoward Countythatprovidesabusinessaddressforreceiptofmail,accesstoconferenceand meetingfacilitiesequippedwithaudio/visualequipment/internetaccessanda businesslibrary. LoanPrograms: (1)EconomicDevelopmentIncentivesFund HowardCountyhascreatedan EconomicDevelopmentlncentiveFundwhichisfundedbyanissuerfeeontax exemptfinancing.moniesfromthisfundareusedasamatchingrequirementto obtainstatefunding. (2)JimRouseEntrepreneurialFund JREFwasestablishedtohelpfosterthe developmentofnewandgrowingbusinessesthrougheducation,mentoringand financing.loansofupto$100,000aremadetosmallorstart upbusinessesfor expansionorstart upcosts. (3)USRoute1andUSRoute40RevitalizationLoanPrograms TheRoute1and Route40loanprogramswereestablishedtoencouragebusinessestoimprove buildingandsiteconditionsalongbothcorridors.theprogramsofferatorbelow primeratefinancingthroughparticipatingbanks. CenterforBusinessandTechnologyDevelopment FoundedinMay,2000,is dedicatedtothediscovery,stimulation,nurturing,growthandsuccessof entrepreneurshipinhowardcounty.thecenterforbusinessandtechnologyhas gainedareputationforcreatinginnovativeprogramstofosterentrepreneurshipin thegreaterwashington/baltimoreregion.formoreinformationsee j ref j refisaprivate,not for profitorganizationdedicatedtofosteringthe entrepreneurialspiritinhowardcounty,maryland.j refisasmallbusiness financierthatassistssmallandemergingbusinesseslocatedinhowardcounty.it providesfinancingandotherneededformsofmanagementandeducation

28 assistancetomaximizebusinessgrowth.formoreinformationsee refprovidesthefollowing services: (a)businessservices: (i)businessloansupto$250,000. (ii)businessadvicetomeetthespecificneedsoftheentrepreneur. (iii)businessandstrategicplanreviewandbusinesseducation (b)realestateloansprogram: (i)businessandrealestatemustbelocatedinhowardcounty (ii)loansupto$250,000 (iii)noprepaymentpenalty (iv)floatingrates (v)75%ormoreowneroccupied (vi)cashdownpaymentaslowas5% OtherCountyEconomicDevelopmentOffices AlleganyCountyEconomicDevelopment formoreinformationsee CalvertCountyDepartmentofEconomicDevelopmentformoreinformationsee CarolineEconomicDevelopmentCorporationformoreinformationsee CecilCountyOfficeofEconomicDevelopmentformoreinformationsee CharlesCountyEconomicDevelopmentDepartmentformoreinformationsee DorchesterCountyEconomicDevelopmentOfficeformoreinformationsee

29 FrederickCountyOfficeofEconomicDevelopmentformoreinformationsee GarrettCountyEconomicDevelopmentDepartmentformoreinformationsee KentCountyEconomicDevelopmentOfficeformoreinformationsee MontgomeryCountyDepartmentofEconomicDevelopmentformoreinformation see PrinceGeorge scountyeconomicdevelopmentcorporationformoreinformation seehttp:// QueenAnne scountydepartmentofeconomicdevelopmentandagriculturefor moreinformationsee SomersetCountyEconomicDevelopmentCommissionformoreinformationsee St.Mary scountydepartmentofeconomicandcommunitydevelopmentformore informationseehttp:// marys.md.us/decd/. TalbotCountyOfficeofEconomicDevelopmentformoreinformationsee Hagerstown WashingtonCountyEconomicDevelopmentCommissionformore informationseehttp:// Salisbury WicomicoEconomicDevelopment,Inc.formoreinformationsee WorcesterCountyDepartmentofEconomicDevelopmentformoreinformationsee MarylandAssistancetoAgriculturalBusiness MarylandAgriculturalandResource BasedIndustryDevelopmentCorp (MARBIDCO) MARBIDCOisaMarylandstatesponsoreddevelopmententityformedforthe purposeofdeliveringenhancedfinancingopportunitiestotheagriculture,forestry