Small Businesses in Baltimore: Technical and Financial Assistance. A resource guide from Downtown Partnership of Baltimore

Transcription

1 Small Businesses in Baltimore: Technical and Financial Assistance A resource guide from Downtown Partnership of Baltimore

2 Table of Contents Financial Resources Grants and Loans 1 Small Business Friendly Banks 1 BaltimoreMICRO 1 Façade Improvement Grants 1 InvestMaryland 2 Maryland Capital Access Program 2 Maryland Linked Deposit Fund 2 Maryland Small Business Development Financing Authority 3 Neighborhood BusinessWorks 3 Propel Baltimore Fund 4 SBA s Loan Programs 4 State Small Business Credit Initiative 4 Financial Resources Tax Credits 5 Arts and Entertainment District Tax Incentives 5 Enterprise Zones 5, 6 Neighborhood Partnership Program 6 Property Tax Credit for Historic Restorations 6 Work Opportunity Tax Credit 7 Technical Assistance and Resources 8 Baltimore Development Corporation 9 Baltimore Main Streets 9 Downtown Partnership of Baltimore 8 Emerging Technology Centers 9 Employ Baltimore 9 Fusion Partnerships 9 Maryland Department of Business and Economic Development 9 Maryland Small Business and Technology Development Center 9 TEDCO 10 Mayor s Office of Minority and Women-Owned Business Development 10 SCORE 10 Small Business Administration 11 Small Business Resource Center 11 Women Entrepreneurs of Baltimore, Inc 11 Business Associations 12 Baltimore City Chamber of Commerce 12 Baltimore Hispanic Chamber of Commerce 12 Korean-American Grocer s Association 12 Market Center Merchants Association 12

3 I. Financial Resources Grants and Loans A. Small Business Friendly Banks: For a complete list of Small Business Administration lenders in Maryland, please visit this website. B. BaltimoreMICRO: BaltimoreMICRO is a micro-loan program run by the Baltimore Development Corporation and the Small Business Resource Center. Loans are available between $5,000 and $30,000 to support small businesses with building improvements, purchase of/acquisition of machinery, equipment, furniture, fixtures and other costs associated with opening or expanding a small business. Eligible businesses must have a credit score of 650 or higher, and cannot exceed $1 million in annual revenue. Businesses are required to meet with the Small Business Resource Center to determine eligibility before application. For more information, please visit the website. Or contact: Paul Taylor Director Small Business Resource Center 1101 E. 33 rd Street, Suite C307 Baltimore, MD (443) ptaylor@sbrcbaltimore.com C. Façade Improvement Grant (FIG), Baltimore Development Corporation (BDC): The FIG program offers up to $3,000 in matching grants and in certain cases, free design assistance to merchants and property owners in designated commercial revitalization districts in order to improve the appearance of their storefronts. For more information, please visit the website. Or contact: William Beckford Managing Director of Commercial Revitalization Baltimore Development Corporation 36 S. Charles Street, Suite 1600 (410) wbeckford@baltimoredevelopment.com D. Façade Improvement Program (FIP), Downtown Partnership of Baltimore (DPOB): The FIP program offers up to $50,000 in grant reimbursement for storefront improvements on commercial buildings located in the Westside of Downtown Baltimore. For more information, please visit the website. Or contact: Kate Dailey Manager of Economic Development and Business Outreach Downtown Partnership of Baltimore 217 N. Charles Street (410) Façade@dpob.org 1

4 E. InvestMaryland: InvestMaryland is an investment fund for early, mid and late stage growth companies. Companies eligible for funding must focus in software, IT, cybersecurity, communications, life sciences or green technology. The business must be located in Maryland and have fewer than 250 employees. For more information, please visit the website. Or contact: Frank Dickson Program Director, Maryland Venture Fund Department of Business and Economic Development 401 E. Pratt Street (410) F. Maryland Capital Access Program: The Maryland Capital Access Program is a loan fund that supports the growth and success of small businesses in Priority Funding Areas. The program has an established loan loss reserve that private lenders can access to award loans to small businesses that would otherwise not be approved. Loans range from $10,000 to $1 million. To learn more, please visit the website. Or contact: Michael Haloskey Director, Business Lending Programs Department of Housing and Community Development 100 Community Place Crownsville, MD (410) Haloskey@mdhousing.org G. Maryland Linked Deposit Fund: The Maryland Linked Deposit Program is designed to stimulate opportunities for certified Minority Business Enterprises (MBEs) by reducing the interest rate on loans they obtain from participating banks. Certified MBEs in the state of Maryland that notify the Maryland Department of Housing and Community Development prior to obtaining qualifying loans from enrolled financial institutions will be able to receive a 2% discount on their loans. The Linked Deposit Program will reduce the cost of capital for minority business enterprises and aid their growth and expansion. For more information, please visit the website. Or contact: Michael Haloskey Director, Business Lending Programs Maryland Department of Housing and Community Development 100 Community Place Crownsville, MD (410) Haloskey@mdhousing.org 2

5 H. Maryland Small Business Development Financing Authority (MSBDFA): MSBDFA is a state program that provides loans to economically and socially disadvantaged entrepreneurs and small businesses that are unable to access a loan from a private lender. For more information, please visit the website. Or contact: Greg Cole Director of Finance Programs Department of Business and Economic Development 401 E. Pratt Street (410) gcole@choosemaryland.org I. Neighborhood BusinessWorks: The Neighborhood BusinessWorks loan program provides gap financing up to $500,000 or 50% of total project costs, whichever is less. Maryland-based small businesses, local development corporations and nonprofit organizations whose activities contribute to a broader revitalization effort in a Sustainable Community are eligible to apply. For more information, please visit the website. Or contact: Michael Haloskey Director, Business Lending Programs Department of Housing and Community Development 100 Community Place Crownsville, MD (410) Haloskey@mdhousing.org J. Propel Baltimore Fund: The Propel Baltimore Fund, a TEDCO program, is available to certain technology companies in Baltimore City. The fund provides up to $220,000 in angel investment to early stage technology companies located in Baltimore City. For more information, please visit the program s website. Or contact: Randy Domolky Director, Angel Funds TEDCO 5565 Sterrett Place, Suite 214 Columbia MD (410) rdomolky@tedco.md 3

6 K. Small Business Administration s (SBA) Loan Programs: The SBA has three major loan programs that may be useful for small businesses. The first is the 7(a) Loan Program. The 7(a) Loan Program is the SBA s primary loan program to help start-up and existing small businesses obtain financing when they might not be eligible for business loans through normal lending channels. The SBA itself does not make loans, but rather guarantees a portion of loans made and administered by commercial lending institutions. For more information on this program, please visit the website. The second useful SBA program is the CDC/504 Loan Program. This program provides approved small businesses with long-term, fixed-rate financing used to acquire fixed assets for expansion or modernization. 504 loans are made available through Certified Development Companies (CDCs), SBA s community based partners for providing 504 loans. For more information, please visit the website. The third SBA loan program useful to small businesses is the Microloan Program. This program provides small, short-term loans to small businesses through specially designated intermediary lenders. Lenders then make loans to eligible borrowers. The maximum loan amount is $50,000, but the average microloan is about $13,000. For more information, please visit the website. To contact the SBA directly, please see the contact information below: Small Business Administration Baltimore Office 10 S. Howard Street (410) L. State Small Business Credit Initiative: Maryland will receive $23 million between 2012 and 2014 to help finance small businesses and manufacturers that are creditworthy, but unable to obtain loans from private lenders. Retail businesses, including franchises, manufacturing businesses, residential developers and service-related businesses are eligible to apply. For more information, please visit the website. Or contact: Greg Cole Director of Finance Programs Department of Business and Economic Development 401 E. Pratt Street (410) gcole@choosemaryland.org 4

7 II. Financial Resources Tax Credits For a comprehensive list of tax credits in Maryland, please see the Guide to Maryland Business Tax Credits. For summaries on some of the most relevant tax credits for small businesses, please see below. A. Arts and Entertainment District Tax Incentives: Certain areas of Baltimore City have special Arts and Entertainment District designations, including portions of the Station North, Highlandtown, and Westside neighborhoods. Additional information on those boundaries is available here. In these areas, artists, businesses and individuals living and working within the designated boundaries have the opportunity to take advantage of several place-based tax incentives. These credits include: 1) Property tax credits for new construction or renovation of certain buildings that create live-work space for artists and/or space for arts and entertainment enterprises; 2) An income tax subtraction modification for income derived from artistic work sold by qualifying residing artists; 3) An exemption from the admissions and amusement tax levied by an arts and entertainment enterprise or qualifying residing artist in a district. For more information, please visit the website. Or contact: Krista D. Green Cultural Affairs Assistant Director Baltimore Office of Promotions and the Arts 10 E. Baltimore Street, 10th Floor (410) kgreen@promotionandarts.org B. Enterprise Zone Income Tax Credit: Most of the City of Baltimore, including most of Downtown, is designated as an Enterprise Zone. These zones are outlined on the Enterprise Zone map available here. Businesses are eligible for the Enterprise Zone Income Tax Credit if they hire at least one new employee in an Enterprise Zone. The Income Tax Credit is generally a one-time $1,000 credit per new worker, hired on a full time basis and earning a living wage. Additional benefits are available for businesses hiring economically disadvantaged employees, or for businesses within special Enterprise Zone focus areas. For more information, please visit the website. Or contact: Todd Dolbin Director, Foreign Trade Zone #74/Enterprise Zone Baltimore Development Corporation 36 S. Charles Street, 16th Floor (410) tdolbin@baltimoredevelopment.com 5

8 C. Enterprise Zone Real Property Tax Credit: Most of the City of Baltimore, including the majority of Downtown, is designated as an Enterprise Zone. These zones are outlined on the Enterprise Zone map available here. Landlords and businesses are eligible for Enterprise Zone Real Property Tax Credits if they make a capital investment in a property (constructing, renovating or expanding a property). Commercial, retail and industrial projects are eligible; residential projects are not. The Real Property Tax Credit is a 10-year credit against local property taxes on the value of the portion of real property improvements. The abatement is 80% for years 1-5, and then a 10% annual decline thereafter to 30% in the tenth and final year. Special Enterprise Zone focus areas have additional benefits. For more information, please visit the website. Or contact: Todd Dolbin Director, Foreign Trade Zone #74/Enterprise Zone Baltimore Development Corporation 36 S. Charles Street, 16th Floor (410) tdolbin@baltimoredevelopment.com D. Neighborhood Partnership Program Tax Credit: Businesses that contribute cash or goods to approved projects operated by tax exempt organizations are eligible for a tax credit of up to $125,000 per year. This credit is in addition to any charitable contribution deduction that is allowed for these contributions on both the state and federal income tax returns. The credit may be taken against corporate income tax, personal income tax, insurance premiums tax or public service company franchise tax, but may not be applied to more than one tax type. Sole proprietorships, corporations, pass-through entities, limited liability companies and business trusts may claim the tax credit. To qualify for the credit, a business must donate at least $500 in money or goods to an approved project and document the value of the contribution. For more information, please contact: Maryland Department of Housing and Community Development 100 Community Place Crownsville, MD (410) E. Property Tax Credit for Historic Restorations or Rehabilitations: This tax credit is designed to reward businesses, landlords and homeowners who renovate (whether exterior or interior) historic properties for commercial or individual use. Properties individually included in the Baltimore City Landmark list and the National Register of Historic Places, as well as properties located within local districts and national districts are eligible for this tax credit. The program is a 10 year comprehensive tax credit program granted on the increased assessment directly resulting from qualifying improvements. Projects with construction costs of less than $3.5 million are credited for 100% of tax increment for 10 years. Projects with construction costs of more than $3.5 million are credited for 80% of tax increment for first five taxable years, then by a decline of ten percentage points for the next five years. For additional information, please visit the website. Or contact: Stacy Montgomery Commission for Historical and Architectural Preservation 417 E. Fayette Street, 8th Floor Baltimore, Maryland (410) stacy.montgomery@baltimorecity.gov 6

9 F. Work Opportunity Tax Credit: The Work Opportunity Tax Credit is a one-time federal tax credit available to employers who hire new employees from a qualified population of low-income groups, including workers with disabilities. The credit is up to 40% of the first $6,000 in paid wages ($2,400 per employee) if the individual works a minimum of 180 days or 400 hours; up to 25% of the first $6,000 in paid wages ($1,500 per employee) if the individual works a minimum of 120 hours but less than 400 hours; for qualified summer youth, the credit is 25% of the first $3,000 in first-year wages paid during the 90-day summer working period, allowing a maximum credit of $750. Employers seeking the federal tax credit must first apply for certification with the State Department of Labor, Licensing and Regulation. For more information, please visit the website. Or contact: Belinda Duncan Tax Credit Program Administrator Department of Labor, Licensing and Regulation 1100 N. Eutaw Street, Room 201 (410) bduncan@dllr.state.md.us 7

10 III. Technical Assistance and Resources A. Baltimore Development Corporation: The Baltimore Development Corporation is a quasi-governmental agency and the economic development arm of the City of Baltimore. Baltimore Development Corporation can assist businesses with site selection, navigation of City processes, and with certifications and financial incentives including the BaltimoreMICRO loan program. For more information, please visit the website. Or contact: B. Baltimore Main Streets: Baltimore Development Corporation 36 S. Charles Street, 16th Floor (410) The Baltimore Main Streets program provides customized support to small businesses located in certain Baltimore neighborhoods, including Federal Hill, Fell s Point, and Pigtown. Each of the participating neighborhoods has a Main Street Manager who is tasked with promoting the neighborhood businesses, residents and tourists through various events and promotions. The program also offers façade improvement grants and tailored business assistance to local businesses. For more information on the 10 Baltimore Main Streets, please visit the website. For general information, please contact: Baltimore Development Corporation 36 S. Charles Street, Suite 1600 (410) C. Downtown Partnership of Baltimore (DPOB): The Downtown Partnership is a non-profit corporation that creates a more vibrant community for businesses, property owners, residents, employees, and visitors in Downtown Baltimore. In addition to providing individuals interested in doing business in Downtown Baltimore with the latest data about Downtown demographics and commercial real estate, DPOB also assists small businesses in navigating the zoning and permitting processes, serves as a liaison between the private and public sectors and provides façade improvement grants to eligible properties. The Downtown Partnership hosts community events, promotes businesses throughout the year and offers a number of other helpful constituent services. For general information, please visit DPOB s website. Or contact: Downtown Partnership of Baltimore 217 N. Charles Street (410)

11 D. Emerging Technology Centers (ETC): The Baltimore Development Corporation operates two business incubators in Canton and Johns Hopkins University s Eastern campus. The incubators focus on growing early-stage technology and biotechnology companies in Baltimore. These incubators offer fully wired office space for participating companies at below market rates. The program includes flexible leases, shared basic services and equipment, tech support, and on-site management. For more information, please visit website. Or contact: E. Employ Baltimore: ETC, Canton 2400 Boston Street, 3 rd Floor Baltimore, MD (410) ETC, Johns Hopkins University s Eastern Campus 1101 E. 33rd Street, 3rd Floor Baltimore, MD (443) Employ Baltimore is a professional business service that assists employers in hiring qualified Baltimore City residents. Employers get skilled employees and a host of valuable support services, including outreach and recruitment, rescreening, assessment and testing services to human resources and support. For more information, please visit the website. Or contact: F. Fusion Partnerships: Employ Baltimore 417 E. Fayette Street, 468 (410) Fusion provides fiscal sponsorship and facilitates collaboration for grassroots, community based projects and leaders. For start-up non-profits with a social justice mission that are not yet ready to step out on their own, Fusion Partnerships is a resource that can provide a non-profit umbrella under which an organization can exist without yet receiving their own non-profit designation. Fusion also provides technical support to their umbrella companies including accounting and legal help. For more information, please visit the website. Or contact: Fusion Partnerships 1600 Guilford Avenue, 2 South (410) G. Maryland Department of Business and Economic Development (DBED): DBED is a State agency and its function is to bring new businesses and jobs to the State of Maryland through innovative economic development initiatives. The Department provides the following key programs and services: business information and economic analysis, site location services for relocations and expansions, tax credits, training grants, finance and training programs, and consulting services. For more information, please visit the website. Or contact: Department of Business and Economic Development 401 E. Pratt Street (410)

12 H. Maryland Small Business and Technology Development Center (SBTDC): The SBTDC is a partnership between the U.S. Small Business Administration, the State of Maryland and the University of Maryland College Park. The Center offers free consulting services to small businesses as well as business development trainings and access to the Center s resource libraries, which include books, video tapes, magazines and useful websites. For more information, please visit the website. Or contact: SBTDC 1420 N. Charles Street Baltimore, Maryland (877) I. Maryland Technology Development Corporation (TEDCO): TEDCO is an independent entity established by the Maryland General Assembly to facilitate the transfer and commercialization of technology from Maryland s research universities and federal labs into the marketplace and to assist in the creation and growth of technology-based businesses in all regions of the State. TEDCO operates multiple funding programs, and gives direct and indirect funding assistance to technology businesses. For current funding opportunities, please visit TEDCO s funding opportunities website or contact: TEDCO 565 Sterrett Place, Suite 214 Columbia, MD (410) J. Mayor s Office of Minority and Women-Owned Business Development (MWBD): The mission of the MWBD is to improve the success rate of minority and women-owned companies seeking to do business with the City of Baltimore by expanding contracting opportunities and increasing the procurement dollars spent with minority and women-owned businesses. The office also facilitates Baltimore City s Minority Business Enterprise (MBE) and Women s Business Enterprise (WBE) certification process. For more information, please visit the website. Or contact: Minority and Women-Owned Business Development City Hall, Room N. Holliday Street (410) K. Services Corps of Retired Executives (SCORE): SCORE is a 13,000-member volunteer association sponsored by the U.S. Small Business Administration. The association matches volunteer business management counselors with clients in need of expert advice. SCORE has experts in virtually every area of business management and maintains a national skills roster to help identify the best counselor for a particular client. Through in-depth counseling and training, SCORE volunteers help prospective and established small business owners and managers identify problems, determine the cause and find solutions. For more information, please visit the website. Or contact: SCORE 1101 E. 33rd Street, Suite 307 Baltimore, MD (410)

13 L. Small Business Administration (SBA) Baltimore District Office: The SBA s Baltimore District Office offers information on small business loans, grants, bonds and other financial assistance. For information on the SBA s loan programs, see page 4. The Office also administers the Historically Underutilized Business Zones (HUBZone) program. This program provides federal contracting opportunities for qualified small businesses located in distressed areas. For more information, please visit the HUBZone Certification website. In addition, the SBA provides a list of SBA bank lenders in Maryland. Please see complete list here. For additional information, please visit the website. Or contact: SBA 10 S. Howard Street Baltimore, Maryland (410) M. Small Business Resource Center: The Small Business Resource Center is a library and information center with access to books, magazines, videos and internet-based sources on a variety of business topics, including starting a business, preparing a business plan, getting credit, business taxes and regulatory responsibilities, networking, and procuring local, state, and federal contracts. The Center hosts a variety of seminars, programs, and workshops on topics relevant to small businesses, most of which are free to attend. For more information, please visit the website. Or contact: Small Business Resource Center 1101 E. 33rd Street, Suite C307 Baltimore, MD (443) N. Women Entrepreneurs of Baltimore, Inc. (WEB): WEB is a non-profit organization that provides women and men with entrepreneurial training, technical assistance, and follow-up services for micro-business start-up and development in the Baltimore-metropolitan area. For additional information, please visit the website. Or contact: WEB 1118 Light Street, Suite 101 Baltimore, MD (410) info@webinc.org 11

14 IV. Business Associations A. Baltimore City Chamber of Commerce: The mission of the Baltimore City Chamber of Commerce is to promote business interaction among its members, to provide information and resources for its members, and to advocate the adoption of a pro-business agenda by the City of Baltimore and the region on behalf of its members. For more information, please visit the Chamber s website or contact: Baltimore City Chamber of Commerce 312 N. Martin Luther King Jr. Boulevard (410) B. Baltimore Hispanic Chamber of Commerce (BHCC): The mission of the BHCC is to promote Hispanic owned businesses by hosting industry specific events, workshops and lectures where local businessmen and women can connect and collaborate. For more information, please visit the website. Or contact: BHCC 841 Fort Avenue (#207) Baltimore, MD (410) bmorehispanicchamber@gmail.com C. Korean-American Grocers Association (KAGRO): KAGRO serves the interests of Korean-American communities and retail businesses such as: supermarkets, liquor stores, convenient stores, restaurants and bars, carry-outs, meat and fish markets, produce stores, and grocery stores. For additional information, please contact: KAGRO 101 W. North Avenue (410) D. Market Center Merchants Association: The purpose of the Market Center Merchants Association is to promote and advance the interests of the businesses in this area. For more information, please visit the website. Or general@ marketcenterbaltimore.org. downtown partnership of baltimore 217 North Charles Street Suite 100 Baltimore, Maryland GoDowntownBaltimore.com GetAroundDowntown.com 12