MARYLAND- Maryland will distribute up to $ 198 million in federal small business relief through the State Small Business Credit Initiative.
The state is one out of five businesses approved to receive this relief funding. The funds will be used to operate 8 loan and equity investment programs through several Maryland agencies including the Maryland Department of Housing and Community Development, the Maryland Department of Commerce, and the Maryland Technology Economic Development Corporation. The money will strengthen existing business lending programs and support businesses with limited opportunities for growth. Maryland anticipates 70% of new loans in the SSBCI-funded program will be provided to minority-owned businesses and 40% to women-owned businesses.
“That sector of our business community has been hurt more than any other with the pandemic because of those entrepreneurs and small businesses were just getting going, right before the pandemic hit, and trying to establish footholds in undeserved poor communities,” Bill Chambers, President of the Salisbury Area Chamber of Commerce said.
Maryland will also use $ 17 million to fund the Neighborhood Business Works Venture Debt Program, which will expand access to capital for undeserved communities by lending alongside venture capital equity in high-growth businesses located in qualified low-income communities, anchoring businesses in these communities. through federal tax incentives that require them to remain in low-income communities for several years.
Chambers said it’s important that small businesses in undeserved communities do well because that will help the whole business community as a whole. He hopes the state will analyze what businesses have seen happen to their growth a year from now, after receiving the loans.