The purpose of the Neighborhood BusinessWorks (NBW) program is to provide subordinate gap financing to small businesses that cannot otherwise gain access to sufficient and affordable private capital – and current difficult economic conditions. Small businesses with talented entrepreneurs and worthy business plans are, more than ever, having difficulty in accessing affordable and sufficient financing capital. NBW investments are needed now more than ever to help family–owned businesses contribute to the recovery of local economies through new jobs and services.
Since its inception in 1995, the program had made over $58 million in loans to 240 small businesses and $19 million in grants to 245 nonprofits. As a result of these investments, the Neighborhood BusinessWorks has also assisted in creating 3,300 jobs. In addition to creating and sustaining jobs, these investments have revitalized communities and stimulated additional investment by private lenders.
The Microenterprise Loan Program (MLP) expands opportunities for microenterprise development, creating new opportunities for small business development and sustainability in Maryland communities statewide. MLP is designed to provide flexible financing for microenterprise start-ups and expansions within designated Sustainable Communities throughout the State
The MLP program is new this year and seeks to provide microloan qualified borrowers with access to capital not traditionally available in the private sector. Microloan borrowers under this program will also have the added benefit of receiving technical assistance to provide best practices leading to the success of the business.
The Maryland Capital Access Program (MCAP) is part of the revitalization initiative to support the growth and success of small businesses and non-profits in Priority Funding Areas throughout the State of Maryland. MCAP is a credit enhancement program that enables private lenders to establish a loan loss reserve fund from fees paid by lenders, borrowers and the State of Maryland. Communities that have small businesses receiving financing through loans enrolled in MCAP will benefit from new or expanded services provided by the small businesses.
Since its inception in 2001, MCAP has assisted 272 businesses with credit enhancements of $670,000, leveraging $36.5 million in private sector loans. MCAP has also assisted in the creation of 1,380 jobs.
The Maryland Linked Deposit Program (LDP) is a new, statewide initiative designed to stimulate opportunities for certified Minority Business Enterprises (MBEs) by reducing the interest rate on loans they obtain from participating banks. This Program leverages $50 million of State funds to reduce the cost of capital for certified Minority Business Enterprises. Certified MBEs that notify the Maryland Department of Housing and Community Development via web application prior to obtaining qualifying loans from enrolled financial institutions may be able to receive a 2% discount on their loans once the loan is approved. The Linked Deposit Program (LDP) looks to stimulate economic opportunities, enabling a qualified minority business enterprise access to affordable capital in order to grow and expand their business.
Launched in January 2009, the Linked Deposit program has enrolled $4.2 million in loans and has assisted in creating 59 jobs and sustained 135 jobs.
Launching Spring 2011, the Main Street Improvement Program: Be SMART Better Buildings program is designed to improve the energy efficiency of the places we work, play and live not only save energy, save money and save resources, but strengthen the sustainability of Maryland’s cities and towns. As part of the Be SMART: Saving Maryland’s Resources for Tomorrow energy efficient program, DHCD is offering low-interest loans to small business owners and commercial property owners to realize substantial, immediate, and ongoing cost savings through energy efficient retrofit improvements.
