$198 million is going to small businesses in Maryland through the State Small Business Credit Initiative

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MARYLAND – Maryland will distribute up to $198 million in federal assistance to small businesses through the state’s Small Business Credit Initiative.

The state is one of five companies approved to receive this relief funding. The funds will be used to administer 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 bolster existing business loan programs and support businesses with limited growth opportunities. Maryland projects that 70% of new loans from the SSBCI-funded program will be made to minority-owned businesses and 40% to women-owned businesses.

“This sector of our business community has been impacted more than any other by the pandemic because these entrepreneurs and small businesses were just getting started, just before the pandemic hit, and trying to get a foothold in poor communities. undeserved,” said 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 to high-growth businesses located in low-income communities. qualified, anchoring companies in these communities. through federal tax incentives that force them to stay in low-income communities for several years.

Chambers said it’s important for small businesses in undeserved communities to succeed because it will help the entire business community as a whole. He hopes the state will analyze what the companies have seen happen to their growth in a year, after receiving the loans.

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