5263 Bucktown Road - Cambridge, MD 21613
410-228-0155 - joy@dorchesterfirst.com
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Dorchester Economic Development 5263 Bucktown Road - Cambridge, MD 21613 410-228-0155 - joy@dorchesterfirst.com |
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Money, Money, Money...
A business can be financed by the owner, commercial institutions, or through assistance programs provided by federal, state and local funding sources. Dorchester County has locally owned banks, as well as branches of regional and national banks. Dorchester First! can also assist you in locating and applying for funds available through government resources. Find out which of these most commonly used programs, including loans, grants, and tax credits may apply to your small business: Local Loan Programs Tax Credits State of Maryland Loan Programs Tax Credits Grants Federal Loans Tax Credits Grants Private Sources Grants You may also obtain specialized assistance with these programs by contacting Dorchester First! or the local SBDC representative who can help determine your eligibility and can assist you in the application process. Dorchester First! will assist you with whichever route you choose. LOCAL Loan Programs Dorchester First! Revolving Loan Program… Borrow up to $20,000 for financing small business start-up or expansion. Visit these links for the forms you need to fill out for this program: Main Street "Community Legacy" Revolving Loan Fund... For owners or renters of commercial property within the Main Street district of Cambridge, you may qualify to borrow up to $50,000 for interior or exterior renovations, at half of prime interest rate. Contact the City of Cambridge, Kathy Foster, at 410-228-1211, or visit City office at 307 Gay Street, Cambridge; or contact Main Street Director, Liddy Garcia-Bunuel at 410-228-0020. You can also use "Contact us" option at this Website to obtain information on this program. Maryland Capital Enterprises (MCE)... Certified U.S. Department of the Treasury "Community Development Financial Institution." MCE provides loans up to $35,000, as well as educational and technical assistance to entrepreneurs in economically distressed communities. Contact them at 1-866-MaryCap, or visit their website www.marylandcapital.org Tax Credits Dorchester County - Tax abatement on Personal Property Tax (machinery and equipment in return for job creation or business expansion by addition of new machinery. Contact County Council for application. 410-228-1700. Cambridge - Property tax abatement for businesses locating or expanding in the Enterprise Zone. Contact Maryland Department of Business & Economic Development - Rural Region. Artists located in the Arts & Entertainment District in the City of Cambridge may apply for certain tax credit benefits, namely abatement/exemption from the Admissions and Amusement Tax, income tax subtraction, and real property tax credit. Contact Dorchester First! for additional information. Grants Mid-Shore Community Foundation Nathan Foundation Waddell Foundation LOAN PROGRAMS - STATE OF MARYLAND For more information and assistance in applying for these programs, contact the Regional Development Representative for the Maryland Department of Business and Economic Development, Mindie Burgoyne at 410-822-2830 or mburgoyne@choosemaryland.org Maryland Economic Development Assistance Authority and Fund (MEDAAF) Provides a combination of below market financing opportunities to specific industry sectors locating or expanding in a priority funding area. Special Purpose Loans are available under this program for Day Care Center Programs. Challenge Investment Program provides capital investments for small start-up high technology companies to cover a portion of the initial costs associated with bringing a new product to market. Investment decisions are based on a project's potential return, the promotion of economic development and creation of jobs. Enterprise Investment Program provides direct equity investments in emerging high technology companies with patented or proprietary products or manufacturing processes and a marketing strategy in place. A second step to the Challenge Investment Program. Maryland Small Business Development Financing Authority (MSBDFA) provides funding incentives that promote the viability and expansion of small businesses owned by socially or economically disadvantaged persons and to retain or increase the employment of socially or economically disadvantaged persons. Includes Equity Participation Investment for business acquisition or operation of a technology based business by socially or economically disadvantaged entrepreneurs. Maryland Heritage Area Authority provides loans for local jurisdictions, governments and noon-profits to assist and encourage preservation and economic development of recognized or certified areas. Group Home Financing Program provides loans to non-profit organizations and individuals to acquire and modify group homes for low-income elderly, disabled and other people with special housing needs. (DHCD) Maryland Affordable Housing Trust - Funds to develop, enhance and preserve affordable housing for those earning less than 50% of median income. Business Opportunity Small Business Reserve Program requires State agencies to reserve 10% of their contracting dollars for bid solely by small businesses. Click here to visit the website for Governor's Office of Minority Affairs. GRANTS - STATE OF MARYLAND Capital Historic Preservation Grant - Maryland Heritage Areas Authority grant for business, non-profits and local jurisdictions for preserving historic resources. May be used for acquisition, rehabilitation or restoration projects. Partnership for Workforce Quality provides matching grants and support services for skill upgrade training to improve the competitive position of a business. Export Grant program provides financial assistance up to $5,000, plus technical expertise to businesses with Maryland based operations interested in pursuing new international marketing initiatives. DNR Pump-out Grant Program for public and private marinas for reimbursement for purchase and installation of marine sewage pumpout facilities. Funding is also available for operations and maintenance. TAX CREDIT PROGRAMS – STATE OF MARYLAND For more information or assistance, contact Local office of Maryland Comptroller in Salisbury. Telephone 410-543-6800 or see website www.marylandtaxes.com Arts & Entertainment District - Artists who create and sell their art within the district (Downtown Cambridge Main Street Area) may qualify for State Income Tax credits. Additionally, Property owners who renovate a building for arts or entertainment purposes may qualify for tax incentives. Contact Dorchester First! for more information. One Maryland Economic Development Tax Credit for businesses that establish or expand a business facility in a priority funding area. Clean Energy Incentive Tax Credit for businesses that purchase and install solar water heating and photovoltaic property or use waste materials to produce electricity. Commuter Tax Credit for businesses that provide commuter benefits by paying a portion of an employee's travel, vanpool, or guaranteed ride home. Job Creation Tax Credit for new or expanding businesses that create at least 10 to 25 full time permanent new positions and which have been granted a property tax credit by a local Maryland government. Enterprise Zone Tax Credit for businesses locating within the Enterprise zone a property tax credit for 10 years against local property taxes on a portion of real property improvements; and a tax credit based on wages paid to qualified employees. Employment Tax Opportuity Tax Credit for businesses that hire an individual who has previously received Aid to Families with Dependent Children or Family Investment Program entitlements. Credit is for wages, childcare and transportation. Green Building Tax Credit for businesses that rehabilitate or construct a building with at least 20,000 sq. ft. of interior space that is used primarily for non-residential purposes, or a multi family unit with at least 12 dwelling units. Heritage Preservation Tax Credit/Mortgage Credit for Heritage structures which are either owner-occupied, or income producing property, and which incur substantial expenditures in a 24 month period for historic restoration. Maryland Disability Employment Tax Credit for businesses that hire persons with disabilities, including a veteran released from the armed forces for a service-related disability. Credit is for wages paid, childcare and transportation costs. Community Investment Tax Credit for businesses that contribute cash or goods to approved projects operated by tax-exempt organizations. Work-based Learning Program Credit for businesses that hire students as part of an approved work-based learning program. Must be approved by the Marylalnd State Department of Education. FEDERAL FUNDING Local contact for information on the following programs is available at the Maryland Small Business Development Center at Chesapeake College in Wye Mills by calling 1-888-852-6712, or email to rloeffler@chesapeake.edu. Loans 7(a) Loan Guaranty Program - is the primary loan program for the Small Business Administration (SBA). By guaranteeing major portions of loans made to small businesses, the SBA enables the lenders to provide financing to small businesses when funding is otherwise unavailable on reasonable terms. The SBA can guaranty as much as 85% on loans up to $150,000; and 75% on loans of more than $150,000, with a maximum of $1 million. Rural Business Investment Program to promote economic development and job creation in a rural area. SBA Pre-Qual - Small Business owners can receive assistance in having their loan applications for up to $250,000 potentially sanctioned by the SBA before they are taken to the lender for consideration. Lo-Doc - Once the Small Business owners have met the lenders requirements for credit, this program offers a simple one-page SBA application form and rapid turn-around on approvals of loans for up to $150,000. SBA Express - Available for loans up to $2 million. It authorizes the SBA preferred lenders to use mostly their own forms, analysis and procedures to process, service and liquidate the SBA guaranteed loans Small Office/Home Office (SOHO) Loan Initiative - Combines financial and technical assistance to enable small and home-based business owners to access business loans instead of consumer loans. CAP Lines - designed to help Small Businesses meet their short-term and cyclical working capital needs. International Trade Loan Program - provides financing to Small Businesses either engaged in international trade, or adversely affected by competition from imports. The SBA may guaranty up to $1.25 million. Export Express Loan Program - to assist Small Businesses, including export trading companies and export management companies to develop foreign markets. U.S. Export Assistance provides trade promotion and export finance assistance for entrepreneurs. Defense Loan and Technical Assistance (DELTA) - Joint effort by the SBA and the Department of Defense to provide financial and technical assistance to defense-dependent small firms affected by defense reductions. SBA504 Loan - provides long-term, fixed rate, subordinate mortgage financing for acquisition and/or renovation of capital assets, including land, buildings, and equipment. Microloan Program - provides small loans ranging from under $500 to $35,000. The SBA makes funds available to non-profit intermediaries that, in turn make the loans directly to entrepreneurs. Small Business Investment Company Program (SBIC) - This program fills the gap between the availability of venture capital and the needs of small businesses that are either starting or growing. Community Adjustment & Investment Program - Created to help communities that suffered job losses due to changing trade patterns following the North American Free Trade Agreement (NAFTA). Community Express Pilot Loan Program - a unique and innovative SBA loan program designed to provide streamlined business financing and management and technical assistance to targeted small businesses. Disaster Assistance - Designed for funding long-range recovery from private-sector, non-agricultural disaster victims. Fisheries Finance Program - Direct loans for reconstruction or reconditioning of fishing vessels and rennovation, repair or construction of fisheries shore side facilities. www.noaa.gov Veterans Business Development Program - under auspices of U.S. Small Business Administration for business counseling, assistance with writing business plan, assistance in obtaining federal contracts and rehabilitative business aid. Contact Stanley W. Karwacki, Veterans Business Development Officer at 410-962-6195, ext. 340. Tax Credits/Deduction Work Opportunity Tax Credit (IRS Code Section 51) For employers who hire certain targeted low-income groups, including people referred from vocational rehabilitation agencies and individuals receiving Supplemental Security Income (SSI). Disabled Access Tax Credit (IRS Code Section 44) For small businesses with 30 or fewer full time employees for the cost of providing reasonable accommodations such as sign language interpreters, readers, materials in alternative form (e.g. Braille), purchase of adaptive equipment or modification of existing equipment, or removal of architectural barriers (up to $5,000 annually). Architectural/Transportation Barrier Removal Tax Deduction (IRS Code Section 190) Available to businesses of any size for the costs of removing barriers for people with disabilities, up to $15,000 annual deduction. Additional information on Federal Loans and Grants in the Catalog of Federal Domestic Assistance, at www.cfda.gov Grants Assisted Living Conversion for Eligible Multi-family Housing Projects - for private non-profit owners of eligible developments to convert some or all of the dwelling units in a project into Assisted Living Facilities (HUD) Renewable Energy Systems and Energy Efficiency Improvements Program to help small businesses reduce energy costs and consumption and help meet the nation's critical energy needs (USDA) PRIVATE FUNDING Foundations-Grants Local private funding for non-profits and charities is available through the following foundations. Applicants should contact them, in writing, with a description of the project. The respective Boards of Directors will give consideration and respond if the project fits their criteria. Mid-Shore Community Foundation 102 E. Dover Street, Easton, MD 21601. This organization administers several private funds. For Dorchester County, the relevant fund would be the Todd Foundation. Nathan Fund c/o Edward Nabb, Esq., 526 Poplar Street, Cambridge, MD 21613. Applicant must have 501C-3 designation. All requests must benefit the population in Dorchester County. This fund prefers projects involving capital costs rather than operating expenses. Applications are reviewed in November of each year and scheduled for awards in the next calendar year. Waddell Foundation c/o Thomas Robbins, Robbins, Adams & Co. 126 Market Square Cambridge, MD 21613. This foundation will accept requests only from groups having a federal 501(c) (3) designation. Requests for funding should include a projection description, formal budget and must be for projects that benefit the local community (Dorchester County). Requests are reviewed quarterly or as needed. DAZED AND CONFUSED?...CONTACT DORCHESTER FIRST! joy@dorchesterfirst.com We'll help you determine which of these programs may apply to you. |
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Home | Site Directory | Contact Us | Additional Sources of Information Dorchester First is an initiative of the Heart of Chesapeake Country Heritage Area, an Office of the Dorchester County Economic Development Department © Copyright 2007 Dorchester County, Maryland - All rights reserved. This material is based upon work supported by the Economic Development Administration, US Department of Commerce Grant Agreement through a grant to the Rural Development Center at the University of Maryland Eastern Shore an EDA University Center, under agreement number EDA 01-66-07918. |