(The Center Square) — Federal taxpayer money, including $198 million, will go to Maryland’s small business sector which employs nearly half of the state’s workforce.
Statewide initiatives will support the state’s continued investments in underserved communities by targeting areas that have large numbers of small, socially and economically disadvantaged individual businesses, Governor Larry Hogan said. in a press release.
Small businesses make up 99.5% of all businesses and employ 49.3% of workers in Maryland, according to an advocacy office for the US Small Business Administration. reportt. Racial minorities made up 42.5% of workers and owned 35.9% of businesses. And 68.6% of state enterprises employ one to four people.
The Maryland Department of Housing and Community Development, the Maryland Department of Commerce, and the Maryland Technology Development Corporation will use funds from the state’s Small Business Credit Initiative to expand nine loan and investment in state enterprises, the governor’s office said.
“The funds will be used to support businesses that have historically had limited growth opportunities, including very small businesses and socially and economically disadvantaged businesses,” said Candace Pruett, business consultant at the Small Business Development Center in her office in Anne Arundel County. Square.
Very small businesses are deemed to have less than 10 employees.
“Technical assistance for eligible businesses will include legal, accounting and financial advisory services,” Pruett said.
These funds are issued only in the form of loans or equity investments. SSBCI does not offer grants, according to its website.
The DHCD will disburse up to $103 million in its three Neighborhood BusinessWorks program initiatives, according to the SSBCI. It will provide financing in the form of loans to small businesses, owner/operator occupied development projects and non-profit organizations.
The Maryland Department of Commerce, through its Small Business Development Financing Authority programs, will provide loans and equity to all small businesses unable to obtain adequate business financing on reasonable terms, indicates the website.
The $50 million TEDCO will be deployed for venture capital and seed programs through equity financing for early-stage technology and life sciences companies and economically underserved founders and communities, the website reported. SSBCI.