State Business Strategies: Invest, Protect, Respond

1. State Business Strategies: Invest, Protect and RespondOctober 28, 2011MEDA Fall Conference – Turf Valley, MD Moderator Dominick Murray, Deputy Secretary, DBEDPanelistsGreg Cole, Exec Dir. MIDFA/Finance Dir. Rural Regions, DBEDUrsula Powidzki, Program Director, Office of Business Development, DBEDStanley Tucker, President/CEO Meridian Management Group, Inc.Dawn Medley, Director, Business Lending Programs, DHCD

2. State Business Strategies: Invest, Protect, Respond • Maryland Made Easy/Fast Track – making it easier for businesses to succeed • State Small Business Credit Initiative – enhancing existing capabilities with federal funds • Strategic Public/Private Partnerships – leveraging the strength of our business community to advance economic development goals

3. Maryland Made Easy (MME) - Governor’s Initiative uniting a broad range of efforts aimed at making it easy for businesses to interface with State government • Provides the business community with the tools and resources needed to effectively and efficiently do business with the government.

4. MME includes the following efforts: • Fast Track, executive order signed on June 30, 2011 • Governor’s Job Creation Through Regulatory Reform, executive order signed October 17,2011 • Central Business Licensing (CBL) • State Highway Administration (SHA) Permits MME website: easy.maryland.gov

5. State Small Business Credit Initiative: Enhancing Existing Capabilities Small Business Jobs Act of 2010 • Small Business Loan Fund - $30 billion for recapitalization of Community Banks • State Small Business Credit Initiative - $1.5 billion for credit support programs

6. State Small Business Credit Initiative: Enhancing Existing Capabilities State Small Business Credit Initiative (SSBCI) • $23 million allocation to Maryland = $230 million of private sector financing • Deployed to all segments of the small business life cycle: • $1.5 million – Neighborhood Business Works • $6.5 million – MD Venture Fund • $4.5 million - MD Small Business Financing Authority • $10.5 million – MD Industrial Development Financing Authority

7. The Maryland Small Business Development Financing Authority Assisting the financing needs of small, minority and women-owned businesses in Maryland “MSBDFA” ‘Serving the Underserved’

8. Four unique and complimentary program components: - Contract Financing - Loan Guarantees - Surety Bonding - Equity Financing What MSBDFA has to offer to Marylanders

9. GENERAL QUALIFICATIONS • Company’s principal place of business must be in Maryland • Company must be unable to obtain financing or bonding on reasonable terms from traditional lenders or commercial sureties • Principals and managers must have adequate experience in the industry in which the financing is being sought • Company must show ability to repay the loan – or claims paid under a bond • Company and principals must display a history of financial responsibility • Transaction must create economic impact for the state in terms of jobs and tax revenue

10. USE OF PROCEEDS • Working Capital (Accounts Payable, Payroll, Materials, etc.) • Equipment • Purchase of Real Estate (Must be occupied by the Business) • Leasehold Improvements • Business Acquisitions • Refinance Existing Debt General Uses of Funds

11. HOW TO APPLY FOR ASSISTANCE Contact: Meridian Management Group, Inc. In the Baltimore Metro Area: In the Washington Metro Area: 826 E. Baltimore Street 1100 Mercantile Lane, Su. 115A Baltimore, Maryland 21202 Largo, Maryland 20774 Phone (410) 333-4270 Phone (800) 248-1960 Fax (410) 333-2552 Fax (410) 883-6160 Applications and program summaries are available online at: www.mmggroup.com

12. SMALL BUSINESS FINANCING TOOLKITDivision of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

13. Business Lending Programs • Neighborhood BusinessWorks Loan Program • Microenterprise Loan Program • Linked Deposit • Maryland Capital Access Program • Be SMART Loan Program

14. Business Lending Programs Neighborhood BusinessWorks Program provides gap financing to new or expanding small businesses and nonprofit organizations in designated Sustainable Communities throughout the State Microenterprise Loan Program • Program provides financing to new or existing small businesses and nonprofit organizations in designated Sustainable Communities throughout the State Linked Deposit • Program provides more affordable capital to MDOT certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banks for businesses in Maryland

15. Business Lending Programs Maryland Capital Access Program Program allows lenders to make loans that fall slightly outside of their normal credit guidelines for businesses located in Priority Funding Areas throughout the State. • A loss reserve account is created to strengthen applications with weak credit or collateral • Be SMART Business (unsecured) • Financing for upgrading energy efficient appliances, heating and cooling systems, programmable thermostats, ceiling fans, insulation, windows, doors, building envelope, etc. • Be SMART Business Plus (secured) • Larger energy optimization projects with a focus on energy cost saving measures for buildings exceeding 6,000 sq. ft. or extensive energy efficiency retrofits

16. Neighborhood BusinessWorks/Microenterprise Project: Potomac Gourmet Pantry Loan Amount: $300,000 Location: Prince George’s County Jobs Created: 25 Loans Closed: October 2010 Project: Babe (A Boutique) Loan Amount: $35,000 Location: Baltimore City Jobs Sustained/Created: 2 Loans Closed: June 2011

17. Linked Deposit/Maryland Capital Access Borrower: Amtrac Railroad Contractors of Maryland, Inc. Loan Amount: $431,660 Location: Washington County Jobs Sustained: 3 Loans Closed: May 2009 Loan Amount: $2,500 Enrolled by: PNC Bank Location: Anne Arundel County Jobs Created: 7 Loan Closed: March 2008

18. Thank You Contact Information: Dawn R. Medley, Director, Business Lending Programs 100 Community Place, Crownsville MD 21032 Phone: 410-514-7237 Fax: 410-514-7925 Email: Medley@mdhousing.org www.mdhousing.org

19. Strategic Partnerships: Cyber - What we’ve Learned • MD: dynamic marketplace embracing .gov, .mil and .com • Rapidly evolving industry and product cycles offer powerful opportunities • State plays supporting and organizing role • Motivated and active business leadership • Collaboration makes us strong

20. Strategic Partnerships: Seizing the Moment • Dynamic staffing and support: responsive to industry • Raising our national profile: Cyber Security leaders sell Maryland • Celebrating and leveraging innovation: what comes before jobs and square footage • Tech transfer to IPO: on the same continuum

22. Strategic Partnerships: Innovation – Finding High Growth Companies • InvestMaryland raises venture capital • MD Venture Fund will have more capacity • Other investors are out there too Let’s find promising firms together

23. State Business Strategies: Invest, Protect, Respond • In Summary…. • Resources: MD has tools to help businesses – emerging entrepreneurs/established businesses – access capital • Navigating Government: MD is focused on helping businesses overcome regulatory barriers • Strategic Partnerships: MD is leveraging corporate community for entrepreneurial growth

24. Questions/Comments The State of Maryland is Open For Business! Thank You!