munications functions generate new prospects and
clients, and enhance and support targeted industrial
development.
The Office oversees management of all Mary-
land foreign offices; coordinates and logistically
supports trade missions; and provides liaison with
foreign embassies in Washington, DC. The Office
also supervises the Division's International Assis-
tance Center; develops the Division's strategic mar-
keting plan; and creates and produces Division
publications. For other State agencies and the
Maryland business community, the Office gathers
intelligence about international activities and pro-
vides management information.

MARYLAND SISTERS PROGRAM
Jean Van Buskirk, Director
(410) 333-3072

The Maryland Sisters Program was initiated in
1986. The Program establishes special formal
agreements between Maryland and states or prov-
inces in other countries to promote trade and the
exchange of business, cultural, educational and sci-
entific information. Maryland presently has forty
affiliations with 24 nations, including seven sister
states: Anhui Province, People's Republic of China;
Jalisco, Mexico; Kanagawa Prefecture, Japan;
Kyongsangnam-Do, Korea; Nord Pas de Calais,
France; the Lodz Region in Poland; and Leningrad
Oblast. Maryland also has a partnership agreement
with the State of Rio de Janeiro in Brazil; an agree-
ment of mutual cooperation with the Walloon Re-
gion in Belgium; and a collaborative agreement
with the City of St. Petersburg, Russia.

FINANCING PROGRAMS

Arthur S. Drea, Jr., Assistant Secretary for
Financing Programs

217 East Redwood St.
Baltimore, MD 21202 (410) 333-6932

The Assistant Secretary for Financing Programs is
responsible for the Maryland Industrial Development
Financing Authority; Maryland Small Business Devel-
opment Financing Authority; Day Care Financing
Programs; and Community Financing Group.

MARYLAND INDUSTRIAL DEVELOPMENT
FINANCING AUTHORITY
Joseph Haskins, Jr., Chairperson, 1994
Thomas H. Mullaney, Vice-Chairperson, 1997
John G. Fitzpatrick, Executive Director & Secretary
(410) 333-4263

The Maryland Industrial Development Financ-
ing Authority (MIDFA) was created in 1965
(Chapter 714, Acts of 1965). The Authority pro-

vides financial assistance to enterprises seeking to
locate or expand operations in Maryland.
MIDFA operates four loan financing programs.
Under its tax-exempt Traditional Bond Programs,
nonprofit organizations (501(c)(3)) can finance
land acquisition and the purchase of all types of
buildings and equipment. The Bond Insurance
Fund is used as reserves for financial assistance
provided under the Bond Programs.
Under its Conventional Loan Program, the
Authority insures many types of conventional loans
made by financial institutions. The Authorized Pur-
pose Insurance Fund is used as reserves for loans
and other obligations insured under the Conven-
tional Loan Program.
MIDFA also may issue bonds under and in ac-
cordance with the Maryland Economic Develop-
ment Revenue Bond Act.
Through the Traditional Program and its Bond
Insurance Fund, the Authority may insure all or any
part of the payments of principal and interest under
tax-exempt economic development revenue bonds
issued by Maryland counties, municipalities, indus-
trial development authorities, and other Maryland
public bodies to finance a specific facility for a
manufacturing company. There is a $5 million ceil-
ing on the insurance for each transaction. Certain
revenue bonds are exempt from federal and Mary-
land income tax (but not from real estate or per-
sonal property taxes). Therefore, interest rates on
these bonds are generally lower than interest rates
on conventional loans.
The Bond Programs benefit companies by pro-
viding loans for a higher percentage of the costs of
the facility, at a lower interest rate, and for a longer
term than conventional financing.
Under the Conventional Loan Program or the
Export Financing Program, the Authority may in-
sure a loan or other obligation; insure the payment
of premiums or fees necessary to obtain insurance,
guarantees, or other credit support from a third
party; or pay such premiums or fees. Insurance
provided by the Authority may not exceed the lesser
of either 80 percent (or 90 percent in the case of
export financing) of the sum of the principal
amount of the loan or other obligations plus ac-
crued interest thereon, or $1 million per transac-
tion.
To participate in MIDFA's programs, a company
must generally qualify in each of three basic catego-
ries: legal eligibility, economic impact, and credit-
worthiness (Code Financial Institutions Article,
secs. 13-101 through 13-141; Federal Internal
Revenue Code, sec. 146).
MIDFA's policy and decision-making body is a
nine-member Authority. Seven members are ap-
pointed to five-year terms by the Secretary of Eco-
nomic and Employment Development with the