Ex officio: J. Randall Evans, Secretary of
Economic and Employment Development; Louis L.
Goldstein, Comptroller of the Treasury.

Benjamin L. Hackerman, Executive Director and
Secretary

World Trade Center, Suite 2244
401 E. Pratt St.
Baltimore 21202 Telephone: 333-4262

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 their operations in Maryland.

MIDFA operates four loan programs. Under its
Traditional and tax-exempt Umbrella Programs,
manufacturing companies can finance land acqui-
sition and the purchase of all types of buildings
and equipment. The Bond Insurance Fund is used
as reserves for financial assistance provided under
the Traditional and Umbrella Programs.

Under its Conventional Loan Program,
MIDFA insures many types of conventional loans
made by financial institutions. The Authorized
Purpose Fund is used as reserves for loans and
other obligations insured under the Conventional
Loan Program.

MIDFA also is authorized to issue bonds under
and in accordance with the Maryland Economic
Development Revenue Bond Act.

Through the Traditional Program and its Bond
Insurance Fund, MIDFA insures all or any part
of the payments of principal and interest under
tax-exempt economic development revenue bonds
issued by Maryland counties, municipalities, in-
dustrial development authorities, and other Mary-
land public bodies to finance a specific facility for
a manufacturing company. Revenue bonds are ex-
empt from federal and Maryland income tax (but
not from real estate or personal property taxes).
Therefore, interest rates on these bonds are gener-
ally lower than interest rates on conventional
loans.

Under its Umbrella Program, MIDFA may is-
sue, sell, and insure revenue bonds to provide
long-term, fixed-rate, tax-exempt financing to
smaller companies and to provide access to re-
gional and national capital markets. By pooling
many small loans, MIDFA sells its own "umbrel-
la" bonds in the public bond market. Sale pro-
ceeds from these bonds are made available as
loans enabling individual companies to finance
specific facilities.

The Traditional and Umbrella Programs benefit
participating companies by providing 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, MIDFA may insure 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 princi-
pal amount of the loan or other obligations plus
accrued interest thereon, or $1 million per trans-
action.

MIDFA may insure both asset-based and work-
ing capital related financing. Examples of the
types of loans and other obligations that may be
insured by the Authority include Term Loans,
Start-Up Loans, Acquisition Loans, Letters of
Credit, Leasing Transactions, and Revolving
Loans.

To participate in MIDFA's programs, a compa-
ny must generally qualify in each of three basic
categories: legal eligibility, economic impact, and
credit worthiness (Code Financial Institutions Ar-
ticle, sees. 13-101 through 13-141; Federal Inter-
nal Revenue Code, sec. 103).

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
approval of the Governor. The Secretary of Eco-
nomic and Employment Development or designee,
and either the State Treasurer or Comptroller of
the Treasury, as designated by the Governor,
serve ex officio. The Authority appoints an Execu-
tive Director who serves as Secretary.

MARYLAND SMALL BUSINESS
DEVELOPMENT FINANCING
AUTHORITY (MSBDFA)

Chairperson: Lloyd M. Arrington, 1988

Cecil E. Flamer, 1987; Lillian H. Lincoln, 1987;
John J. Oliver, Jr, 1989; William C. Womble, Jr.,
1989; J. Roger Sullivan, 1990; Jerry Feigen, 1991.

Ex officio: J. Randall Evans, Secretary of
Economic and Employment Development; Lucille
Maurer, Treasurer of the State.