opment Financing Authority, and the Maryland
Small Business Development Financing Authority.

COMMUNITY FINANCING GROUP
Roger E. Drechsler, Director
(410) 767-6351

The Community Financing Group started in
April 1991. It consists of the Maryland Industrial
and Commercial Redevelopment Fund, the Mary-
land Industrial Land Act Program, and the Com-
munity Development Block Grant Program.
The Maryland Industrial and Commercial Rede-
velopment Fund (MICRF) began operations in 1980.
To support local commercial or industrial redevelop-
ment efforts, the Fund administers State loans, grants,
and loan guarantees to local governments.
Fund money is used to encourage private invest-
ment in industrial and commercial redevelopment
projects that retain or create jobs and increase tax
revenues. MICRF funds may be used directly by a
local jurisdiction, or passed through to a third party
committed to carrying out the project (Code 1957,
Art. 83A, secs. 5-801 through 5-807).
The Maryland Industrial Land Act (MILA) Pro-
gram started in 1972 (Chapter 360, Acts of 1972).
The intent of the Program is to ensure appropriate
sites for industry throughout the State. The Program
may acquire and preserve such sites for the State in
partnership with local governments (Code 1957, Art.
83A, secs. 5-701 through 5-715).
Annually, Maryland receives federal funds for
the Community Development Block Grant Program
administered by the Department of Housing and
Community Development. A portion of those funds
is set aside to provide loans and grants to municipali-
ties for economic development with an industrial or
commercial focus. That set-aside amount is overseen
by the Community Financing Group.

DAY-CARE FINANCING PROGRAMS
Joan Y. Case, Director
(410) 767-6345

Formed in 1988, Day-Care Financing Programs
administers three funds to expand quality day care in
Maryland and aid day-care developers and employers.
The financing funds assist small business owners.
The Day-Care Facilities Loan Guarantee Fund
was organized in 1983 to help small businesses providing
day care (Chapter 585, Acts of 1983). The Fund guar-
antees up to 80 percent of loans by a bank or private
lender. It is available to day-care centers for infants,
toddlers, and preschool-age children, as well as elderly
and medically handicapped adults. Loans can be used for
the purchase of land, equipment, and supplies, renova-
tion, building construction, and working capital (Code
1957, Art. 83 A, secs. 6-101 through 6-113).

The Child-Care Facilities Direct Loan Fund was
formed in 1988 (Chapter 248, Acts of 1988). To
day-care providers, the Fund lends up to 50 percent
of the cost of construction, renovation, or acquisition
of real property. It may not be used to finance the
purchase of equipment and supplies. Neither may it
be used as working capital, nor to refinance existing
liens. For in-home day care, a minimum amount of
$15,000 may be borrowed from the Fund (Code
1957, Art. 83A, secs. 6-201 through 6-213).
The Child-Care Special Loan Fund began in
1992 (Chapter 50, Acts of 1992). The Fund lends
child-care providers from $1,000 to $10,000 to ex-
pand or improve their facilities, meet State and local
licensing requirements, and improve the quality of care
(Code 1957, Art. 83A, secs. 6-301 through 6-312).

DAY-CARE FACILITIES FINANCING COMMITTEE

Denise Kerley, Chair, 1997
(410) 605-6479

The Day Care Facilities Financing Committee
was created in 1988. The Committee reviews and
approves applications for funding under the Day
Care Facilities Loan Guarantee Fund and the
Child-Care Facilities Direct Loan Fund.
The Committee has seven members. Six are ap-
pointed to three-year terms by the Secretary of Business
and Economic Development. One serves ex officio.

INVESTMENT FINANCING GROUP
Ronald M. Blank, Director
(410) 767-6358

The Investment Financing Group was organ-
ized in 1995. The Group provides for direct invest-
ment in Maryland companies through three
programs: Challenge Investment, Enterprise In-
vestment, and Maryland Venture Capital Trust.
The Challenge Investment Program may invest
$50,000 as "seed money" in a technology-driven
Maryland company. Matched with $50,000 from a
co-investor, the Program provides a new business
with $100,000 in capital. The investment is to be
repaid over a ten-year period. Annually, the Pro-
gram invests $500,000, making five $50,000 in-
vestments, every six months.
The Enterprise Investment Fund was created in
late 1993. The Fund enables the Department to
make direct equity investments in "second stage"
technology-driven businesses in Maryland. Invest-
ments range from $150,000 to $250,000. The
decision to invest is based on the potential return,
the range of economic development, and the num-
ber of jobs that will be created. Requiring a three-
to-one co-investor match, the Fund expects to
make five to six investments annually.
The Maryland Venture Capital Trust also is
administered by the Department through the In-
vestment Financing Group.