MARYLAND INDUSTRIAL DEVELOPMENT
FINANCING AUTHORITY
Thomas H. Mullaney, Chair, 1997
Bernard Koman, Vice-Chair, 1997
Arthur S. Drea, Jr., Executive Director & Secretary
(410) 767-6380

The Maryland Industrial Development Financ-
ing Authority was created in 1965 (Chapter 714,
Acts of 1965). The Authority assists businesses
seeking to locate or expand operations in Maryland.
Financial aid is offered through four loan-financing
programs: Traditional Bond; Conventional Loan;
Maryland Enterprise Incentive Deposit Fund; and
Maryland Seafood and Aquaculture Loan Fund.
Under the tax-exempt Traditional Bond Pro-
grams, nonprofit organizations (501(c)(3)) can fi-
nance 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. The Bond
Programs benefit 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.
Through the Traditional Bond 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,
industrial development authorities, and other
Maryland public bodies to finance a specific facility
for a manufacturing company. There is a $5 million
ceiling on the insurance for each transaction. Cer-
tain revenue bonds are exempt from federal and
Maryland income tax (but not from real estate or
personal property taxes). Therefore, interest rates
on these bonds are generally lower than interest
rates on conventional loans.
The Authority also may issue bonds under and
in accordance with the Maryland Economic Devel-
opment Revenue Bond Act.
Under its Conventional Loan Program, the
Authority insures conventional loans made by finan-
cial institutions. The Authorized Purpose Insurance
Fund is used as reserves for loans and other obligations
insured under the Conventional Loan Program.
By the Conventional Loan Program or the Export
Financing Program, the Authority may insure a loan
or other obligation, or pay or insure the payment of
premiums or fees for insurance, guarantees, or other
credit support from a third party. 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 accrued interest
thereon, or $1 million per transaction.
To participate in programs of the Maryland Indus-
trial Development Financing Authority, a company

must qualify generally in each of three basic cate-
gories: legal eligibility, economic impact, and
creditworthiness (Code 1957, Art. 83A, secs. 5-
901 through 5-941; Federal Internal Revenue
Code, sec. 146).
The Maryland Industrial Development Financ-
ing Authority also administers the Maryland Enter-
prise Incentive Deposit Fund. Started in 1989, the
Fund assists eligible small businesses in fixed asset
financing (Chapter 822, Acts of 1989). This financ-
ing assistance is provided through the placement of
a certificate of deposit with a participating lender
who agrees to make a five-year term loan to the
business at a loan interest rate three percent less
than the rate normally charged. Concurrently, the
Fund agrees to accept an interest rate on the cer-
tificate which is three percent less than the market
rate on certificates of similar maturity. This assis-
tance may not exceed $500,000.
An eligible business is a for-profit business, em-
ploying 500 people or less, located in a county with
a population of less than 200,000 and an unem-
ployment rate of at least 130 percent of the rate for
the State during the most recent four consecutive
quarters.
Established in 1990, the Maryland Seafood and
Aquaculture Loan Fund fosters expansion, mod-
ernization, and innovation in the seafood process-
ing and aquaculture industries (Chapter 511, Acts
of 1990). Administered by the Maryland Industrial
Development Financing Authority, the Fund can
provide a loan of up to half the cost of a project
with the maximum loan being $250,000. The in-
terest rate on loans is fixed at a rate below the prime
rate of interest at the time the loan is approved.
Loans may be used for equipment, real estate ac-
quisition, and construction of aquaculture parks,
but not for working capital. The maximum loan
term is 20 years.
The Maryland Industrial Development Financ-
ing Authority has nine members. Seven are named
to five-year terms by the Secretary of Business and
Economic Development with the Governor's ap-
proval. The Secretary of Business and Economic
Development, and either the State Treasurer or
Comptroller of the Treasury, as designated by the
Governor, serve ex officio. The Authority appoints
the Executive Director who serves as Secretary.

MARYLAND ENERGY FINANCING
ADMINISTRATION
Luther B. Miller, Jr., Director
(410) 767-6379

Created in 1981 in response to federal funding
initiatives for energy conservation and alternative
source development, the Maryland Energy Financ-
ing Administration became affiliated with the
Maryland Industrial Development Financing
Authority in 1988 (Chapter 141, Acts of 1988).