The Administration provides financial assistance
to Maryland businesses for energy conservation or
generation projects. It issues tax-exempt or taxable-
rate revenue bonds or notes which provide below-
market interest rates. If necessary, the Maryland
Industrial Development Financing Authority may
insure all or part of such obligations.

TRADE FINANCE PROGRAM
Marie V. Torres, Director
(410) 767-6382

To encourage Maryland businesses to export
Maryland products and services, the Trade Finance
Program was established under the Maryland In-
dustrial Development Financing Authority. The
Program is designed to provide pre-export working
capital and financing of shipments abroad. With the
Authority serving as an insurer of the obligation,
financing is provided by lending institutions.
The Trade Finance Program also works with the
Export-Import Bank of the United States (Exim-
bank). To help Maryland businesses obtain financ-
ing assistance from Eximbank, the Program
packages Eximbank's Working Capital Guarantee
Program applications and obtains foreign credit-
risk protection, loans, and loan guarantees for for-
eign buyer financing.

MARYLAND SMALL BUSINESS
DEVELOPMENT FINANCING AUTHORITY
Dorothy E. Brunson, Chair, 1997
Stanley W. Tucker, Director
(410) 333-4270

The Maryland Small Business Development Fi-
nancing Authority began in 1978 (Chapter 879,
Acts of 1978). To provide financial assistance to
socially and economically disadvantaged persons
who own small businesses within the State, the
Authority administers four programs.
Government Contract Financing Program. For
eligible firms with government or public utility
contracts, the Authority may guarantee a loan from
a financial institution; it also may provide a direct
loan for working capital and equipment. These
guarantees or loans may be offered only to fulfill
contracts on projects financed by federal, State or
local government, or by a utility regulated by the
Public Service Commission.
Long-Term Guarantee Program. For all eligible
firms, the Authority may guarantee and/ or pay an
interest rate subsidy on a long-term loan made by
a financial institution. The loan may be used for
working capital, acquisition and related installation
of machinery and equipment, or needed improve-
ments to real property owned by the applicant.
Equity Participation Investment Program. For
all eligible firms, the Authority may invest up to 45
percent or $100,000 (whichever is less) of funds to

start a franchise operation. The Authority also may
invest up to 25 percent or $500,000 (whichever is
less) of funds to acquire a profitable business. For
each of these options the Authority requires the
initial investment to be recovered within seven
years. The Authority also may invest up to
$500,000 in technology-based businesses.
Surety Bonding Programs. For any small contrac-
tor, the Guaranty Assistance Program helps secure
bonding by guaranteeing up to 90 percent of the
losses that a surety company incurs in the event of
a breach of contract. Total exposure may not exceed
$900,000. All small businesses also are eligible for
the Direct Bonding Program. Small contractors
secure bonding by issuing bid, performance and
payment bonds directly. Bonds issued under this
program cannot exceed $250,000 each.
Programs of the Maryland Small Business De-
velopment Financing Authority are unique. A ma-
jor criterion for approval of Authority guarantees
and loans is the economic impact resulting from the
use of available funds. This impact is measured
according to the projected number of jobs retained
and created, and the projected amount of tax reve-
nue generated from the use of these funds.
Since 1994, funds under the Authority have
been managed privately. In 1992, the U.S. Con-
gress allowed states to use public funds to establish
specialized small business investment companies to
serve disadvantaged business owners (P.L. 102-
366). Two years later, the Maryland Small Business
Development Financing Administration was
authorized to organize itself into a private Mary-
land corporation that would be such a company
(Chapter 691, Acts of 1994). The Department
contracted with that privatized organization to ad-
minister programs for a period of three years and
has an option to renew the contract for two years.
The Authority has nine members. Seven are
appointed to five-year terms by the Governor. The
Secretary of Business and Economic Development
and either the State Treasurer or Comptroller, as
designated by the Governor, serve ex officio (Code
1957, Art. 83A, secs. 5-1003 through 5-1012).

DIVISION OF MARKETING

Victor L. Hoskins, Assistant Secretary
for Marketing

217 East Redwood St.
Baltimore, MD 21202—3316 (410) 767-6866

The Division of Marketing originated in 1959
when the Department of Economic Development
was created to encourage businesses to locate in
Maryland and to retain and expand existing enter-
prises (Chapter 185, Acts of 1959). These functions
later devolved on the Division of Business Devel-