Equity Participation Investment Program. For all
eligible firms, the Authority may invest up to 45
percent or $100,000 (whichever is less) as equity
or debt needed to start a franchise operation. The
Authority requires the initial investment to be re-
covered within seven years. The Authority also may
invest up to 25 percent or $500,000 (whichever is
less) as equity or debt needed to acquire an existing
profitable business. The Authority requires the in-
itial investment to be recovered within seven years.
The Authority also may invest up to $500,000 as
equity or debt needed by technology-based busi-
nesses.
Surety Bonding Programs. All small businesses are
eligible. The Guaranty Assistance Program helps the
small contractor secure bonding by guaranteeing
up to 90 percent of the losses that a surety company
incurs in the event of a breach of contract with a
total exposure not to exceed $900,000. All small
businesses are eligible for the Direct Bonding Pro-
gram, which helps 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.
The Authority's seven members are appointed
to five-year terms by the Governor. The Secretary
of Economic and Employment Development and
either the State Treasurer or Comptroller, as desig-
nated by the Governor, serve ex officio (Code Fi-
nancial Institutions Article, secs. 13-201 through
13-234).

DAY CARE FINANCING PROGRAMS
Joan Case, Director
(410) 333-4308

Formed in 1988, Day Care Financing Pro-
grams administers two funds to promote eco-
nomic development, increase employment, and
expand quality day care in Maryland. To aid em-
ployers and developers in the day care industry,
the two financing funds provide financial assis-
tance for small business owners.
The Day Care Facilities Loan Guarantee Fund
was created in 1984 to help small businesses pro-
viding day care. The Fund finances up to 80 percent
of loans by a lender. It is available for day care
centers for infants, toddlers, and preschool age
children, as well as elderly and medically handi-
capped adults. Loan proceeds can be used for the
purchase of land, equipment, and supplies; renova-

tion; building construction; and working capital
(Code 1957, Art.83A, secs. 6-201 through 6-213).
The Child Care Facilities Direct Loan Fund was
formed in 1988 (Chapter 248, Acts of 1988). The
Fund can be used for the construction, renovation,
or acquisition of real property. It may not be used
to finance the purchase of equipment and supplies,
or working capital, or to refinance existing liens. A
minimum amount of $15,000 can be borrowed
from the Fund (Code 1957, Art. 83A, secs. 6-2A-
01 through 6-2A-13).

COMMUNITY FINANCING GROUP
Roger E. Drechsler, Acting Director
(410) 333-4304

The Community Financing Group consists of
the Maryland Industrial & Commercial Redevelop-
ment Fund, the Maryland Industrial Land Act Pro-
gram, and the Community Development Block
Grant Program.
The Maryland Industrial and Commercial Rede-
velopment Fund (MICRF) began operations in
1980. To provide supplemental financing that sup-
ports local commercial or industrial redevelopment
efforts, the Fund administers State loans, grants,
and loan guarantees to local governments.
Fund money is used to promote private invest-
ment in industrial and commercial redevelopment
projects that retain jobs, create new jobs, and in-
crease tax revenues. MICRF funds may be ex-
pended directly by a local jurisdiction, or passed
through to a third party committed to carrying out
the project (Code 1957, Art. 83A, secs. 5-501
through 5-507).
The Maryland Industrial Land Act (MILA) Pro-
gram began in 1972 (Chapter 360, Acts of 1972).
The intent of the Program is to ensure appropriate
sites for industry throughout the State. The Pro-
gram may acquire and preserve such sites for the
State in partnership with the local government
(Code 1957, Art. 83A, secs. 5-401 through 5-414).
Annually, Maryland receives federal funds for
the Community Development Block Grant Pro-
gram administered by the Department of Hous-
ing and Community Development. A certain
percentage of those funds is set aside to provide
loans and grants to municipalities to assist in
economic growth programs with an industrial or
commercial focus. That set-aside amount is ad-
ministered through Financing Programs in the
Department of Economic and Employment De-
velopment.