Upload File

a maryland entrepreneur's guide up 1.1 - wikimedia...angel groups to want to invest locally as...

  • Home
  • Documents
  • A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that
79
1 Terms of Use/ Disclaimer on page 77 A Maryland Entrepreneur's Guide A concise guide to federal and Maryland financing and support programs for emerging companies Contributed by the Maryland State Bar Association http://www.msba.org/sec_comm/sections/business/index.htm Chapter 1 ‐Private Financing Programs There are several types of early‐stage private equity available for business entrepreneurs. Other than your personal funds, there are the following sources: Chapter 2 ‐Maryland Financing Programs The state of Maryland has, among others, the following state sponsored financing programs for entrepreneurs to possibly access: Chapter 3 –Federal Financing Financing Programs provided by the U.S. Federal Government: Chapter 4 –Incubators University and Non‐University Incubators, Incubation Associations:

Upload: others

Post on 10-Mar-2020

1 views

Category:

Documents


0 download

Report

TRANSCRIPT

Page 1: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

1

TermsofUse/Disclaimeronpage77

AMarylandEntrepreneur'sGuideAconciseguidetofederalandMarylandfinancingandsupportprogramsfor

emergingcompaniesContributedbytheMarylandStateBarAssociation

http://www.msba.org/sec_comm/sections/business/index.htm

Chapter1‐PrivateFinancingProgramsThereareseveraltypesofearly‐stageprivateequityavailableforbusinessentrepreneurs.

Otherthanyourpersonalfunds,therearethefollowingsources:

Chapter2‐MarylandFinancingPrograms

ThestateofMarylandhas,amongothers,thefollowingstatesponsoredfinancingprogramsforentrepreneurstopossiblyaccess:

Chapter3–FederalFinancing

FinancingProgramsprovidedbytheU.S.FederalGovernment:

Chapter4–Incubators

UniversityandNon‐UniversityIncubators,IncubationAssociations:

Page 2: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

2

TermsofUse/Disclaimeronpage77

Chapter5–BusinessEnterprisePrograms

State&CountyBusinessEnterprisePrograms:

Chapter6–OpportunitiesforBusinessGrowth

Businessassociations,counsels,chambersofcommerceandotherbusinesssupportgroups:

Chapter7–TaxCreditandIncentivePrograms

Specialzoningandtaxcreditprograms:

Contents:1PRIVATEFINANCINGPROGRAMS1.1Introduction1.1.1Early‐StatePrivateEquity1.2AccessingEarly‐StagePrivateEquity

Page 3: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

3

TermsofUse/Disclaimeronpage77

1.2.1ActiveAngelGroups1.2.2Mid‐AtlanticVentureAssociation("MAVA")1.2.2.1Programs1.2.3SpringboardEnterprises2MARYLANDFINANCINGPROGRAMS2.1MarylandSmallBusinessDevelopmentFinancingAuthority(MSBDFA)2.1.1ContractFinancingProgram(CFP)2.1.2GuarantyProgram(GP)2.1.3EquityParticipatingInvestmentProgram(EPIP)2.1.4SuretyBondProgram(SBP)2.2MarylandIndustrialDevelopmentFinancingAuthority(MIDFA)2.2.1MIDFAFinancialAssistanceundertheConventionalProgram2.2.2EligibilityCriteria2.2.3ApplicationProcess2.2.4SpecialConditions2.2.5UseofProceeds2.2.6InterestRates2.2.7TermoftheLoanGuaranty2.3MarylandIndustrialPartnerships(MIPs)2.3.1EligibilityCriteria2.3.2Funding2.3.3ApplicationProcess2.4DepartmentofBusiness&EconomicDevelopmentInvestmentPrograms2.4.1ChallengeInvestmentProgram2.4.2EnterpriseInvestmentFundProgram2.4.3Applications2.5CountyandLocalSupport2.5.1BaltimoreCity‐BaltimoreDevelopmentCorporation(BDC)2.5.2AnneArundelCounty–EconomicDevelopmentCorporation2.5.3BaltimoreCounty–DepartmentofEconomicDevelopment2.5.4CarrollCountyDepartmentofEconomicDevelopment2.5.5CecilCounty‐OfficeofEconomicDevelopment2.5.6HarfordCounty‐OfficeofEconomicDevelopment2.5.7HowardCounty‐EconomicDevelopmentAuthority2.6OtherCountyEconomicDevelopmentOffices2.7MarylandAssistancetoAgriculturalBusiness2.7.1MarylandAgriculturalandResource‐BasedIndustryDevelopmentCorp(MARBIDCO)2.7.2OtherMarylandAgricultureAssistance3FEDERALFINANCINGPROGRAMS3.1U.S.SmallBusinessAdministration(SBA)GuarantyandLoanPrograms3.1.1SBAGenerally3.1.2SBALoanPrograms:3.1.2.1Basic7(a)LoanProgram3.1.2.27(m)LoanProgramorMicroLoanProgram3.1.2.3CDC504LoanProgram

Page 4: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

4

TermsofUse/Disclaimeronpage77

3.2SmallBusinessInnovationResearchProgram(SBIR)3.2.1EligibilityCriteria3.2.2ParticipatingFederalAgencies3.2.3SBIRApplicationProcess3.2.4IntellectualPropertyRights3.2.5TheSmallBusinessTechnologyTransferProgram(STTR)3.2.5.1EligibilityforForProfitEntities3.2.5.2EligibilityforNonprofitResearchInstitutions3.2.5.3ListofParticipatingAgencies.3.2.5.4ApplicationProcess.3.3SmallBusinessInvestmentCompany(SBIC)3.4CooperativeResearchandDevelopmentAgreements(CRADAs)3.4.1Purpose3.4.2Participation3.4.3Agreement3.4.4Proposals&Information3.5SmallBusinessConcern3.6SmallDisadvantagedBusinessConcern(SDB)&8(a)ProgramSmallDisadvantagedBusinessConcerns3.6.1Eligibility3.6.2Benefits3.7VeteranOwnedSmallBusinessConcern&ServiceDisabledVeteranOwnedSmallBusinessConcerns3.8Woman‐OwnedSmallBusinessConcerns(WOSB)3.8.1Eligibility3.8.2Benefits4INCUBATORS4.1UniversityIncubators4.1.1TechnologyAdvancementProgramatUniversityofMarylandCollegePark(TAP)4.1.2IncubatorandAccelerator‐UniversityofMarylandBaltimoreCounty(UMBCTechCenter)4.2Non‐UniversityIncubators.4.2.1ChesapeakeInnovationCenter4.2.2EmergingTechnologyCenter(ETC)4.2.3FrederickInnovativeTechnologyCenter,Inc.(FITCI)4.2.4GarrettInformationEnterpriseCenter4.2.5GermantownInnovationCenter4.2.6HagerstownCommunityCollege'sTechnicalInnovationCenter(WashingtonCounty’sBusinessIncubatoratHagerstownCommunityCollege)4.2.7HigherEducationandAppliedTechnologyCenter4.2.8NeotechIncubator4.2.9PrinceGeorge’sCounty–TechnologyAssistanceCenter4.2.10RockvilleInnovationCenter(RIC)4.2.11ShadyGroveInnovationCenter4.2.12SilverSpringInnovationCenter(SSIC)

Page 5: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

5

TermsofUse/Disclaimeronpage77

4.2.13TawesScience/TechnologyIncubator4.2.14TowsonGlobal4.2.15WheatonBusinessCenter(WBIC)4.3IncubationAssociations4.3.1TheMarylandBusinessIncubationAssociation(MBIA)4.3.2TheNationalBusinessIncubationAssociation(NBIA)5BUSINESSENTERPRISEPROGRAMS.5.1MarylandMinorityBusinessEnterpriseProgram5.1.1EligibilityCriteria5.1.2MBEApplicationProcess5.2AnneArundelCountyMinorityBusinessEnterpriseProgram5.3BaltimoreCityMinorityBusinessEnterpriseProgram5.3.1EligibilityCriteria5.3.2MBEApplicationProcess5.4BaltimoreCountyMinorityBusinessEnterpriseProgram5.4.1EligibilityCriteria5.5HowardCountyMinorityBusinessEnterpriseProgram5.6MontgomeryCountyMinorityBusinessOutreachProgram5.7PrinceGeorge’sCountyMinorityBusinessEnterpriseProgram5.7.1EligibilityCriteria5.7.2ApplicationProcess5.8OtherLocalBusinessEnterpriseProgramsandResources6OPPORTUNITIESFORBUSINESSGROWTH6.1LocalChambersofCommerce6.1.1MarylandChambersofCommerce(MCC)6.1.2OtherlocalChambersofCommerce6.2MarylandTechnologyDevelopmentCorporation(TEDCO)6.2.1General6.2.2Programs6.2.2.1FundingOpportunities6.2.2.2BusinessAssistance6.2.2.3FederalLabOpportunities6.2.2.4BusinessIncubation6.3TheGreaterBaltimoreTechnologyCouncil6.4TechCouncilOfMaryland6.5SmallBusinessResourceCenters6.6MarylandSmallBusinessDevelopmentCenters(MDSBDCs)6.6.1Counseling6.6.2Training6.6.3Financing6.7WomenOnlyActivateProgram6.7.1ActivateProgram6.7.2NationalAssociationofWomenBusinessOwners6.8BusinessSchools6.9SpeakerSeries7TAXCREDITINCENTIVEPROGRAMS

Page 6: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

6

TermsofUse/Disclaimeronpage77

7.1EnterpriseZones7.2EmpowermentZones(federal)7.3OneMarylandEconomicDevelopmentRealPropertyTaxCredit7.4JobCreationTaxCredit7.5ResearchandDevelopmentTaxCredits7.6BioHeatingOilTaxCredit7.7BiotechnologyInvestmentIncentiveTaxCredit7.8BusinessesthatCreateNewJobsCredit7.9CellulosicEthanolTechnologyResearchandDevelopmentTaxCredit7.10CleanEnergyIncentiveTaxCredit7.11CommuterTaxCredit7.12CommunityInvestmentTaxCredit7.13Employer‐ProvidedLong‐termCareInsuranceCredit7.14EmploymentOpportunityTaxCredit7.15GreenBuildingTaxCredit7.16HeritageStructureRehabilitationTaxCredit7.17Long‐termEmploymentofEx‐FelonsTaxCredit7.18MarylandDisabilityEmploymentTaxCredit7.19Maryland‐MinedCoalTaxCredit7.20TelecommunicationsPropertyTaxCredit7.21WaterQualityImprovementTaxCredit[edit]PRIVATEFINANCINGPROGRAMS[edit]Introduction[edit]Early‐StatePrivateEquityThereareseveraltypesofearly‐stageprivateequityavailableforbusinessentrepreneurs.Otherthanyourpersonalfunds,therearethefollowingsources:(1)Angelsarewealthyindividualswhoinvestintheearly‐stageofstart‐upcompanies.Thebenefitofusingangelsforearly‐stagefinancingisthatitislesscomplicatedandgenerallyrequireslessexpensethanventurecapitalfinancing.However,therearedownsidestousingangels.Oftentheseindividualscanonlyprovideaone‐timeinvestment,whichmayrequireagreaternumberofinvestorstoprovidealloftheneededfinancingandcreateanadministrativeburden.Also,manytimesangelsarenotsophisticatedinvestorsandmayhaveunrealisticexpectationsregardingthereturnontheinvestment.Whenfinancingisobtainedfromangelsitisimportantfortheentrepreneurtoensurethattheangelisan“accreditedinvestor”undersecuritieslaws.(2)Venturecapitalisafundofpooledinvestmentsthatismanagedbyaventurecapitalist.Itgenerallybecomesinvolvedintheearlystageofacompanywiththeintentofgrowingthebusiness,whereareturnonitsinvestmentwillberealizedthroughaneventualIPOortradesale.Thebenefitsofventurecapitalarethatthefundsgenerallyhaveenoughresourcestoprovidemuchofthecompany’sneededfinancing,andmanyventurecapitalistscanalsoprovideassistancewithgeneralbusinessissues,includingformulatingabusinessstrategy,recruiting,andprovidingintroductionsintothebusinesscommunity.However,thedownsideofusingventurecapitalisthatitrequiressharedequity,andmanyventurecapitalistsinsistonalsosharingcontrolofthecompany(usuallythroughrepresentationontheboardof

Page 7: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

7

TermsofUse/Disclaimeronpage77

directors).Thisfinancingisgenerallynotavailabletosmallerstart‐upcompanies,astheventurecapitalfundsgenerallydesiretomakeinvestmentsupwardsof$500,000to$1,000,000.()AccessingEarly‐StagePrivateEquityActiveAngelGroupsAnactiveangelgroupconsistsofhighnet‐worthindividualswhojointogethertoinvestcollectivelyinentrepreneurialfirms.Theactiveangelgroupmeetsregularly(oftenmonthly)toreviewbusinessproposals.Oftenentrepreneursareaskedtomakepresentationstothemembershipofthegroup.Iftheactiveangelgroupdecidestomakeaninvestmentinastart‐upbusiness,theangelsworktogethertoconduct"duediligence"tovalidatethebusinessplan,statementsandhistoryoftheentrepreneurialteam.Themembersofactiveangelgroupstendtobeformerentrepreneursthemselvesandareattemptingtomakeareturnontheirinvestment,butoftenarealsotryingto“giveback”totheircommunitiesbyspurringeconomicgrowth,whichleadsactiveangelgroupstowanttoinvestlocallyasopposedtonationally.Someactiveangelgroupsaremorelikelytoinvestinfirmsthatarerecommendedbypeopletheytrust;therefore,itisimportantforentrepreneurstonetworkinthelocalcommunitytogainareferral.Examplesofpeopletocontactinclude:entrepreneurswhoarebackedbyangels,attorneyswhospecializeinequityinvestmentsinstart‐upbusinesses,accountantsandbusinesscounselors.ProcessActiveangelgroupsconductseveralstagesofreviewbeforemakingfundingdecisions.Whilenotwogroupsofactiveangelsarealike,belowisagenerallistofstagesofreview:1.Application/BusinessPlanAngelgroupwebsiteswillcontaininformationregardingtheprocesstocompletetheirapplication,whichoftenrequiressubmissiontheentrepreneur’sbusinessplan.2.Pre‐ScreeningOnceanapplicationhasbeencompletedorabusinessplanhasbeensubmitted,theangelgroupwillreviewittodetermineifthepotentialinvestmentopportunitymeetstheangelgroup’sgeneralrequirementsandinvestmentpreferences.3.ScreeningIfanapplicationisacceptedforfurtherreview,theentrepreneurwilloftenbeaskedtomeetwithasubsetoftheactiveangelgrouptoallowthegrouptofurtherunderstandthenatureofthepotentialinvestment,receivemoreinformationregardingthebusinessplan,andanswertheangels'questions.4.InvestmentMeetingIftheangelsinattendanceattheScreeningstageshowinterestintheentrepreneur'sbusiness,theentrepreneurwillbeinvitedtopresentinfrontofameetingtheentireactiveangelgroup.Thepresentationwillbefollowedbyaquestionandanswersession.Thesetypesofinvestmentmeetingsareusuallyheldonamonthlybasis.5.DueDiligenceIftheentireangelgroupshowsinterestinthebusiness,aperiodofduediligencewillbegin.Thisduediligencewillbeconductedbythoseangelsandspecialistswithknowledgeofthespecificindustryunderconsideration.Theduediligencewillbeathoroughreviewoftheentrepreneur’sbusinessplanandbusinessincludingthemanagementteam,marketingopportunities,asitevisit,customercalls,andfinanciallyanalysis.Thisprocesscantakeanywherefromafew

Page 8: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

8

TermsofUse/Disclaimeronpage77

weekstoafewmonths.6.TermSheetIftheangelgroupdecidestoinvestintheentrepreneur,atermsheetfortheinvestmentwillbenegotiated.Thistermsheetwillguidethelawyersinpreparinginvestmentagreementsandwilldeterminetherelationshipbetweentheangelgroupandtheentrepreneur.Examples:AngelCapitalAssociation:Associationofangelgroupsthatprovidesinformationandeducationforentrepreneursonangelinvesting.NewVantageGroup:AngelgroupfocusingonMid‐Atlanticregion.KaufmannFoundation:Providesadvocacyandeducationforentrepreneurs.Mid‐AtlanticVentureAssociation("MAVA")MAVAisanorganizationdesignedto"facilitateprivateequityinvestinginthemid‐AtlanticregionandrepresentthecollectiveinterestsofventurecapitalistswithinvestmentinterestsintheMid‐Atlantic."Itiscomprisedofover500venturecapitalprofessionalsfromover125venturecapitalfirms,whocollectivelymanagecapitaltotalingover$100billion.Programs1.ALPHAConnectisaprogramdesignedtobringtogetherinvestorswithpromisingtechnologiesindevelopmentatuniversities,federallaboratoriesandothernonprofits.Theprogramhostsavarietyofeventsthroughouttheyear,includingtheAnnualMid‐AtlanticInnovationShowcaseandMAVAALPHAConnectLuncheon.2.CapitalConnectionisanannualeventdesignedtobringtogetherinvestorswithtechnologycompanies.Thiseventfeaturesstart‐up,early‐stageandexpansion‐stagecompaniesaswellaslater‐stateprivategrowthcompanies.3.TheMid‐AtlanticBioisanannualconferenceforthebioscienceindustrythatattractsnationalandinternationalindustryleaders.Biotechindustryleaderspresenttheirtechnologies,givinginvestorstheabilitytolearnmoreabouttheseadvances.4.OntheLinksGolf:thisannualgolftournamentbringstogetherventurecapitalistswithMAVAmembersforadayofnetworkingonthegreen.5.YoungInvestmentProfessionalsbeganinthe1990sandisdesignedtoprovideopportunitiestoyoungventurecapitaliststhroughnetworking,enhanceddealflow,buildingofco‐investmentrelationships,andeducation.Theprogramhostsavarietyofnetworkingeventsthroughouttheyear,aswellassponsoringcommunityoutreachandprofessionaldevelopmentprojects.Theprogramhasover160membersfrom86venturecapitalfirms.Formoreinformationaboutthisprogramorbecomingamember,call410‐560‐5855ore‐mailKathyO'LaughlinatKathy@mava.orgSpringboardEnterprisesSpringboardEnterprisesisanorganizationdesignedtofosterwomenbusinessentrepreneursbysupportingemergingcompaniesledbywomen.Itdescribesitselfasa"go‐toorganization"toobtaininformationandsupportforwomen‐ledemergingcompanies.Thissupportisintendedtoaccelerateaccesstoequitymarketsforwomen‐ledcompaniesbyofferingworkshopsandseminars,membershipprograms,education,coaching,connectionswithinvestors,forums,andaweb‐basedlearningcenter.

Page 9: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

9

TermsofUse/Disclaimeronpage77

Programs:1.VentureForumsaredesignedtofeaturewomen‐ledemergingbusinessesinfrontofventurecapitalists.2.Educationalprogramsareofferedtoprovideinformationregardingtheequitymarketsandbuildinganewcompany.3.TheLearningCenterisanonlinesitedesignedtoprovidewomenentrepreneurswitha"virtualbootcamp"regardingtheequityraisingprocess.Thesitecontainsresourcesdesignedtohelpwomenbetterunderstandtheprocessofobtainingfinancingforemergingcompanies.Thesitecontainstutorialsonfundamentalsoftheequitymarket,creatingapitch,preparingabusinessplan,andothertools,resourcesandvideos.SpringboardEnterprises:Fosterswomenbusinessentrepreneurs.MARYLANDFINANCINGPROGRAMSThestateofMarylandhas,amongothers,thefollowingstatesponsoredfinancingprogramsforentrepreneurstopossiblyaccess:[edit]MarylandSmallBusinessDevelopmentFinancingAuthority(MSBDFA)MSBDFAisanagencyoftheMarylandDepartmentofEconomicandBusinessDevelopment(DBED)Websitehttp://www.choosemaryland.org/Pages/default.aspx.Thereareprivatecompaniesthatparticipateaswell,suchasMeridianManagementGroup,Inc.TheMSBDFAprogramoffersthefollowingfourfinancialassistanceprograms:ContractFinancingProgram(CFP)a.EligibilityCriteriaAtleastfifty‐onepercentofthecompanymustbeownedbysociallyoreconomicallydisadvantagedpersons,whicharedefinedaspersons,who:(1)aremember(s)ofagrouphistoricallydeprivedofaccesstonormalfinancialresources;(2)haveanidentifiablephysicalhandicapwhichlimitstheirabilitytoobtainfinancing;and(3)areotherwiseimpededfromobtainingfinancingbecauseofsocialoreconomicfactors.Sinceinceptionin1978throughJune30,2008,276transactionsweresettledfortotalof$40.6million,themajorityofwhichwerethroughdirectloans.b.PermittedUseofProceedsFundsobtainedthroughtheCFPmaybeusedeitherforworkingcapitaltocompleteanexistinggovernmentorpublicutilitycontractortoacquireequipmentofmachinerytocompletesuchcontract.Fundingmayalsobeapprovedpendingreceiptofsuchacontract,althoughdraw‐downoffundswillnotbepermitteduntilthecontracthasbeenawarded.c.MSBDFAFinancialAssistanceundertheCFP(1)DirectLoans(a)MSBDFAmaylenddirectlyupto$2,000,000.(b)Themaximuminterestrateapplicabletosuchloansisafloatingprimerateplustwopercent,butnottoexceedfifteenpercent.(c)ThetermofMSBDFAdirectloansisthelongerofeitheroneyearorthetermofthecontract.(2)LoanGuaranteesMSBDFAwillguarantyuptoninetypercentofthecommercialloan(providedthattheguaranteedamountmaynotexceed($2,000,000).(a)Themaximuminterestrateforaguaranteedloanisafloatingprimerateplustwopercent.

Page 10: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

10

TermsofUse/Disclaimeronpage77

(b)ThetermoftheMSBDFAguarantyisthelongerofoneyearorthetermofthecontract.GuarantyProgram(GP)a.EligibilityCriteria(1)Atleastseventypercentofthecompanymustbeownedbysociallyandeconomicallydisadvantagedpersonsorhandicappedpersons.(2)Preferably,theprincipalwillhavehadatleasteighteenconsecutivemonthsofexperienceinthetradeorbusinessforwhichitisseekingMSBDFAfinancialassistance.b.UseofProceedsFundsobtainedthroughtheGPcanbeusedforworkingcapitalpurposes,toacquireorinstallequipmentandmachinery,leaseholdimprovements,andacquisitionofrealestateorcorporatestockortherefinanceofdebt.Performance‐AsofJune30,2008,279financingswereguaranteedundertheCFPtotaling$51.9millionsincetheprogrambeganin1984.(Notlimitedsolelytogovernmentcontractsorutilityagreements.)c.MSBDFAFinancialAssistanceundertheGPForLoansBetween$5,000and$2,000,000(1)LoanGuarantees(a)MSBDFAmayguarantyuptoeightypercentofaqualifyingcompany’scommercialloan(providedthatMSBDFA’sexposuredoesnotexceed$2,000,000).(b)Themaximuminterestrateforaguaranteedloanistheprimerateplustwopercent.(c)Themaximumtermforaguaranteedloanistenyears.(2)InterestRateSubsidies(a)MSBDFAcanalsosubsidizefourpercentagepointsoftheinterestratebeingchargedbythefinancialinstitution.(b)Subsidyissubjecttoannualreview.(c)Termsofrepaymentofsubsidyarenegotiateddirectlywithborrower.(d)Ispayablequarterly.EquityParticipatingInvestmentProgram(EPIP)EPIPisintendedtoenhancebusinessownershipthroughuseofloan,loanguaranteesorequityinvestment.EPIPhasthefollowingfourcomponentsandassociatedrequirements(Sinceinceptionin1987throughJune30,2008,thisprogramhasprovided83loansorequityinvestmentsofapproximately$14.0million.Intheearlydaysoftheprogram,amajorityoftheparticipantswerefranchisebusinesses.Withinthelasttenyears,thefocusoftheprogramistoprovidemoreassistancetotechnologybasedbusinessesandtomoretraditionalindustrysectors.):(1)EPIPFranchiseComponent(a)EligibilityCriteria(i)Thecompanymustbeafranchise.(ii)Atleastseventypercentofthecompanymustbeownedbysociallyandeconomicallydisadvantagedpersonsorhandicappedpersons.(iii)Thelesserofatleasttenpercentofthecompany’scapitalcontributionsmusthavebeenmadebyitsowneror$250,000.

Page 11: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

11

TermsofUse/Disclaimeronpage77

(b)PermittedUseofProceedsFundsobtainedthroughtheEPIPcanbeusedtofinancepurchasesofrealproperty,equipmentorexistingfranchises;forleaseholdimprovements;topayfranchiseandtrainingfees;forworkingcapitalpurposesorexpandexistingsmallbusiness.(c)MSBDFAPurchasesofSecurities(i)MSBDFAprovidesfinancialassistancetofranchiseesorfranchisorsundertheEPIPbypurchasingtheirdebtorequitysecurities.MSBDFApurchasesoffranchiseesecuritiesmaynotexceedthelesserorforty‐fivepercentofitsinitialprojectcostor$1,000,000.MSBDFA’sinvestmentsarestructuredsothattheyarerecapturedwithinsevenyears.(ii)IndependentBusinessAppraisalmayberequired.(2)EPIPBusinessAcquisitionComponent(a)EligibilityCriteria(i)Atleastfifty‐onepercentofthecompanymustbeownedbysociallyandeconomicallydisadvantagedpersonsorhandicappedpersons.(ii)Thebusinessbeingacquiredmustbeatleastfiveyearsoldandmusthavebeenprofitabletwoofthelastthreeyears.(iii)Ifacquiringabusiness,theprincipalsoftheenterpriseapplyingmusthaveanequityinvestmentequaltofivepercenttotalacquisitioncostand3yearsormoreofsuccess.(b)PermittedUseofProceeds(i)Purchaseofmachinery,equipment,furniture,fixtures,inventoryorrealestate;leaseholdimprovements;workingcapital;(ii)construction/renovation;orpurchaseofexistingprofitablebusiness.(c)FinancialAssistanceTerms(i)Equityinvestmentsorloansupto25percentofinitialprojectcostor$2,000,000,whicheverisless.(ii)Investmentshavealoandurationofnotmorethansevenyears.Loansaretypicallyrepaidwithinthe4thto7thyear.(iii)Theownermustcontributeatleast$25,000or5percentofthecompany’stotalcapitalcontributions,whicheverisgreater.(3)TechnologyInvestment(a)EligibilityCriteria(i)Thecompanymustbeatechnology‐basedbusinesswithaproventechnologicalproductorservice.(ii)Atleastseventypercentofthecompanymustbeownedbysociallyandeconomicallydisadvantagedpersonsorhandicappedpersons.(b)PermittedUseofProceedsCompaniescanusetheproceedstopurchaseofmachinery,equipment,furniture,fixtures,inventoryorrealestate;leaseholdimprovements;workingcapital;construction/renovation,toacquireexistingprofitablebusinessortodevelopatechnologybasedbusiness.(c)FinancialAssistantTerms(i)MSBDFA’sequityinvestmentinatechnology‐basedbusinessmaynotexceed$2,000,000.(ii)Investmentdurationofnomorethantenyears.

Page 12: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

12

TermsofUse/Disclaimeronpage77

(4)OtherSmallBusinessSamecriteriaasbusinessacquisitionsbutlimitedforpurposesofstartingorexpandingabusinessentity.SuretyBondProgram(SBP)a.EligibilityCriteria(1)Thecompanymustbea“smallbusiness.”A“smallbusiness”isgenerallydefinedasonethat:(a)employsfewerthanfiftypersonsonafull‐timebasis;OR(b)haslessthan$10,000,000ingrossannualsales;and(c)isindependentlyowned;and(d)cannotsubcontractmorethan75%dollarvalueofcontract.b.MSBDFAFinancialAssistanceunderSBP(SpecialNote:UntilSeptember30,2009:Guarantyis90%percentupto$1,350,000andBondsarelimitedto$1,000,000eachduetocashlimitations,theexpectationsaretheSBPprogramwouldlaterincreasesuchlimitationsinaccordancewiththebelowtotheextenttherearefundsavailabletodoso)(1)BondGuaranty(2)UntilSeptember30,2009,theSmallBusinessSuretyBondFundisusedinguarantyrepaymentofuptoninetypercentofasurety’slossesonbid,paymentorperformancebonds(ofupto$5million)issuedtoqualifyingbusinessescontractingwithagovernmentagency(state,federalorlocal)orapublicutility.(3)Premiumsandfeesaredeterminedattimeofapplication,however,thebondpremiumsaretypicallyintherangeof2%to3%.(4)Theguaranteemaynotexceedthetermofthecontractandapplicablewarrantyperiodforlatentdefects.(5)Canestablishasuretybondrevolvinglinetodirectlyissueorguarantymultiplebondstoaprinciplewithinpre‐approvedterms,conditionsandlimitations.c.Performance(1)AsofJune30,3008,84projectssupportedwithbondsissueddirectlyorguaranteedbyMSBDFAforatotalofapproximately$38.9million.Only3claimstotalinglessthan$300,000havebeenpaid.(2)HouseBill169,whichpassedin2006,increasedmaximumamountof$5million,buttheprogramexpectstobeabletoincreaseto$2millioninfutureyearsasfundsarepermitted.(3)Bonds(a)MSBDFAmayissueandperformbid,performanceandpaymentbondsasasuretyforbusinessescontractingwithagovernmentagencyorpublicutility.(b)Suchbondsmaynotexceed$5,000,000.(SeeNote–fundsinprogramlimitto$2million)(c)Thebondsmaynotexceedthetermofthecontractandapplicablewarrantyperiodforlatentdefects.MarylandIndustrialDevelopmentFinancingAuthority(MIDFA)MIDFAisprogrammanagedbyDBED.Thewebsiteishttp://www.choosemaryland.org/businessresources/pages/midfa.aspx.Ingeneral,MIDFAinsuresrepaymentofaspecifiedpercentageofprincipalandinterestof

Page 13: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

13

TermsofUse/Disclaimeronpage77

loansmadetoqualifyingMarylandbusinessesbycommerciallenders.TheMarylandGeneralAssemblyestablishedMIDFAtohelpalleviateconditionsofunemploymentinMarylandandtopromotethedevelopmentofabalancedstateeconomythroughfinancialassistancetobothnewandexistingindustryandcommerce.InadditiontotheMIDFA“ConventionalProgram”thatwillbediscussedhere,MIDFAadministersaTax‐ExemptBondProgram,aTaxableBondProgram,aSeafood&AquacultureLoanFund,aLinkedDepositProgramandsupportstheMarylandEnergyFinancingAdministration.TheFundispermitteda5:1leverageratio.Fundcharges1/8of1%annualissuancefeewithrespecttotaxableortax‐exemptbondstocertainmanufacturing,501(c)(3)non‐profitentitiesandcertainsolidwasterecoveryprojects.Otherbondsmayhaveanissuancefeeof½of1%forinsuredtransactions,unlesssuchfeeiswaivedinaqualifieddistressed“OneMaryland”jurisdiction.AsofJune30,2008,theprogramhadparticipatedin818loanstotalingmorethan$2,103,193,475.00.Asofsuchdate,61loanswereactivewithprincipalbalancesofapproximately$465,790,000insuringobligationsof$24,685,883.MIDFAFinancialAssistanceundertheConventionalProgramMIDFAmayinsure(i)uptothelesserofeightpercentoftheprincipalandinterestofaqualifyingcompany’scommercialloanor$2.5million;(ii)uptothelesserof100percentofabond‐financedtransactionor$7.5million;and(iii)uptothelesserof90percentoftheprincipalandinterestofaloanforexport‐relatedtransactionsor$2.5million.Thetypicalprojectrangeis$35,000to$5million;thetypicalMIDFAinsuranceisinthe30‐40%range.MIDFAalsomayinsurethebusiness’paymentofotherborrowingcostssuchasinsurancepremiumsandotherfees.MIDFAworksdirectlywiththebusiness’commerciallendertodeterminethatamountforwhichthelenderrequiresthirdpartyparticipation.UltimatelythescopeofMIDFA’sguarantyisdeterminedbythelender’sneedsandthecollateralofferedassecurityfortheloan.ThenormalmaturityforloansinsuredbyMIDFAis15‐20yearsonrealestate,7‐10yearsonequipment,andoneyearorlessforworkingcapital.EligibilityCriteriaTheoretically,allMarylandbusinessesareeligibleforMIDFAassistance.Inpractice,howeverMIDFAgenerallygivesfinancialassistanceonlyto501(c)(3)organizations,certainmanufacturingfacilitiesandcertainsolidwasteprojects.Retailbusinessesareexcluded,unlessspecificallyapprovedbytheAuthority.Additionallimitationsapplytospecifictransactiontype.Generallyspeaking,MIDFAexpectsapplicantstogenerateemploymentinMaryland.Whileinsurancedollarexposureandjobsguidelinesareused,eachfinancingrequestisanalyzedonitsownmeritsandintermsofitsowncharacteristics.Thecompanymustbecreditworthy.Ingeneral,MIDFAconsidersthedegreeofsuccessassociatedwiththecompany’spastoperationsaswellasitsprospectiveabilitytocreatejobs,generatetaxrevenue,serviceitsdebt,andmeettheneedsofthecommunityinwhichitislocated.ApplicationProcess(a)Anindicationthatthecredithasbeenapprovedbythelender;

Page 14: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

14

TermsofUse/Disclaimeronpage77

(b)Annualfinancialstatements,withaccompanyingnotes,foratleasteachoftheprecedingthreeyears,includingbalancesheets,profitandlossstatements,statementsofsourcesandusesoffunds,reconciliationsofsurplusandstatementsofchangesinfinancialpositioncoveringsuchperiod;(c)Financialprojectionsforthesucceedingthreeyears,includingprojectedcashflowstatements,projectedprofitandlossstatementsandproformabalancesheetsreflectingthenewdebtandanyproposedleaseobligations;(d)AFacilityCostsChecklistreflectingtheestimatedamountofthefinancing,ifany,tobeusedtoconstructfacilitiesforthebusiness;(e)Evidenceoftheage,normalusefullifeandcostormarketvalueofanymachineryorequipmenttobefinancedwiththeproceedsoftheguaranteedloan;and(f)Personalfinancialstatementsoftheindividualapplicant(s)andpersonalguarantor(s).SpecialConditionsMIDFAmayrequiretheapplicanttouseitsbesteffortstomaintainacertain“jobcreationlevel.”(MIDFAisfundamentallycommittedtorelievingconditionsofunemploymentinMaryland.)UseofProceedsFundsobtainedbythebusinessfromanMIDFA‐insuredloanmaybeusedtofinancepurchasesoffixedassets(e.g.,realproperty,machinery,equipment,etc.)aswellastopaycertainsoftcostsandforworkingcapitalpurposes.InterestRatesTheapplicabletypeandrateofinterestwillvarydependinguponthelender’sneeds.TermoftheLoanGuarantyThetermofaMIDFA‐insuredloanwillvarydependinguponthebusiness’expecteduseoftheproceedsfromtheloan.Forexample,loansobtainedtopurchaserealpropertygenerallywillbeinsuredforatermoffromfifteentotwentyyears;loansobtainedtopurchaseequipmentormachinerygenerallywillbeinsuredforatermoffromseventotenyears;loansobtainedforworkingcapitalpurposesgenerallywillbeinsuredonlyforatermofoneyear.MarylandIndustrialPartnerships(MIPs)TheMIPsprogramisacollaborationbetweenqualifyingMarylandcompaniesandthe13institutionsintheUniversitySystemofMarylandforresearchtodevelopcommercialproductsandprocesses.MIPsprovideamatchingservice,knownastheMarylandTechnologyEnterpriseInstitute(MTECH),tohelpapplicantcompaniesfindappropriateresearchfacultywithintheUniversitySystemofMaryland.Projectsarepreparedjointlybythecompanyandtheuniversityresearcher.TheMIPsprogrammatchesthecompanycontributiontotheresearchprojectupto$90,000ayearforstart‐upcompaniesandupto$100,000peryearforothercompanies.MIPsfundingdoesnotgototheparticipatingcompanybutisapplieddirectlytotheresearch.MIPsandMTECHstaffareavailableforconsultationinwritinganapplication.FormoreinformationseeMarylandIndustrialPartnerships(MIPs)Program

Page 15: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

15

TermsofUse/Disclaimeronpage77

WebsiteEligibilityCriteriaa.ThecompanymustbeaMarylandbusiness,meaningthatithasamanufacturing,servicesorresearchanddevelopmentoperationsinMarylandoritmustbeplanningtosetupsuchoperationsinthestatewithintheyearinwhichtheMIPsawardistobereceived.Applicantsmaybeasinglecompany,agroupofcompaniesornon‐profitorganization.b.Eachproposalmustbeco‐authoredbytheapplicantcompanyandafacultymemberfromtheUniversitySysteminMarylandwhowillbeinvolvedintheproject.c.Theproposalsmustaddressinnovativetechnologicalorscientificconcepts.Thesetypicallyfallwithintheareasofengineering,computerscience,physicalsciencesorlifesciences.Fundinga.MatchingrequirementsforeachprojectarebasedonabudgetconsistingofboththecompanyandtheMIPscontributions,withcompaniesbeingexpectedtomakeanadditionalin‐kindcontributionthatincludesthesalaries,materialsandequipmentandothercompany‐budgetedexpensesforthework.(i)Forlargecompanies,definedasfirmshavingmorethan1,000employees,theminimumcashandin‐kindcontributionsare50%and25%oftheprojectbudget.(ii)Formediumcompanies,definedasfirmshaving100to1,000employees,theminimumcashandin‐kindcontributionsare50%and25%oftheprojectbudget.(iii)Forsmallcompanies,definedasfirmshavefewerthan100employees,theminimumcashandin‐kindcontributionsare35%and30%oftheprojectbudget.(iv)Forstart‐upcompanies‐‐definedasprivatelyheldfirmsinaproductdevelopmentmodethathavebeeninbusinessfouryearsorlessandhaveannualsalesof$1millionorless‐‐theminimumcashandin‐kindcontributionsare10%and35%oftheprojectbudget.Asanalternativetocashandin‐kindcontributions,anequitycontributionispossibleforastart‐upcompany.b.One‐year(one‐phase)andtwo‐year(two‐phase)projectsareeligible.Inexceptionalcasesathirdyearorphasemaybeconsidered.Ifatwo‐yearprojectisselected,thestatusisreviewedattheendofthefirstyear.Ifsatisfactory,thesecondyearoftheprojectwillproceed.c.EachapplicationisreviewedfirstbyMIPsstaff,thenbyexpertsintheapplicablesubjectarea,thenbybusinessexperts,finallybyanevaluationboard.Criteriaincludethelikelihoodof:(i)successfromthetechnicalstandpoint;(ii)jobcreationinMaryland;(iii)improvementofthecompany’scompetitiveposition;and(iv)helptotheMarylandeconomyinsomeotherway.Bonuspointsintheevaluationareawardedtocompaniesthatproposetoexceedtheminimumcashandin‐kindcontributions.Otherfactorsintheevaluationincludethelevelofthecompany’scommitment,contributiontothegoalsoftheuniversity,andthepossibilityofinteractionbetweenthecompanyandtheuniversity,suchasstudentinternships.ApplicationProcessThescheduleofkeydatesintheapplicationprocess,basedonthecalendaryear2008isasfollows:a.ApplicationpacketsavailableAugust1;b.ProposalsdueatMIPsofficebyOctober

Page 16: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

16

TermsofUse/Disclaimeronpage77

15;c.EvaluationboardselectionscompletedDecember16;d.ExecutedagreementsreturnedbyMIPsbyJanuary16;ande.ProjectcommencementbyFebruary1.MarylandIndustrialPartnerships(MIPS)Program;UniversityofMarylandMIPSProgramDepartmentofBusiness&EconomicDevelopmentInvestmentProgramsTheMarylandVentureFundisaventurecapitalinvestmentfundofthestateofMarylandthatinvestsdirectlyinlifesciencesandtechnologycompaniesandindirectlyinventurecapitalfunds,primarilythroughtwoprograms:theChallengeInvestmentProgramandtheEnterpriseInvestmentFundProgram.FormoreinformationvisitMarylandVentureFundChallengeInvestmentProgramTheChallengeInvestmentPrograminvestsinemergingcompaniestocoverpartoftheinitialcostsofbringingnewproductstomarket.Theinitialinvestmentsare$50,000to$100,000,withfurtherincrementalinvestmentsuptoamaximumof$150,000.Theinvestmentsarestructuredasconvertibledebtwitharoyaltypayment.Toqualify,abusinessmustmeetthefollowingcriteria:(1)Nomorethan25employees;(2)Annualsalesoflessthan$1million;(3)Minimum1:1co‐investormatchbyotherinvestors,whichmayincludefamilyandfriends;(4)High‐techcompanywithprincipalplaceofbusinessinMaryland;(5)RemaininMarylandforatleastthreeyears;and(6)Positionedforadditionalventurecapitalinvestment.EnterpriseInvestmentFundProgramTheEnterpriseInvestmentFundPrograminvestsinemergingtechnologycompanies,typicallyinthefirstroundofinstitutionalfinancing,withthegoalofhelpingsuchcompaniesmovetothenextstageofdevelopment.Investmentamountsrangefrom$150,000to$500,000.Theprograminvestmenttakestheformofanequitypositioninthecompany.Toqualify,businessesmustmeetthefollowingcriteria:a.Operateinatechnologyindustry,suchaslifesciences(e.g.therapeutics,medicaldevicesanddiagnostics)andinformationtechnology(e.g.software,communicationsandITsecurity);b.MaintainprincipalplaceofbusinessinMarylandforatleastfiveyears;andc.Minimum3:1matchbyasophisticatedinvestor;ApplicationsToapplytoeithertheChallengeInvestmentProgramortheEnterpriseInvestmentFundProgram,acompanymustmeettheabove‐describedeligibilitycriteriaasapplicableandsubmitabusinessplantotheMarylandVentureFund.Eachapplicationmustincludethecompanynameandaddress,contactnameandtelephonenumberanddetailedbackgroundonthecompany’sfounders.CountyandLocalSupportBaltimoreCity‐BaltimoreDevelopmentCorporation(BDC)BDCisa501(c)(3)corporationcontractedwiththeCityofBaltimoretoprovideeconomicdevelopmentservicesandtoactasaliaisonbetweenbusinessownersand

Page 17: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

17

TermsofUse/Disclaimeronpage77

Cityagencies.Formoreinformationseehttp://www.baltimoredevelopment.com/a.BDCLoanPrograms‐RevolvingLoan/WorkingCapitalLoanFunds(RLF/WCandMILA/RLF)Availabletofor‐profitbusinessesandmaybeusedforacquisitionandimprovementofland,facilitiesandequipment(includingrenovation,demolition,siteprepandnewconstruction).Thefundsmayalsobeusedforworkingcapitalwithrestrictions.Maynotbeusedforrelocationfromasurplusareaorinvestmentactivities.ApplicantswithacurrentoutstandingRLFloan,ortoapplicantswhohavereceivedaccumulatedassistancefromtheRLFof$150,000withinthepreviousfive‐yearperiodarenoteligible.Otherineligiblebusinessesinclude:financialinstitutions,consultingfirms,realestatecompanies,not‐for‐profitbusinesses,developers,orunregulatedmedia.Loanlimitsare$500,000or30‐35%ofprojectcosts.ApprovalbyBDC’sLoanCommitteeandbytheCity’sBoardofEstimatesrequired(andinsomeinstances,approvalbytheCity’sBoardofFinance).b.CityGeneralObligationBondsAvailabletofor‐profitbusinessesandsomenon‐profitsandaregenerallyrestrictedtoguaranteesandcapitalprojects–“brickandmortar”improvements.Refinancingisnotpermitted.Maynotbeusedforrelocationfromasurplusareaorinvestmentactivities.ApplicantswithacurrentoutstandingRLFloanortoapplicantswhohavereceivedaccumulatedassistancefromtheRLFof$150,000withinthepreviousfive‐yearperiodarenoteligible.Otherineligiblebusinessesinclude:consultingfirms,unregulatedmedia,realestatecompanies,investmentorspeculativeactivities,speculativedevelopers,andretail.EligibleprojectsandloanlimitsaredeterminedbyBDCandmaynotexceed30‐35%ofprojectcosts(subjecttoavailabilityoffunds,numberofjobscreated,andindustrytype).ApprovalbyBDC’sLoanCommitteeandbytheCity’sBoardofEstimatesrequired(andinsomeinstances,approvalbytheCity’sBoardofFinance).c.BDCSmallBusinessResourceCenter(SBRC)TheSBRChasalargelibraryandprovidesfreeresourcestoeducateownersinstarting,planning,financingandmarketinganewbusiness.Forhoursofoperationandadditionalprogram,seewebsitehttp://www.baltimoredevelopment.com/small‐business‐resource‐center‐0AnneArundelCounty–EconomicDevelopmentCorporationAnneArundelhasanEconomicdevelopmentagencythatprovidesvariousprogramsforlocalcompanies.Seewebsitehttp://www.aaedc.org/TheAnneArundelCountySmallBusinessResourceCenterprovidesservicesthatarefreeofcharge,confidential,andthataddresstheneedsandchallengesoftoday’sbusinessenvironment.TheSBRClibraryisopentothepublicMondaythroughFridayandCounselingservicescanbearrangedbyvisitingtheCenter.Formoreinformation,seehttp://www.aaedc.org/small_business_resource_center.htmlAnneArundelCountybusinessfinanceofficehasvariousprogramsaswell.Seewebsitehttp://www.aaedc.org/business_financing.htmlAnneArundelCountyLoanPrograms(1)ArundelBusinessLoanFundisaprogramoftheAnneArundelEconomic

Page 18: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

18

TermsofUse/Disclaimeronpage77

DevelopmentCorporation,whichprovidesloanswithamaximumof$300,000tonewandexpandingbusinessesoperatinginAnneArundelCounty.Loanproceedsmaybeusedforworkingcapital,equipment,furniture,andleaseholdimprovements.SBAlendingregulationsapplysincetheloansinvolveSBAguarantees.(2)BusinessCorridorInvestmentLoanProgramhasbeenestablishedtoencourageeconomicactivityinfourpilotprojectareasinAnneArundelCountyandtheCityofAnnapolisRevitalizationDistricts.TheBCIPoffersqualifiedbusinessownerszerointerestloansofupto$35,000forimprovementstotheexteriorandinterioroftheirbusiness.Thefourpilotprogramareasinclude:Route2CorridorinBrooklynPark,theRoute2CorridorandGlenBurnieTownCenterinGlenBurnie,theSunValley/MountainRoadCorridorsinPasadena,andtheWestStreetRevitalizationDistrictintheCityofAnnapolis.Eligibleimprovementsinclude:(a)Renovationofbuildingexteriors,(b)Siteimprovementssuchaslandscaping,signage,orlighting,and(c)Interiorimprovementssuchaspainting,flooring,plumbing,orelectricity.BaltimoreCounty–DepartmentofEconomicDevelopmentBaltimoreCountyhasaDepartmentofEconomicDevelopmentthatprovidesvariousprogramsforlocalcompanies.Formoreinformationseehttp://www.baltimorecountymd.gov/Agencies/economicdev/index.htmlBaltimoreCountyhasaSmallBusinessResourceCenterthatprovidesvariousservicestolocalcompanies.TheBaltimoreCountySmallBusinessResourceCenterisoperatedthroughapartnershipbetweentheBaltimoreCountyDepartmentofEconomicDevelopmentandtheBaltimoreCountyChamberofCommerceandoffersnewandexistingbusinessassistancewithtechnical,financialandmarketingissuesfreeofcharge.http://www.baltimorecountymd.gov/Agencies/economicdev/edd_smallbus.htmlTheassistanceincludes:FeasibilityStudies,DemographicStudies,StrategicPlanning,BusinessStructuringNeeds,Assessments,BusinessValuations,MarketAnalysis/Research/Planning,BusinessPlanDevelopment,LoanPackageAssistance,CertificationProcess&Procurement,IntellectualPropertyandFundingPrograms.Formoreinformationseebccc@baltcountycc.comBaltimoreCountyhasafinanceofficewhichhelpslocalcompanies.SeeContactforBaltimoreCountyfinancingprogramsathttp://www.baltimorecountymd.gov/Contact/economicdevelopmentLoanPrograms(1)BuildingInvestmentLoans‐provideinterest‐freeloansforexteriorimprovementssuchasawnings,landscaping,signs,andparkingforbusinessesinCommercialRevitalizationDistricts.Formoreinformation:http://www.baltimorecountymd.gov/Agencies/economicdev/Finance/edd_fin_bilp.html(2)SmallBusinessLoanPartnership‐Thisfundprovidesrealestateandfixed‐assetloansthroughapartnershipbetweenBaltimoreCountyandthearea'sleadingfinancialinstitutions.Formoreinformation:http://www.baltimorecountymd.gov/Agencies/economicdev/Finance/edd_smallbusloadfund.html

Page 19: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

19

TermsofUse/Disclaimeronpage77

(3)RevitalizationAdvantage‐offers¼percentdiscountsoffstandardinterestratestoqualifyingbusinessestorefurbishordeveloppropertyorfinanceequipmentintheCounty's13CommercialRevitalizationDistricts.Formoreinformation:http://www.baltimorecountymd.gov/Agencies/economicdev/Finance/edd_fin_inst_comrev_advntg.html(4)BusinessGrowthLoans‐providedirectloansorloanguaranteestonewandexpandingindustrialandcommercialbusinesses.Maximumloanamountis$250,000.Fundsmaybeusedtofinancetheacquisitionandimprovementofland,buildings,plantandequipmentandincludesnewconstructionorfacilityexpansion.(5)AdvancedTechnologyLoanFundDirectloans,withtheparticipationofotherlendingandequitysources,forsmalltechnologyand/ordefenserelatedbusinesses.Maximumloanamountisthelesserof$100,000or50percentoftheproject'seligiblecosts.Fundsmaybeusedtofinancetheacquisitionandimprovementofland,buildings,plantandequipment.Thisincludesnewconstructionorfacilityexpansion.(6)TaxExemptBondsTax‐exemptbondfinancingisavailabletomanufacturersand501‐C3/non‐profitorganizations.Bondproceedsmaybeusedtofinancetheacquisitionandimprovementofland,buildings,plantandequipment,includingnewconstructionorfacilityexpansion.Financingisavailablefrom$1,000,000toamaximumof$20,000,000.IRB'sarealsoavailableforpollutioncontrolandwastetreatmentfacilityconstructionorrelatedequipmentpurchases.CarrollCountyDepartmentofEconomicDevelopmentCarrollCountyhasaDepartmentofEconomicDevelopmentthatprovidesservicestolocalcompanies.Seehttp://www.carrollbiz.org/index.phpCarrollCountyhasSmallBusinessDevelopmentCenterProvidesavarietyofmanagementandtechnicalassistance,confidentialbusinessconsultingservicesandtrainingprogramstohelpdevelopandrefinebusinessplans,solveproblems,findsourcesofcapitalanddevelopstrategiestosupportgrowthandprofitability.Seeformoreinformationhttp://www.carrollbiz.org/sbdc/aboutus.htmlCarrollCountyLoanPrograms(1)CarrollCountyDevelopmentCorporation‐CCDCisasourceofinvestmentanddebtfinancingtosupportlocalsmallbusinessandeconomicgrowthintheCarrollCountyarea.ThegoaloftheCCDCistopromote,developandimprovetheeconomicconditionsofthepeopleinCarrollCountythroughloans,investmentsandotherbusinesstransactionssupportingsmallbusinesses.Formoreinformation,pleasecontacthttp://www.carrollbiz.org/index.php(2)IndustrialRevenueBonds‐CarrollCountycanauthorizetheuseofanIRBtohelpfundaparticularproject.TaxexemptIRB'scanbeofferedtomanufacturingorotherdevelopmentprojectsmeetingeligibilitycriteria.EligibleIRBprojectscoststypicallybeginatonemilliondollars.Fundscanbeusedforland,machineryandbuildingconstruction/renovation.Interestratesvaryandtheuseofabondcounselisnecessary.Atnocost,CarrollCountywillpreparethelegalresolutionauthorizingtheprojectforanIRBandfacilitateitspresentationtotheappropriatebody.(3)EconomicDevelopmentTrustFund‐TheDepartmenthasatrustfundavailabletohelpfundprojectspecificcosts.Wheneligible,thedepartmentmayoffergrantsorlow‐interestloansforavarietyofneeds.

Page 20: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

20

TermsofUse/Disclaimeronpage77

(d)MillerEntrepreneurialInstitute–theMillerEntrepreneurialInstituteisaonestopresourceforsmallbusinessesandentrepreneursseekingtraining,peerrelationshipsandstate‐of‐the‐arttechnology.Theinstituteoffersalargeconferenceroom,computerclassroom,resourcelibraryandtrainingfacilitywithSmartClassroomcapability(laptopguidedoverheadprojectionsystem).TheMillerEntrepreneurialInstituteoffersclassesaspartoftheSmallBusinessTrainingNetworkofCarrollCounty.Fourpartnerscomingtogethertoservebusinessneeds‐MillerEntrepreneurialInstitute,CarrollCountyDepartmentofEconomicDevelopment,SmallBusinessDevelopmentCenter,andStartUpCarrollallprovideadviseandservicestohelpsmallbusinessesgrow.Pleaseseehttp://www.carrolltraining.com/small_business_services.aspformoreinformation.CecilCounty‐OfficeofEconomicDevelopmentCecilCountyhasanOfficeofEconomicDevelopmentthatprovidesservices.Formoreinformationseehttp://www.ccgov.org/dept_ecdev/CecilCounty'sRevolvingLoanFundProvidesfundstoqualifiedborrowersforthepurchaseofland,buildingsandequipment,inaccordancewiththeeligibilityrequirementsoftheprogram.IntroductiontoappropriateprogramsoftheSmallBusinessAdministrationcanworkinconjunctionwiththelocalrevolvingloanfundforqualifiedborrowers.HarfordCounty‐OfficeofEconomicDevelopmentHarfordCountyhasOfficeofEconomicDevelopmentthatprovidevariousservicestolocalcompanies.Formoreinformationseehttp://www.harfordcountymd.gov/economic_development/HarfordCountyhasaSmallBusinessDevelopmentCenterthatprovidesassistancetolocalcompanies.Formoreinformationseehttp://www.harford.edu/sbdc/index.aspLoanPrograms(1)EconomicDevelopmentOpportunityFund‐Stimulatesincreasedfinancingfornewequipmentandoperationsbycomplementingtraditionallenders,StateorFederalfundingprograms.LocalandFederalFundsusedtoencourageinvestment,retentionandjobcreationforworkingcapital,equipmentpurchases,landorbuildingimprovementsandpurchases.MaximumLoanamountis$100,000.Application:http://www.harfordbusiness.org/download/OppFund.PDF(2)RevolvingLoanFund‐Providesfundstocreditworthybusinessesunabletoobtainfinancingthroughtraditionalsourcesduetolimitedequity,collateralorcashflow.AnalternativeincentiveprovidedbytheCountyandaconsortiumofeightfinancialinstitutionstoattract,expandandretainsmallbusinesses.1.3MillionLoanPool.Availabletofor‐profitbusinessesincludingmanufacturers,wholesalers,retailers,serviceandagriculturalcompanies.Formoreinformation,contact:http://www.harfordcountymd.gov/economic_development/LoanAmountrangefrom$10,000to$100,000.(3)EnterpriseLoanFund‐PartnershipbetweenM&TBankoffersa1/4%discountoffstandardinterestratestoqualifyingbusinessestorefurbishordevelopcommercialproperty.ProgramsupportsHarfordCounty'scommitmenttorevitalizingolderindustrialareasofthecountyandsupportingresidentbusinessretentionandexpansion.AvailabletobusinesseslocatedalongHarfordCounty's

Page 21: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

21

TermsofUse/Disclaimeronpage77

Route40Corridor,includingtheEdgewood/JoppaandGreaterAberdeen/HavredeGraceEnterpriseZones.M&TBankloanamountsrangefrom$50,000to$3,000,000.RevitalizationAdvantageloanscanbeleveragedwithotherHarfordCountyLoanFundstomaximizesavings.Countyloansupto$100,000maybeavailable.(4)CommunityBlockDevelopmentGrantforEconomicDevelopment‐Fostersdevelopmentintargetedareas.Includesfundingfor:WaterandSewerLinestoindustrialsites,ExtensionofRailServicetoindustrialsites,ConstructionandRenovationofnewandexpandingbusinesses.(5)IndustrialRevenueBondsforManufacturersand501(c)(3)Organizations‐Taxexemptfinancingfortheacquisitionofland,buildings,andequipmentIRBBondsaresoldtolendinginstitutions,investorsandthepublicIRBPurchaserdeterminesfixedorfloatinginterestrateFederallawlimitstheterms,amountandusesoffinancing.HowardCounty‐EconomicDevelopmentAuthorityHowardCountyhasanEconomicDevelopmentAuthoritythatprovidesvariousservicestolocalcompanies.Formoreinformationseehttp://www.hceda.org/HowardCountyhasBusinessResourceCenterthatone‐on‐onecounselinginallaspectsofbusinessmanagement,fromstartup,businessplanningandfinancing,tomarketing,networking,andstrategicplanningforbusinessgrowth.BusinessResourceCenterclientscanfindprofessionalassistanceinareasasvariedasgovernmentprocurement,certifications,businessplanningandinternationaltrade.Accesstosophisticatedbusinessresources,referencematerials,trainingseminarsandworkshopsisalsoavailable.Formoreinformationseehttp://www.hceda.org/CBTD/brc.aspxTheBusinessResourceCenterprovidesthefollowingongoingentrepreneurialsupport:(a)Referralstothesmallbusinessnetworkinggroup,whichprovideentrepreneurialsupport.(b)TheBusinessFundingAdvisoryOfficeisstaffedbyprofessionalswhoadviseentrepreneursoffundingopportunitiesavailabletomeettheirneeds.(c)TheFranchiseAdvisoryOfficeoffersadvice,guidance,andseminarsonthebusinessaspectsoffranchising.(d)TheInternationalTradeCenterdevelopsrecognitionandawarenessofinternationaltradeopportunitiesforsmallandmediumsizeHowardCountycompaniesandassiststhemindevelopingandincreasingtheirinternationalbusinessopportunitiesthroughcounseling,workshops,andreferralstostate/federalagencies.(e)TheGovernmentContractingInstitute(GCI)offersbusinessestheopportunitytoreceiveinstructionfromleadersinthegovernmentcontractingmarketontopicssuchasgettingregisteredasacontractor,certification,businessdevelopment,marketresearch,proposalwriting,oralpresentations,accountingandlegalissues,projectandcontractmanagementandsecurityclearances.(f)TheVirtualOfficeisaprogramforsmallandhome‐basedbusinessesinHowardCountythatprovidesabusinessaddressforreceiptofmail,accesstoconferenceandmeetingfacilitiesequippedwithaudio/visualequipment/internetaccessandabusinesslibrary.LoanPrograms:

Page 22: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

22

TermsofUse/Disclaimeronpage77

(1)EconomicDevelopmentIncentivesFund‐HowardCountyhascreatedanEconomicDevelopmentlncentiveFundwhichisfundedbyanissuerfeeontaxexemptfinancing.Moniesfromthisfundareusedasamatchingrequirementtoobtainstatefunding.(2)JimRouseEntrepreneurialFund‐JREFwasestablishedtohelpfosterthedevelopmentofnewandgrowingbusinessesthrougheducation,mentoringandfinancing.Loansofupto$100,000aremadetosmallorstart‐upbusinessesforexpansionorstart‐upcosts.(3)USRoute1andUSRoute40RevitalizationLoanPrograms‐TheRoute1andRoute40loanprogramswereestablishedtoencouragebusinessestoimprovebuildingandsiteconditionsalongbothcorridors.Theprogramsofferatorbelowprimeratefinancingthroughparticipatingbanks.CenterforBusinessandTechnologyDevelopment‐FoundedinMay,2000,isdedicatedtothediscovery,stimulation,nurturing,growthandsuccessofentrepreneurshipinHowardCounty.TheCenterforBusinessandTechnologyhasgainedareputationforcreatinginnovativeprogramstofosterentrepreneurshipinthegreaterWashington/Baltimoreregion.Formoreinformationseehttp://www.hceda.org/CBTD/index.aspxj‐refj‐refisaprivate,not‐for‐profitorganizationdedicatedtofosteringtheentrepreneurialspiritinHowardCounty,Maryland.j‐refisasmallbusinessfinancierthatassistssmallandemergingbusinesseslocatedinHowardCounty.Itprovidesfinancingandotherneededformsofmanagementandeducationassistancetomaximizebusinessgrowth.Formoreinformationseehttp://www.jref.org.Inadditiontootherservices,j‐refprovidesthefollowingservices:(a)BusinessServices:(i)Businessloansupto$250,000.(ii)Businessadvicetomeetthespecificneedsoftheentrepreneur.(iii)Businessandstrategicplanreviewandbusinesseducation(b)RealEstateLoansProgram:(i)BusinessandrealestatemustbelocatedinHowardCounty(ii)Loansupto$250,000(iii)NoPrepaymentPenalty(iv)FloatingRates(v)75%ormoreOwnerOccupied(vi)CashDownPaymentaslowas5%OtherCountyEconomicDevelopmentOfficesAlleganyCountyEconomicDevelopment‐formoreinformationseehttp://www.alleganyworks.org.CalvertCountyDepartmentofEconomicDevelopmentformoreinformationseehttp://www.ecalvert.com/index.asp.CarolineEconomicDevelopmentCorporationformoreinformationseehttp://www.carolinebusiness.com/.CecilCountyOfficeofEconomicDevelopmentformoreinformationseehttp://www.ccgov.org/dept_ecdev/.

Page 23: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

23

TermsofUse/Disclaimeronpage77

CharlesCountyEconomicDevelopmentDepartmentformoreinformationseehttp://www.meetcharlescounty.com/apps/econweb/public/listProperties.jsp.DorchesterCountyEconomicDevelopmentOfficeformoreinformationseehttp://www.choosedorchester.org/.FrederickCountyOfficeofEconomicDevelopmentformoreinformationseehttp://www.discoverfrederickmd.com/.GarrettCountyEconomicDevelopmentDepartmentformoreinformationseehttp://www.gcedonline.com/.KentCountyEconomicDevelopmentOfficeformoreinformationseehttp://www.kentcounty.com/bus/MontgomeryCountyDepartmentofEconomicDevelopmentformoreinformationseehttp://www.montgomerycountymd.gov/dedtmpl.asp?url=/content/ded/index.asp.PrinceGeorge’sCountyEconomicDevelopmentCorporationformoreinformationseehttp://www.pgcedc.com/.QueenAnne’sCountyDepartmentofEconomicDevelopmentandAgricultureformoreinformationseehttp://www.qac.org/default.aspx?pageid=66&template=3&toplevel=34.SomersetCountyEconomicDevelopmentCommissionformoreinformationseehttp://www.somersetcountyedc.org/.St.Mary’sCountyDepartmentofEconomicandCommunityDevelopmentformoreinformationseehttp://www.co.saint‐marys.md.us/decd/.TalbotCountyOfficeofEconomicDevelopmentformoreinformationseehttp://www.talbotcountymd.gov/index.php?page=Economic_Development.Hagerstown‐WashingtonCountyEconomicDevelopmentCommissionformoreinformationseehttp://www.hagerstownedc.org/.Salisbury‐WicomicoEconomicDevelopment,Inc.formoreinformationseehttp://www.swed.org/.WorcesterCountyDepartmentofEconomicDevelopmentformoreinformationseehttp://www.co.worcester.md.us/econ/econindex.htm.MarylandAssistancetoAgriculturalBusinessMarylandAgriculturalandResource‐BasedIndustryDevelopmentCorp(MARBIDCO)MARBIDCOisaMarylandstatesponsoreddevelopmententityformedforthepurposeofdeliveringenhancedfinancingopportunitiestotheagriculture,forestryandseafoodindustriesandtoassistinstateandlocal,rurallandconservationagencieswiththefarmlandandforestlandpreservationefforts.Formoreinformation,pleaseseehttp://www.marbidco.org.a.MARBIDCOLoanProgramsMARBIDCOoffersthreedirectloanprogramsandanequityfinancingprogram.(1)MarylandResource‐BasedIndustryFinancingFundofferslow‐interestloanstopurchaselandandcapitalequipmentforfoodandfiberproductionandprocessingactivities.(2)TheRuralBusinessWorkingCapitalLoanFundoffersloansforworkingcapitalandequipmentpurchasesat1%belowtheprevailingprimerate;whiletheForestryEquipmentandWorkingCapitalLoanFundoffersflexibility‐pricedloansto

Page 24: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

24

TermsofUse/Disclaimeronpage77

Maryland’sforestproductsbusinessesforworkingcapitalandequipmentpurchases.(3)TheAgriculturalCooperativesEquityInvestmentProgromprovidescapitalinvestmentneededbyagriculturalcooperativeswhenbusinessoperationsarebeginningorsignificantlyexpanding.b.MARBIDCOgrantprograms:MARBIDCOoffersthefollowinggrantprograms:(1)TheRuralBusinessEnergyEfficiencyGrantandLoanInterestRateBuy‐DownProgram,thathelpsestablishedfirmsandproducersinacquiringenergysavingequipmentandtechnology.Grantscanbemadeupto10%ofaproject’scost,contingentuponathirdpartyenergyauditreport.(2)TheMarylandFarmandProducerViabilityProgramwascreatedtohelpearlystageenterpriseswithbusinessplandevelopmentandidentifyingandaccessingoperationalandmarketrisk.(3)MarylandValueAddedProducerGrantProgramprovidesaportionofthefederallyrequiredmatchingfundstoqualifiedMarylandapplicantstoUSDA’shighlycompetitiveValue‐AddedProducerGrantProgram.(4)TheLocalGovernmentAgricultural/Resource‐BasedIndustryProjectCostShareProgramsupportslocalandregionalruralbusinessdevelopmenteffortsbyofferingmatchingcostshareassistanceforagribusinessdevelopmentprojects.c.InstallmentPurchaseAgreementsBeginningin2008,MARBIDCOofferedinstallmentpurchaseagreementstosellersoflandconservationeasementstobenefitlandownersandtheStateinataxadvantagearrangement.Inaddition,anewprogram,theNextGenerationFarmlandAcquisitionProgramwasdevelopedtoassisttohelpyoungorbeginningfarmerstopurchaserandpermanentlypreservefarmland.d.Formoreinformationseehttp://www.marbidco.org/about/contact.html.OtherMarylandAgricultureAssistancea.MarylandDepartmentofAgricultureMaryland'sDepartmentofAgicultureprovidesanumberofprogramstoassistcompanies.Amongthemarethefollowing(foradditionalprograms,pleaseseehttp://www.mda.state.md.us/):1.MarylandAgriculture’sMarketingServicesMarylandDepartmentofAgriculture’sMarketingServiceswhichfollowsandpromotesanaggressivemarketingstrategytoexpandeconomicopportunitiesforMarylandfarmersandfoodbusinesses,bothdomesticallyandinternationally.2.TheDepartmentofAgricultureMDAgrictulurealsooperatesmanyprogramsthatprotectthequalityofMaryland’sagricultureandfoodprograms:(1)PlantProtectionandWeedManagement;(2)ApiaryInspections(3)NurseryInspectionsandPlantQuestionnaire(4)TurfandSeedOversight(5)TheStateChemist(6)AgriculturalProductsGradingServices(7)EggInspections

Page 25: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

25

TermsofUse/Disclaimeronpage77

(8)GrainDealersLicensing(9)WeightsandMeasuresInspection(10)BoardofVeterinaryMedicineExaminers(11)TheHorseIndustryBoardFEDERALFINANCINGPROGRAMSU.S.SmallBusinessAdministration(SBA)GuarantyandLoanProgramsSBAGenerallyForover60yearstheUSSmallBusinessAdministration(“SBA”)hashelpedsmallbusinessownersbycounseling,financialsupport,contractsandotherformsofassistance.SBA'sprogramsnowincludefinancialandfederalcontractprocurementassistance,managementassistance,andspecializedoutreachtowomen,minoritiesandarmedforcesveterans.SBAalsoprovidesloanstovictimsofnaturaldisastersandspecializedadviceandassistanceininternationaltrade.SBAprovidesassistancesprimarilythroughitsfourprogrammaticfunctions:(1)AccesstoCapital(BusinessFinancing);(2)EntrepreneurialDevelopment&Education;(3)GovernmentContracting&FederalProcurement;and(4)AdvocacyforSmallBusinesses.SBALoanPrograms:SBAprovidessmallbusinesseswithanarrayoffinancingforsmallbusinesses,includingmicroloans,venturecapital,substantialdebtobligationsandloanguaranteeprograms.Formoreinformationseehttp://www.sba.gov/category/navigation‐structure/loans‐grants/small‐businessloans/sba‐loan‐programs.Basic7(a)LoanProgramThe7(a)LoanProgramincludesfinancialhelpforbusinesseswithspecialneeds.Loansareavailableforbusinessesthathandleexportstoforeigncountries,businessesthatoperateinruralareas,andforotherveryspecificpurposes.(i)SpecialPurposeLoans.SBAoffersseveralspecialpurpose7(a)loanstoaidbusinessesthathavebeenimpactedbyNAFTA,toprovidefinancialassistancetoEmployeeStockOwnershipPlans,andtohelpimplementpollutioncontrolmechanisms.1)CAPLines‐whichisanumbrellaprogramthathelpssmallbusinessesmeetcertainworkingcapitalneeds.(2)CAIP‐ortheCommunityAdjustmentandInvestmentProgramwhichisdirectedtoassistbusinessesaffectedbytheNorthAmericanFreeTradeAgreement.(3)PollutionControl–whichasof2011isnotcurrentlyofferedduetolackofappropriations,butisspecificallydesignedtohelpbusinessesthatarereducingtheirenvironmentalimpact.(4)EmployeeTrustsProgramwhichisdesignedtoprovidefinancialassistancetoEmployeeStockOwnershipPlans.(ii)ExpressProgramsthatofferexpeditedloanproceduresforselectborrowers,particularlyactivemilitary,veteransandborrowersfromdistressedcommunities.(iii)ExportLoanProgramswhicharedesignedtoaidsmallbusinessesexpandtheirexports.(iv)RuralBusinessLoanstoaidthesmallcommunity/ruralbasedlenderinstreamliningtheloanprocesstoaidbusinessesinlocalcommunitiesthathave

Page 26: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

26

TermsofUse/Disclaimeronpage77

sufferedeconomiclossandhighunemployment.(v)7(a)LoanProceedsmaybeusedtoestablishanewbusinessorassistintheacquisition,operationorexpansionofanexistingbusiness,includinganyofthefollowing:(1)Purchasinglandorbuildingsornewconstruction;(2)Purchaseofequipment,machinery,furniture,fixtures,suppliesormaterials;(3)Workingcapitalneeds;(4)Financingexistinginventoryunderspecialconditions;(5)Therefinancingofexistingbusinessindebtednessthatisnotalreadystructuredwithreasonabletermsandconditions;or(6)Topurchaseanexistingbusiness.(vi)Advantage7(a)LoanInitiativesareaimedatincreasingthenumberofloanstosmallbusinessesandentrepreneursinunderservedcommunities.(1)MaximumLoanSize$250,000(2)LoanGuaranteeof85%forloansupto$150,000and75%forloansgreaterthan$150,0007(m)LoanProgramorMicroLoanProgramItisaprogramthatprovidessmall,short‐termloanstosmallbusinessesandcertainnot‐for‐profit.(i)MaximumLoanamountis$50,000,averageloanis$13,000.(ii)Maximumloantermis6years(iii)InterestsRatesvarybasedonIntermediary,buthavebeenbetween8%and13%(iv)PermittedUses:(1)Workingcapital(2)Purchaseofinventory,supplies,furnitureorfixtures(3)PurchaseofmachineryorequipmentCDC504LoanProgramTheCDC/504loanprogramisdesignedtoencourageeconomicdevelopmentwithinacommunitybyprovidingsmallbusinesseswithlong‐term,fixedratefinancingforexpansionormodernization.(i)Typically,aCDC/504projectincludes:(1)Aloansecuredwithaprivatelenderwithaseniorlienfor50%oftheprojectcost(2)SBAprovidesa100%guaranteeddebentureandajuniorlienforupto40%ofprojectcost(3)Borrowermustcontribute10%ofprojectcostasequity(ii)Useof504LoanFunds.(1)Purchaseoflandandexistingbuildings,improvements,utilities,parkingorlandscaping.(2)Constructionofnewfacilitiesormodernization,renovationorconversionofexistingfacilities(3)Purchaseofmachinery&equipment(4)Cannotbeusedforworkingcapital,inventoryorrefinancingdebt.(iii)General(1)BorrowermustbeSmallBusinesswithSBASizeStandards

Page 27: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

27

TermsofUse/Disclaimeronpage77

(2)MinimumLoanis$1.5million(3)Collateralandpersonalguaranteesofownersrequired.SmallBusinessInnovationResearchProgram(SBIR)TheSBA’sOfficeofTechnologyadministerstheSmallBusinessInnovationResearch(SBIR)Program.TheSBIRisaimedatensuringthatsmallUS,high‐tech,innovativebusinessesplayasignificantroleinthefederalgovernment'sresearchanddevelopmentefforts.Formoreinformationseehttp://www.sba.gov/about‐sbaservices/7050.EligibilityCriteria(1)American‐ownedandindependentlyoperated(2)For‐profit(3)Principalresearcheremployedbybusiness(4)Companysizelimitedto500employeesParticipatingFederalAgenciesEachyear,elevenfederaldepartmentsandagenciesarerequiredbySBIRtoreserveaportionoftheirR&Dfundsforawardtosmallbusiness.Theseagenciesinclude:(1)DepartmentofAgriculture(2)DepartmentofCommerce(3)DepartmentofDefense(4)DepartmentofEducation(5)DepartmentofEnergy(6)DepartmentofHealthandHumanServices(7)DepartmentofHomelandSecurity(8)DepartmentofTransportation(9)EnvironmentalProtectionAgency(10)NationalAeronauticsandSpaceAdministration(11)NationalScienceFoundationSBIRApplicationProcessTheapplicationisaThreePhaseProgram(1)PhaseIisthestartupphase.Awardsofupto$100,000,forapproximatelysixmonths,supportexplorationofthetechnicalmeritorfeasibilityofanideaortechnology.(2)PhaseIIawardsupto$750,000,forasmanyastwoyears,expandsPhaseIresults.Duringthistime,theR&Dworkisperformedandthedeveloperevaluatescommercializationpotential.OnlyPhaseIawardwinnersareconsideredforPhaseII.(3)PhaseIIIistheperiodduringwhichPhaseIIinnovationmovesfromthelaboratoryintothemarketplace.NoSBIRfundssupportthisphase.Thesmallbusinessmustfindfundingintheprivatesectororothernon‐SBIRfederalagencyfunding.TheSBARole‐TheSBAplaysanimportantroleasthecoordinatingagencyfortheSBIRprogram.Itdirectsthe11agencies'implementationofSBIR,reviewstheirprogress,andreportsannuallytoCongressonitsoperation.IntellectualPropertyRightsParticipationintheSBIRprogramandtheSTTRProgram(discussedbelow)requirethesmallbusinesstoallocatecertainintellectualpropertyrightstothegovernment.

Page 28: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

28

TermsofUse/Disclaimeronpage77

Althoughsomeexclusionscanbemadeforintellectualpropertydevelopedpriortoparticipationineitherprogram,caremustbeexercisedinreviewingthecontractstoensurethatthemaximumprotectionavailabletothesmallbusinessisobtained.TheSmallBusinessTechnologyTransferProgram(STTR)LiketheSBIRProgram,theSTTRisasmallbusinessprogramthatprovidesfundingopportunitiesinthefederalinnovationresearchanddevelopmentarena.Thisprogramfocusesontheexpansionofpublic/privatesectorCentraltotheprogramisexpansionofthepublic/privatesectorpartnershiptoincludethejointventureopportunitiesforsmallbusinessandthenation'spremiernonprofitresearchinstitutions.EligibilityforForProfitEntities(1)American‐ownedandindependentlyoperated;(2)For‐Profit;(3)Principalresearcherneednotbeemployedbysmallbusiness;(4)Companysizelimitedto500employees.EligibilityforNonprofitResearchInstitutions(1)Nosizelimit.(2)LocatedintheUS.(3)Meetoneofthreedefinitions.(4)Nonprofitcollegeoruniversity.(5)Domesticnonprofitresearchorganization.(6)FederallyfundedR&Dcenter(FFRDC).ListofParticipatingAgencies.(1)DepartmentofDefense(2)DepartmentofEnergy(3)DepartmentofHealthandHumanServices(4)NationalAeronauticsandSpaceAdministration(5)NationalScienceFoundationTheseagenciesdesignateR&Dtopicsandacceptproposals.ApplicationProcess.TheparticipatingagenciesmakeSTTRawardsbasedonsmallbusiness/nonprofitresearchinstitutionqualification,degreeofinnovation,andfuturemarketpotential.Smallbusinessesthatreceiveawardsthenbeginathree‐phaseprogram.(1)PhaseIisthestartupphase.Awardsofupto$100,000forapproximatelyoneyearfundtheexplorationofthescientific,technical,andcommercialfeasibilityofanideaortechnology.(2)PhaseIIawardsofupto$750,000,foraslongastwoyears,expandPhaseIresults.Duringthisperiod,theR&Dworkisperformedandthedeveloperbeginstoconsidercommercialpotential.OnlyPhaseIawardwinnersareconsideredforPhaseII.(3)PhaseIIIistheperiodduringwhichPhaseIIinnovationmovesfromthelaboratoryintothemarketplace.NoSTTRfundssupportthisphase.Thesmallbusinessmustfindfundingintheprivatesectororothernon‐STTRfederalagencyfunding.SmallBusinessInvestmentCompany(SBIC)SmallBusinessInvestmentCompanies(“SBICs”)aregovernment‐supportedprivate

Page 29: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

29

TermsofUse/Disclaimeronpage77

equityfundswhichmakeinvestmentsinAmericansmallbusinessesunderlicensesgrantedbytheU.S.SmallBusinessAdministration(“SBA”).Oncelicensed,SBICsmustcomplywithSBAregulations.TheSBA’sInvestmentDivisionadministerstheSBICprogram.TheInvestmentDivisionislocatedattheSBA’snationalheadquartersat409ThirdStreet,SW,Washington,D.C.20006.TheSBICprogramwascreatedbyCongressin1958.Since1958,SBICshaveinvestedover$55billioninsmallU.S.companies.InthefiscalyearendingonSeptember30,2009alone,SBICsparticipatedinnearly2,700financings,investing$1,856,000,000in1,481smallbusinesses.ManymajorAmericansmallbusinesseswereassistedbySBICfinancingsduringtheirearlyyears.Theseinclude:Intel,AppleComputer,FederalExpress,JetBlueAirways,Staples,OutbackSteakhouse,RadioOneandBuild‐a‐BearWorkshop.AsofApril,2010,therewere311licensedSBICsinforty‐threestates.Therewere35SBICsinMarylandanditscontiguousstates;however,mostSBICsoperateonaregionalbasis,andthereforemanySBICslocatedeastoftheMississippiRiverarepotentiallyinterestedininvestinginMarylandsmallbusinesses.AdirectoryofallcurrentlylicensedSBICscanbefoundathttp://www.sba.gov/sites/default/files/inv_sbicall.txt.ThemostsalientfactorofthecurrentSBICprogramisthatlowinterestgovernmentloans,knownas“Leverage”,arecustomarilymadeavailabletoSBICsintheformof“Debentures”,whicharetenyearunsecuredloansunderthetermsofwhichinterestmustbepaidtothegovernmentsemi‐annually.Thepracticaleffectofthesemi‐annualinterestrequirementisthatSBICsmustnecessarilyinvestmostoftheircapitalincashflowpositivecompaniesthatwillbeabletopayinteresttotheSBICssemi‐annuallysothattheSBICsinturnwillbeabletopaytheSBAinterestontheDebenturessemi‐annually.TheDebentureprogramisthuswellsuitedtothemezzanineiinvestingmodel.ThismeansthatSBICinvestmentsinprivatecompaniesaretypicallystructuredasdebt(generallyunsecuredorwithajuniorsecuredposition)bearingasignificantlyhigherinterestratethannormalbankloans,andtheSBICfurtherobtainsanequity“kicker”intheformofwarrants.TheSBICwillgenerallyeitherobtainaseatonthecompany’sboardofdirectorsoratleastobservationrightsatboardmeetings.VirtuallyeverySmallBusinessInvestmentCompany(“SBIC”)isorganizedasalimitedpartnership.Thelimitedpartnershipisgenerallysetupwithaninitialtenyearlife.TheworkingassumptionoftheSBAisthatforthefirstfiveyearstheSBICwillmakeinvestmentsinportfoliocompaniesandforthesecondfiveyearstheSBICwillexitthoseinvestments.BecauseoftherelativelyshorttimehorizonofSBICinvestments,theSBICwillgenerallynegotiatealternateexitoptionsatthetimethattheSBICfinancingisarranged.Further,becausemostSBICsderivemostoftheirincomefromtheirequity“kickers”,SBICsaremostinterestedininvestinginsmall,rapidlygrowingfirmswithsolidbusinessplansandcapablemanagement.FurtherinformationabouttheSBICprogramcanbeobtainedfromtheofficialSBAwebsite:http:archive.sba.gov/aboutsba/sbaprograms/inv/index.html.Formoreinformationseehttp://www.sba.gov/content/sbic‐program‐0.CooperativeResearchandDevelopmentAgreements(CRADAs)

Page 30: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

30

TermsofUse/Disclaimeronpage77

CRADA’sarewrittenagreementsbetweenoneormorefederalagenciesandoneormorenon‐federalparties.ACRADAallowsthefederalgovernmentandnon‐federalpartnerstooptimizetheirresources,sharetechnicalexpertiseinaprotectedenvironment,shareintellectualpropertyemergingfromtheeffort,andadvancethecommercializationoffederallydevelopedtechnology.CRADA’swerecreatedasaresultoftheStevenson‐WydlerTechnologyInnovationActof1980,PublicLaw96‐480,asamendedbytheFederalTechnologyTransferActof1986,PublicLaw99‐502.CRADA’sareauthorizedby15U.S.C.§3710aetseq.andaresubjecttoapplicablegovernmentagencyregulations.PurposeCRADA’sallowgovernmentresearcherstoexchangetechnicalexpertisewithnonfederalpartnersandtoacceptreimbursementforresearchconductedundertheCRADA.CRADA’sareappropriatewhenideas,staff,materials,equipmentistobeexchangedoveraperiodoftimeforthepurposeofcollaborationand/oraninventionmayresult.MoneycanbeprovidedtoagovernmentagencyunderaCRADA.Thegovernmentmaycontributeawidevarietyofresources,includingpersonnel,services,facilities,equipment,intellectualproperty,andanyotherresourcesthatwouldfallundertheumbrellaof“personnel,servicesandproperty.”Thegovernmentmaynotcontributefunds.[edit]ParticipationCRADA’smustinvolveatleastonenon‐federalparty.Inadditiontogovernmentscientists,theotherparticipantsinaCRADAmaybeoneormoreofthefollowing:privatecorporations(U.S.orforeign),nonprofitandnot‐for‐profitinstitutions(U.S.orforeign),individuals(U.S.orforeign),stateandlocalgovernments(U.S.),andotherfederalagencies(U.S.)Smallbusinessesgenerallyreceivespecialconsideration.BusinesseslocatedintheU.S.thatagreethattheproductsembodyinginventionswillbesubstantiallymanufacturedintheU.S.receivepreferentialtreatment.Incaseofanentityunderthecontrolofaforeigngovernment,considerifthatforeigngovernmentpermitsU.S.entitiestoenterintoCRADA’sorlicensingagreements.AgreementACRADAisnotaprocurementcontractorgrantandshouldnotbeviewedasanalternativetonormalprocurementprocedures.Generally,thegovernmentalagencyprovidesastandarddocumenttobeginnegotiations.Thepartiesmaynegotiatesomeoftheprovisions.Proposals&InformationThereisnocentrallistingforCRADAopportunities,whichariseperiodically.Informationmaybeobtainedbycontactinggovernmentagenciesorlaboratoriesrelevanttoyourindustrydirectly.EachgovernmentagencyorlaboratorywillprovideadescriptionofanyexistingCRADAopportunityandproceduresforenteringintoaspecificCRADA.Additionally,prospectiveCRADA’sareoftenadvertisedintheFederalRegister:http://www.gpoaccess.gov/fr/SmallBusinessConcernAsmallbusinessconcernisabusinessorganizedforprofitwithitsprincipalplaceof

Page 31: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

31

TermsofUse/Disclaimeronpage77

businessintheUnitedStates,thatdoesnotexceedthenumericalsizestandardforitsindustry.Theseentitiesareself‐certified,anddonotneedacomplicatedapplicationprocesstypicallyrequiredintheotherprogramsidentifiedabove.ThisisintendedtoinsurethatfundsearmarkedforsmallbusinessesgotosmallbusinessesandmostoftheprogramsreferencedhereunderrequirethattheapplicantfirmmeetthesizestandardsestablishedbytheSBAforitsspecificSICorNAICSindustrycode.Thesesizestandardssetforththetotalannualreceiptsthatcanbereceivedbyeachentityand,insomecircumstancesacaponthenumberofemployeesthatanapplicantfirmhastostillbeconsideredasasmallbusiness.ThisisoneofthebroadestcategoriesandtherearecertaincontractsavailableforsmallbusinessconcernsregardlessofsocialoreconomicdisadvantageasmayberequiredunderotherSBAprograms.Forexample,atemporaryplacementagencyforemployeescannothaveannualreceiptsinexcessofmorethan$6.5millionayeartoqualify.Formoreinformation,pleaseseehttp://www.sba.gov/content/ami‐small‐business‐concern.SmallDisadvantagedBusinessConcern(SDB)&8(a)ProgramSmallDisadvantagedBusinessConcernsParticipantsunderthe8(a)programandtheSDBprogramreceivebroadassistancefromtheSmallBusinessAdministration(the“SBA”)intendedtoassistsociallyandeconomicallydisadvantagedfirmsincompetinginthemarket.Itisanine‐yearbusinessdevelopmentprogramthatprovidescounseling,marketingandtechnicalassistancetosmallbusinesscertifiedforparticipation.TheexceptionisthattheSDBprogramstrictlypertainstobenefitsinfederalprocurement.8(a)firmsautomaticallyqualifyforSDBprogram.Formoreinformation,pleaseseehttp://www.sba.gov/content/8a‐business‐development.EligibilityTobeeligiblefor8(a)orSDBtreatmenteligiblefirmsmustbe(i)asmallbusiness,(ii)unconditionallyownedandcontrolledbyoneormoresociallyandeconomicallydisadvantagedindividualswhoareofgoodcharacterandcitizensoftheUSand(iii)whohavedemonstratedthepotentialforsuccess.OnFebruary11,2011,theSBAadoptednewrulesregardingthe8(a)programwhichtakeeffectonMarch14,2011.Genderisnotcurrentlyenoughtoqualifyasbelongingtoasociallydisadvantagedclassandtypically8(a)programsarereservedforminoritybusinesses.Inordertoestablishthatanindividualiseconomicallydisadvantagedthepersonaladjustedgrossincomeoftheindividualcannotexceed$250,000averagedoverthepastthreeyearsintially,and$350,000forcontinuedeligibility.Inaddition,inordertoestablishthattheapplicantfirmiseconomicallydisadvantaged,theownermaynothaveapersonalnetworth(afterexcludingtheindividual’sequityinthefirmandequityintheirprimaryresidenceandIRAaccounts)ofmorethan$250,000initiallyor$750,000forcontinuingeligibility.Moreover,theapplicantcannothavetotalassetsthatexceed$4millionforinitialeligibilityand$6millionforcontinuedeligibility.TheSBAalsoconsiderstheindividual’saveragetwo‐yearincome,fairmarketvalueofallassetsownedbytheindividualowners,theaccesstocapitalandcreditavailabletotheindividualandthefinancialconditionoftheapplicantfirmin

Page 32: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

32

TermsofUse/Disclaimeronpage77

determiningeconomicdisadvantageBenefitsCertifiedSDBsareeligibleforspecialbiddingbenefitsandtheSBAoffersincentivestoprimecontractorstoawardcontractstoeligible8(a)/SDBfirms.Thesebenefitsinclude:EvaluationcreditstoprimecontractorstoincreaseandcreatesubcontractingopportunitiesforSDBsandformeetingcertainSDBsubcontracttargets.ListingonPRO‐Net,anon‐lineregistryofSDB‐certifiedfirms,thatcanbesearchedbycontractingofficersandlargebusinessprimecontractorsforpotentialsuppliers.Priceevaluationadjustmentsofupto10percentwhenbiddingonfederalcontractsincertainindustriesandundercertaincircumstancestopreventSDBfirmsfrombeingoutbidbylargercompanieswhohavegreatereconomiesofscale.Thepricecreditorpriceevaluationadjustmentsarenotavailableforindustrycategorieswherebenchmarksarenotrequired.Inaddition,thepriceevaluationadjustmentsdonotapplyto1)procurementsthatarebelowthesimplifiedacquisitionthresholdof$100,000;2)procurementsthataresetasideforsmallbusiness;3)procurementsundertheSBA8(a)program.Certainbusinessplanningandbusinessdevelopmenttools,particularlyintheareaofprocurement.VeteranOwnedSmallBusinessConcern&ServiceDisabledVeteranOwnedSmallBusinessConcernsAVeteranOwnedSmallBusinessConcern(VOSB)isasmallbusinessconcernofwhichnotlessthan51percentisownedbyoneormoreveterans;andoneormoreveteranscontrolthemanagementanddailyoperationsofsuchfirm.Aservicedisabledveteranownedsmallbusinessconcern(SDVOSB)hasthesamecriteriaasaVOSB,exceptthatthe51%alsomustbeownedbyaveteranthatwaswoundedandbecamedisabledinconnectionwithhisorherserviceinthearmedforces.Ineachcasetheveteranmustcontrolthemanagementanddailyoperationsofthebusinessandholdthehighestofficerpositioninthebusiness.Bothtypesofconcernsmayself‐certifytheirstatusthroughtheprovisioninFAR52.219‐1.Manygovernmentagencieshaveestablishedaset‐asideprogramforservicedisabledveterans.Inaddition,therearepotentiallycertainprocurementpreferencesforsmallbusinessconcernsownedandcontrolledbyservice‐disabledveterans.TheSBAmayconsideraservice‐disabledveteranasdisadvantagedforthepurposesoftheSection8(a)programonacase‐by‐casebasis,whichwouldgrantSDVOSBfirmadditionalbenefits.Formoreinformation,pleaseseehttp://www.sba.gov/content/veteranservice‐disabled‐veteran‐owned.Woman‐OwnedSmallBusinessConcerns(WOSB)TheWOSBprogrampromotesthegrowthofwomen‐ownedbusinessesthroughprogramsthataddressbusinesstrainingandtechnicalassistance,andprovideaccesstocreditandcapital,federalcontracts,andinternationaltradeopportunities.Thisisaself‐certifyingprogramgovernedbytheSBAandshouldnotbeconfusedwiththeMBE/DBE/programaffiliatedwiththeDepartmentofTransportationthathasmorestringentcertificationprocedures.

Page 33: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

33

TermsofUse/Disclaimeronpage77

ItisnotuncommonforafederalcontractortorequireaWOSBfirmtoprovideevidenceofcertification,andtheMBE/DBEprogramdiscussedbelowmayassistinprovidingsuchcertification.Formoreinformation,pleaseseehttp://www.sba.gov/content/women‐owned‐small‐business‐federal‐contractprogram.EligibilityWomen‐ownedsmallbusinessconcernisasmallbusinessconcern(1)whichisatleastfifty‐onepercent(51%)ownedbyoneormorewomenwhoareUScitizens;or,inthecaseofanypubliclyownedbusiness,atleast51percentofthestockofwhichisownedbyoneormorewomen;and(2)whosemanagementanddailybusinessoperationsarecontrolledbyoneormorewomen.AneconomicallydisadvantagedWOSBor(EDWOSB)isaWOSBwhoseownersareeconomicallydisadvantaged.Awomanispresumedeconomicallydisadvantagedifherpersonalnetworthislessthan$750,000(withsomeexclusions);heradjustedgrossyearlyincomeaveragedoverthethreeyearspriortocertificationislessthan$350,000,andthefairmarketvalueofallofherassetsislessthan$6million(withsomeexclusions).Exclusionsfromthepersonalnetworthcaluclationareasfollows:theownershipinterestintheEDWOSBequityintheprimarypersonalresidenceanyincomereceivedfromtheEDWOSBthatisaSCorporation,LLCorpartnershipifthewomancandemonstratethatthedistributionswerereinvestedintotheentityorusedtopaytaxesarisinginthenormalcourseofbusinessIRAfundsorotherofficialretirementaccountsthatareunavailableuntilretirementagewithoutasignificantpenalty.BenefitsThereareannualgoalsestablishedbythegovernmenttohaveatleastfivepercent(5%)ofthetotalvalueofallprimecontractandsubcontractawardsforeachfiscalyeartobeawardedtoWOSBs.Contractingofficersmaysetasidecontractsin83NAICSindustrieswhereWOSB'sareunderrepresentedorsubstantiallyunderrepresented.FormoreinformationontheNAICScodesaffected,pleaseseehttp://www.sba.gov/sites/default/files/files/gc_wosb_naics_grids.pdf.ThesetasidecanonlyoccurifthecontractingofficerhasareasonableexpectationthattwoormoreWOSBsorEDWOSBswillsubmitoffersforthecontractandtheanticipatedcontractpriceisnotgreaterthan$5millionformanufacturingcontractsand$3millionforothercontracts.INCUBATORSUniversityIncubatorsTechnologyAdvancementProgramatUniversityofMarylandCollegePark(TAP)TAP,isaprogramattheUniversityofMarylandCollegePark.ItisadivisionoftheA.JamesClarkSchoolofEngineering.TAPoffersacost‐effectivemodernwetlaboratory,furnishedofficesandconferenceroomsequippedwithTelecomsystems,internet,HVACaroundtheclock,andutilities.Formoreinformationontheprogram,seewww.tap.umd.edu.UniversityExpertise‐ExperiencedprofessionalsassistcompaniesinTAPwith:(a)Extensiveadvisingandcoaching(b)Fundraisingfrominvestorsandgrantors(c)

Page 34: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

34

TermsofUse/Disclaimeronpage77

Marketanalysis,businessplanningandcustomeracquisitionstrategy(d)FinancialAnalysis(e)Preparationsforinvestorpresentationsandduediligencepreparation(f)Legaladvice(g)TAPhastheirownIntellectualPropertyClinic(h)Pressreleaseservices(i)Executiverecruiting(j)LegalandIntellectualPropertyprotectionclinic(2)SpecialFacilities(a)BiotechnologyResearchandEducationPrograms(b)MarylandNanoCenter(c)UniversityofMarylandEnergyResearchCenterEligibilityCriteria&ApplicationCandidatesfortheprogrammustbeearly‐stagecompaniesthataredevelopingtechnologyorientedproductsorservices.Theadmissionprocessgenerallycantakeanywherefromafewweekstoafewmonths.Periodofresidenceintheincubatorisgenerallyonetofouryears.TherearethreestepsanapplicantmusttakeinordertobeacceptedintotheTAPprogram.(a)Submitanexecutivesummary.OncethesummaryisreviewedTAPmanagementwillcontactapplicantstoquestionthemabouttheirsummary.Also,TAPexecutiveswillrequireaface‐to‐facemeetingorteleconferencewiththeapplicant.(b)Ifacompany’sexecutivesummaryisapprovedthananentrepreneurwillneedtocreateaTechnicalPlan.ThisplanwillbeanalyzedbyTAP’sexecutivestodeterminethefeasibilityofthecompany.(c)Ifthecompany’stechnicalplanisapprovedthananentrepreneurwillneedtosubmitaBusinessPlanandafterwardstheentrepreneurwillneedtopresenthisorherBusinessPlantoapanelofindustryandbusinessexperts.Formoreinformation,pleasesee:http://www.tap.umd.edu/IncubatorandAccelerator‐UniversityofMarylandBaltimoreCounty(UMBCTechCenter)ThisprogramisadministeredbytheUniversityofMaryland‐BaltimoreCounty(UMBC),locatedadjacenttotheUMBCcampus.Thisprogramisapartofbwtech@UMBCResearchandTechnologyPark.UMBC’sincubatoralsooperatesanIdeaLabtohelpUMBCstudentsandfacultydevelopbusinesses.Thisincubatorassistsstart‐upbiotechnologycompaniesorexistingmid‐sizeinformationtechnologyfirmswhodesiretogrowtheirbusiness.“ThetechnologycenteratUMBCisarguablytheregion’smostsuccessfulincubatorforbio‐sciencecompanies.InVitroTechnologiesaprofitablecompanythatgrewfromtwoemployeesto80in10years,andCellWorks,whichhasgrownfromthreeto30employeesoverthepast4years,arethetwomostnotableexamplesofcompaniesthatgraduatedUMBC’sincubationprogramandfoundhomesinBaltimore”OneBillioninProjectsforJohnsHopkinsinBaltimore—CharlesBelfoure.UMBCbwtech@UMBCcreatedtheresearchandtechnologyparktostrengthenitsroleasaneconomicengineforMarylandandBaltimoreCounty.Thisprogramhasaninfrastructureinplacetohelplaunchabusinessorexpandanalreadyexistingcompany.Anyfirmacceptedbythisorganizationwillhaveaccesstouniversityexpertise,UMBCstudents,variousprograms,andUMBC’sfacilities.AboardcomposedofoveradozenprofessionalsisabletoassistcompaniesparticipatingintheIncubatorandAcceleratorPrograms.Thetypicalperiodofresidenceintheincubatorislimitedtothreeyears,however,withapproval,lifesciencescompaniesmaybeabletostaylonger.TheIncubatorandAcceleratorcomplexincludesthreebuildings:themainbuildingisafour‐storyfacilitywithtwofull‐serviceelevators,on‐sitediningoverlookingthe

Page 35: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

35

TermsofUse/Disclaimeronpage77

cityofBaltimore,andstate‐of‐the‐artconferenceandseminarrooms.Thebiotechnologybuildingisathree‐storyfacilityofofficesandwetlaboratorieswithafullserviceelevator,loadingdock,andhandicappedaccessibleloadingdock.Finally,thelastbuildinghasUMBCTrainingCenterswhichprovideAcceleratorandIncubatorparticipantswithprofessional,scientificandtechnicaltraining.Formoreinformation,pleaseseewww.bwtechumbc.com.(1)TheIncubatorProgramisdesignedforstart‐upcompanies.(2)TheAcceleratorProgramisdesignedforsecondstagecompaniesthatarelookingtoexpand.(3)AprogramthatisuniquetoUMBCisACTiVATEwhichisayear‐longprogramthatpairscompetentbusinesswomenfromtheMarylandareawithtechnologiesthatweredevelopedbystudentsatMaryland.ThisprogramreceivedanawardfortheBestSpecialtyEntrepreneurshipEducationProgramfromtheU.S.AssociationforSmallBusinessEntrepreneurship’s.(4)thereareoveradozenresearchprogramsatUMBCdesignedtofacilitatethesuccessofanystart‐uporfledglingcompany.Experiencedprofessionalsareavailabletohelpanycompany,whetherstart‐uporemerging.Theyprovideservicesrangingfrom:(a)Comprehensivebusinessplanassistance.(b)Providingformalbusinessplanoverviews.(c)Assessingstrengthsandweaknessesofcompanies.(d)Recruiting;qualifyingandorganizingprofessionalmentorsandexternalprofessionalresourcesforclients.StudentsStudentsareactiveinservingthecompaniesintheseprograms.Thereare11,000studentsatUMBCwhoaremajoringineitherIT,Engineering,theSciencesorLiberalArts.TherearenetworksinplaceatUMBCtointroduceUMBCalumsandUMBCstudentswithcompaniesintheAcceleratorandIncubatorprograms.EligibilityCriteriaa.Anapplicantforthisprogramneedstohaveaninformationtechnologyorbiotechnologyfocus.Also,he/shecouldhaveresearchanddevelopmentcomponentstohis/herbusiness.b.Theapplicationfortheincubatorcanbecompletedelectronicallyandiscomposedofthreeparts;generalapplication,executivesummary,andsourcesandusesstatement.http://www.umbc.edu/techcenter/application.htmlc.TheUniversityofMarylandtakesasmallequitypositioninanycompanythatisacceptedintotheincubatorprogram.Traditionally,theytakea1%equityshareforeveryyearthatacompanyparticipatesintheprogram.AcceleratorcompaniesenterintocommercialleaseswiththeUniversityofMarylandanddonotcedeanyequitytotheschool.Formoreinformation,pleasevisit:http://www.bwtechumbc.com/Non‐UniversityIncubators.ChesapeakeInnovationCenterTheChesapeakeInnovationCenterisabusinessacceleratorthatfocusesthepowerofentrepreneurshiponAmerica’smostpressingsecurityrequirements.CreatedbytheAnneArundelEconomicDevelopmentCorporation,CICsourcesandscreens

Page 36: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

36

TermsofUse/Disclaimeronpage77

earlystagetechnologycompaniesandconnectsthosethatmatchthedesiredcriteriatoavaluablenetworkofindustryleading“Partners”inboth,thepublicandprivatesectors.Formoreinformation,seehttp://www.cic‐tech.org.EmergingTechnologyCenter(ETC)TheEmergingTechnologyCenterisanonprofitbusinessincubatorprogramthatisgearedtowardgrowingearlystage,technology‐basedcompaniesinBaltimoreCity.ETCoperatesoutofthreefacilitiesinBaltimoreCity,andisoneoftheregionsmoresuccessfulincubators.Formoreinformation,pleaseseehttp://www.etcbaltimore.comwww.etcbaltimore.com.FrederickInnovativeTechnologyCenter,Inc.(FITCI)FITCI'smaingoalistofosterentrepreneurshipinFrederickCountyandactivelycontributetotheCounty'scontinuedjobgrowthandbusinessstability.Byprovidingentrepreneurialstart‐upassistancetoyoungcompaniesinanurturingandsupportiveenvironment,FITCIencouragestechnologicalinnovationandacceleratesthedevelopmentofcommerciallyviable,technology‐basedbusinesses.Formoreinformation,pleaseseehttp://www.fitci.org.GarrettInformationEnterpriseCenterTheGarrettInformationEnterpriseCenterisatechnologyfocusedincubatorbuildingwhosefocusistosupporttheeconomicgrowthofGarrettCountybycreatinganenvironmentforfacilitatingthesuccessfuldevelopmentofinformationintensivecompanies.Formoreinformation,pleaseseehttp://www.giecworks.comGermantownInnovationCenterPartofMontgomeryCounty’sBusinessInnovationCenter,althoughdescribedasajointpartnershipwithMontgomeryCommunityCollege.Formoreinformation,pleaseseehttp://www.montgomerycountymd.gov/dedtmpl.asp?url=/content/ded/incub/gic/index.asp.HagerstownCommunityCollege'sTechnicalInnovationCenter(WashingtonCounty’sBusinessIncubatoratHagerstownCommunityCollege)WesternMaryland’slargestandmostcomprehensivetechnologybasedbusinessincubator.Formoreinformation,pleaseseehttp://www.technicalinnovationcenter.com.HigherEducationandAppliedTechnologyCenterAone‐stoptechnologyresourceforhighereducationcoursesanddegrees,technicaltrainingandcertification,customizedcorporatetraining,meetingandconferencefacilities,videoconferencingandnetworkedcomputerlabswithSGI,Unix,NTandWindows2000.Thecenteralsofeaturesahigh‐performancemanufacturinglab,biochemicallab,alongwithatechnologybusinesspark(thearea'sclosesttotheArmyfacilitiesatAberdeenProvingGround)thathasflexibleoffice,labandtestingunitsandareastobuildon.Formoreinformation,pleaseseehttp://www.heatcentermaryland.com/.NeotechIncubatorTheNeoTechIncubator,facilitatedthroughtheCenterforBusinessandTechnologyDevelopment,helpsentrepreneursdevelopintothrivingcompaniesandispartoftheHowardCountyEconomicDevelopmentAuthority.Formoreinformation,pleaseseehttp://www.thecenter.biz.

Page 37: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

37

TermsofUse/Disclaimeronpage77

PrinceGeorge’sCounty–TechnologyAssistanceCenterThePrinceGeorge’sCountyTechnologyAssistanceCenter(TAC)isanincubatorprogramestablishedtofosterthecreationandgrowthofearlystagetechnologycompaniesinPrinceGeorge’sCounty.AsanintegralpartofthePrinceGeorge’sCountyEconomicDevelopmentCorporation,theTACpromoteseconomicdevelopmentbyfosteringthesuccessfulgrowthofitsincubatorcompaniesthroughprovisionofaffordablefacilitiesandabroadrangeofbusinessandtechnicalservices.TheTACencouragesandsupportshigh‐growthpotentialtechnologycompanies,withapreferenceforthosedevelopingproprietaryproductsandservices.Formoreinformation,pleaseseehttp://www.pgcedc.com/tac.RockvilleInnovationCenter(RIC)TheRICprovidesspaceandsupportprogramsfordomestictechnologystartups,aswellasforinternationaltechnologycompaniesinterestedinopeningtheirfirstU.S.office.Formoreinformation,pleaseseehttp://www.rockvilleredi.org/business/incubator.html.ShadyGroveInnovationCenterFormerlyknownastheMarylandTechnologyDevelopmentCenter,theShadyGroveInnovationCenterisaprojectinitiatedandmanagedbyMontgomeryCountyDepartmentofEconomicDevelopment.Itwasdeveloped,financedandconstructedasajointpartnershipbetweenthecountyandtheStateofMaryland.Formoreinformation,pleaseseehttp://www.mcinnovationnetwork.com/facilitiesandtenants/facilities/shadygrove‐ic/.SilverSpringInnovationCenter(SSIC)TheSSIChas20,000squarefeetofofficeandR&Dspaceinafour‐storybuildingatthecornerofGeorgiaAvenueandBlairMillRoad.Designedforstart‐upandearlystageinformationtechnologybusinesses,SSIChasover40individualofficesavailableinvaryingsizesanddesigns.Amenitiesincludeastate‐of‐the‐artcommunicationssystemwithaT1lineandthreetofourdatadropsineachoffice,24‐houraccesswithampleparking,sharedofficeequipment,conferenceandmeetingspace,storagespaceandaloadingdock.Formoreinformation,pleaseseehttp://www.montgomerycountymd.gov/mcgtmpl.asp?url=/content/ded/incub/ssic/index.asp.TawesScience/TechnologyIncubatorTheTawesIncubatorisAlleganyCounty'sfirstincubatorfortechnology‐relatedbusinessesinaportionofthe40,000square‐footTawesHall.Formoreinformation,pleaseseehttp://alleganyworks.org/abc_cd/ABC/.TowsonGlobalTowsonGlobal,theBusinessGlobalizationCenter,isTowsonUniversity’sinternationalincubatorforearly‐stagecompanies.TowsonGlobalhelpsbridgethewayforentrepreneurialenterprisestofindsuccessintheglobaleconomy.TheCenteraccomplishesthisbyprovidingbusinesseswithawiderangeofsupportneededtoflourishintoday’scompetitiveglobalenvironment,suchasofficefacilities,businesscounseling,andworkshops.Formoreinformation,pleaseseehttp://www.towsonglobal.com.WheatonBusinessCenter(WBIC)

Page 38: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

38

TermsofUse/Disclaimeronpage77

TheWBICprovidesofficespace,conferenceroomsandsupportservicesforapproximately25‐30localsmallbusinesses.Formoreinformation,pleaseseehttp://www.mcinnovationnetwork.com/facilitiesandtenants/facilities/wheatonic/.IncubationAssociationsTheMarylandBusinessIncubationAssociation(MBIA)TheMBIAisanassociationofbusinessincubatormanagersdedicatedtosharingresources,information,andbestpracticesamongthememberswiththeoverallgoalofpromotingbusinessincubationexcellencewithinallMaryland'sincubators.Formoreinformation,pleaseseehttp://www.mdbusinessincubation.org.TheNationalBusinessIncubationAssociation(NBIA)TheNBIAistheworld'sleadingorganizationadvancingbusinessincubationandentrepreneurship.Itprovidesthousandsofprofessionalswiththeinformation,education,advocacyandnetworkingresourcestobringexcellencetotheprocessofassistingearly‐stagecompaniesworldwide.Formoreinformation,pleaseseehttp://www.nbia.org.BUSINESSENTERPRISEPROGRAMS.MarylandMinorityBusinessEnterpriseProgramTheMinorityBusinessEnterprise(MBE)ProgramisoperatedbytheGovernor’sOfficeofMinorityAffairs.TheMBEProgramisagoalbasedinitiativetoachieveapercentageofMBEparticipationonStateissuedcontracts.TheMBEwasestablishedtoencourageminorityandwomenownedbusinesstoparticipateintheStateprocurementprocess.Marylandagenciesarerequiredtostructuretheirprocurementstoachieveanoverallminimumof25%ofthetotaldollarvalueoftheirprocurementcontractsdirectlyorindirectlyfromcertifiedMBEfirms.Marylandagenciesarerequiredtoattempttoachieveaminimumof7%ofthetotaldollarvalueoftheirprocurementcontractsdirectlyorindirectlyfromcertifiedAfrican‐American‐ownedbusinessesand10%ofthetotaldollarvalueoftheirprocurementcontractsdirectlyorindirectlyfromcertifiedwomen‐ownedMBEbusinesses.InordertoparticipateintheMBEprogram,afirmmustfirstobtaincertificationasaMBE.TheOfficeofMinorityBusinessEnterpriseoftheMarylandDepartmentofTransportation(MDOT),isuniformcertificationagencyfortheStateofMaryland,andistheonlyStateagencythathasauthoritytocertifyafirmasaMBE.OnceacompanyiscertifiedthroughMDOT,itmayparticipateasaMBEsubcontractoronANYstatecontract,regardlessoftheagency.TobeeligibleforcertificationasanMBEfirm,abusinessmustbeatleast51%ownedandcontrolledbyoneormoresociallyandeconomicallydisadvantagedindividuals.AfirmdesignatedasanMBEandwillhaveitsnameappearintheMBEInternetDirectory,areferencedocumentmadeavailabletoallStatedepartments/agencies,thecontractingcommunityandthegeneralpublic.MBEcertificationisdesignedtoexposeyourcompanytoopportunitiesonStateandlocalgovernmentprojects.ThenamesofallcertifiedMBEbusinessesappearinMDOT’sMBEDirectory,whichisavailableonlineandiswidelyusedbyStateagencies,localgovernments,contractors,andthegeneralpublic.Certificationdoesnotguaranteeworktoanycertifiedfirm.Althoughcertificationenhancesafirm’sexposuretoprimecontractorsandthebusinesscommunity,acertifiedfirmstill

Page 39: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

39

TermsofUse/Disclaimeronpage77

mustmarketitself,anditsservices.AllStateagenciesarerequiredtouseeMarylandMarketplace(eMM)toadvertisecontractopportunities.Inordertoreceiveacontractaward,avendormustberegisteredoneMM.Maryland'sDepartmentofGeneralServicesadministerseMM,andtheeMMwebsitecanbefoundat:http://www.eMarylandMarketplace.com.InadditiontoeMM,Stateagenciesalsoareencouragedtosendnoticesofprocurementopportunitiestominoritycontractorassociationsandpublications.Formoreinformation,seealsohttp://www.marylandtransportation.com/EligibilityCriteriaTobeeligibleforcertificationasanMBEfirm,abusinessmustbeatleast51%ownedandcontrolledbyoneormoresociallyandeconomicallydisadvantagedindividuals,whosenetworthdoesnotexceed$1,500,000.Additionally,non‐profitfirmsthatareorganizedtopromotetheinterestsofthephysicallyormentallydisabledalsoareeligibleforMBEcertification.Anindividualispresumedtobesociallyandeconomicallydisadvantagedifthatindividualis:African‐American;Hispanic‐American;Asian‐American;Native‐American;orawoman(Disabledindividuals,whoarenotmembersofoneoftheaforementionedgroups,mayalsobeeligibleiftheyownandcontroltheirbusinessandestablishtheirsocialandeconomicdisadvantage).AdeterminationofwhetheranindividualmeetsMBEeligibilitycriteriaismadeonacase‐by‐casebasis.MDOThasacomprehensivecertificationprocesstodeterminetheownershipandcontroloffirmsthatapplyforMBEcertification.Thereareseveralspecificedibilitycriteriaforcertification.IndeterminingownershipofaMBEfirm,actualinvestmentbytheminorityownerisimportant.Controlincludesbothmanagerialandoperationalcontrolofthecompany.Technicalknowledgeofthefirm’smajorareasofworkisanimportantcomponentofassessingoperationalcontrol.CertificationisbasedontherequirementsprescribedfortheMBE,includingtheeligibilitycriteriasetforthabove.ApplicationsarereviewedbytheMBEIntakeUnittoconfirmthatallrequireddocumentshavebeensubmitted.MDOTisalsoresponsibleforadministratingtheU.S.DepartmentofTransportation’s(USDOT)DisadvantagedBusinessEnterprise(DBE)ProgramfortheStateofMaryland.TheDBEprogramprovidesavehicleforincreasingtheparticipationbycertifiedDBEfirmsinStateandlocalprocurementsthatarefundedwithassistancefromUSDOT.USDOTDBEregulationsrequireStateandlocaltransportationagenciestoestablishgoalsfortheparticipationofDBEfirmsonUSDOT‐assistedprocurements.InMaryland,onlythreeadministrationsparticipateintheDBEprogram:StateHighwayAdministration,MarylandAviationAdministrationandMarylandTransitAdministration.TheeligibilitycriteriaforDBEcertificationisverysimilartothatforMBEcertification.TobeeligibleforcertificationasaDBE,abusinessmustbeatleast51%ownedandcontrolledbyasociallyandeconomicallydisadvantagedindividual(s).BoththeMBEProgramandtheDBEProgramhavePersonalNetWorth(PNW)eligibilityrequirements.ToqualifyasanMBE,thePNWofeachsociallyandeconomicallydisadvantagedindividualwhoownsandcontrolsthefirm,asapartofthe51%ownership,mustnotexceed$1,500,000.Whenanindividual'sPNWexceedsthe$1,500,000threshold,theindividualisnolongereligibleto

Page 40: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

40

TermsofUse/Disclaimeronpage77

participateintheMBEProgram.ThePNWforeachsociallyandeconomicallydisadvantagedindividualwhoownsandcontrolsaDBEfirm,aspartofthe51%ownership,mustnotexceed$750,000.00.AdditionalinformationregardingtherequirementsandcertificationproceduresfortheMBE/DBEProgramsmaybefoundinTitle14,Subtitle3oftheStateFinanceandProcurementArticleoftheMarylandAnnotatedCode,Title21,Subtitle11,Chapter3oftheCodeofMarylandRegulations(COMAR),USDOTregulations49CFRParts23and26,andthemostcurrentMBE/DBEProgramManualissuedbyMDOT.MBEApplicationProcessApplicationsforMBE/DBEcertificationareavailableonlineat:http://www.mdot.state.md.us/MBE_Program/Application.htmlorbycallingtheMDOTOfficeofMBEdirectlyat410‐865‐1269or800‐544‐6056.ApplicationsarethenforwardedtotheCertificationUnitandassignedtoMBEOfficerswhoconductinterviewsatthefirms'officesandperformjobsitevisitsifpossible.Aspartofthecertificationprocess,applicantsmayberequiredtoappearbeforetheMBEAdvisoryCommittee(MBEAC)todiscusstheirbusinessesandtorespondtoquestions.AppearancesbeforetheMBEACareconductedduringpublicmeetings,whichmaybeobservedbyprospectiveapplicants.TheMBEACmakesrecommendationstotheMBEACChairperson,whothenissuesthecertificationdecision.Alistofdocumentsthatmustbesubmittedinsupportofacertificationapplication,islocatedattheMDOTwebsiteat:http://www.mdot.state.md.us/MBE_Program/DBE.html.AnneArundelCountyMinorityBusinessEnterpriseProgramTheOfficeofCentralServicesisresponsiblefortheoperationandmaintenanceoftheCounty'sMBEProgram.TheEnterpriseCommitteeofAnneArundel,anadhoccommitteeoverseestheimplementationandoperationoftheCountyMBEProgram.ItisthepolicyofAnneArundelCountytoassureallpersonsseekingtodobusinesswiththeCounty,equalopportunityandaccesstoparticipateintheprocurementofallcommoditiesandservices.TheMinority/SmallBusinessEnterpriseCoordinatorisanadvocatefor"equalbusinessopportunity"inprocurementandfunctionsonmanylevelsincluding,butnotlimitedto:ProvidingtechnicalassistancetowomenandminoritybusinessesRecordingstatisticsonW/MBEutilizationUpdatingtheCounty'sMinorityandWomen‐OwnedBusinessdirectoryProvidingleadershipanddirectiontotheCounty'sMinorityBusinessEnterpriseCommitteeAvailableContracts:Purchasing(non‐construction)‐ContractswiththeCountyforthepurchaseofgoodsandservices.ConstructionContracts(PublicWorks)‐Constructioncontractsthathaveabidamountof$50,000ormore.Thegoalforminoritybusinessesis10percentand2percentforwomenownedbusiness.BaltimoreCityMinorityBusinessEnterpriseProgramTheMinorityandWomen’sBusinessOpportunityOffice(MWBOO)isresponsibleforadministeringthecertificationofMBEsandWomen’sBusinessEnterprises

Page 41: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

41

TermsofUse/Disclaimeronpage77

(WBE)inBaltimoreCity.EligibilityCriteriaAMBEisabusinessthatisowned,operated,andcontrolledbyoneormoreminoritygroupmemberswhohaveatleast51%ownership,andislocatedintheBaltimoreCityMarketArea.Aminorityincludesmembersofthefollowinggroups:AfricanAmerican,HispanicAmerican,AsianAmerican,orNativeAmerican.AWBEisabusinessowned,operatedandcontrolledbyoneormorewomenwhohave51%ownership,andislocatedintheBaltimoreCityMarketArea.TheBaltimoreCityMarketAreameansthefollowinggeographicregionsofMaryland:AnneArundelCounty;CarrollCounty;BaltimoreCity;BaltimoreCounty;HarfordCounty;HowardCountyandQueenAnne'sCounty.InordertobeconsideredforcertificationbyMWBOO,applicantsmustmeetthefollowingcriteria:Independentlyownedandoperatedbusiness;Inoperation12monthsbeforeapplyingforcertification;Minorityorwomen‐ownedforatleast12monthsbeforeapplyingforcertification;andHaveanoperatingofficeintheBaltimoreCityMarketAreaPre‐qualificationvs.Certification:Pre‐qualificationandcertificationaredifferentprocesses.Pre‐qualificationistheprocessbywhichtheCity’sOfficeofBoardsandCommissions(the“Office”)determinestheworkcapacityofacontractor.Throughananalysisofacontractor'sbasicfinancialinformation,theOfficeassignsabasecapacityrating.Thepre‐qualificationandworkcapacityratingprovidetheCitysomeassurancesthatthecontractorhastheexperienceandresourcestoperformtherequirementsofacontract.Toobtainapre‐qualificationapplication,calltheOfficeofBoardsandCommissionsbyusingthenumberat(410)396‐6883.Certification,asnotedabove,istheprocessbywhichabusinessisdeterminedtobeaminority‐ownedorwoman‐ownedbusiness.MBEApplicationProcessFirm’swishingtoreceivecertificationasanMBEorWBEshoulddownloadaMBE/WBECertificationApplicationoranMBE/WBERe‐CertificationApplicationfromhttp://cityservices.baltimorecity.gov/MWBOO/.Thereisnoapplicationfee.BaltimoreCountyMinorityBusinessEnterpriseProgramTheMinorityBusinessEnterpriseOfficeprovidesinformationtominority,womenanddisabledownedbusinessesregardingprocurementopportunities,preparingofbusinessandmarketingplansandfinancialinformation.BaltimoreCountyGovernmentiscommittedtoprovidinggreateropportunitiesforparticipationbyminority,womenanddisabledownedbusinesses.ThefollowingBaltimoreCountyMWBEservicesareavailable:(1)MWBEDirectory/VendorCompliance,adirectoryofcertifiedminorityandwomenownedbusinessestouseonCountyprojects.(2)Technicalassistanceandindividualcounseling.(3)Participationinoutreachevents,procurementconferencesandtradeshowstofurtherexpandtheprogram’sinitiatives.(4)AnnualreportsontheMBE/WBEparticipationstatus.(5)ReportsontheeffectivenessoftheCounty’sMBE/WBEprocurementefforts.

Page 42: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

42

TermsofUse/Disclaimeronpage77

EligibilityCriteriaMinorityandwomenownedbusinessesthatwishtoparticipateinthePublicWorksMBEprogrammustbecertifiedasprovidedatoneofthefollowingwebsiteshttp://www.mdot.maryland.gov/MBE_Program/Application.htmlorhttp://cityservices.baltimorecity.gov/MWBOO/:Contractorswhowishtobidasgeneralcontractorsmustbepre‐qualifiedthroughBaltimoreCounty’sConstructionContractsAdministrationDivisionshouldvisitherehttp://www.baltimorecountymd.gov/Agencies/publicworks/contracts/pw_contracts_prequal.html:Architects,LandscapeArchitects,EngineersandLandSurveyorswhowishtobeconsideredforworkwithBaltimoreCountyshouldrefertotheProfessionalServicesSelectionforprequalificationinformation.HowardCountyMinorityBusinessEnterpriseProgramHowardCountyhasagoal‐orientedequalbusinessopportunityprogram.ForalistofcertifiedMBE,WBEorDBEfirms(Minority,Women'sorDisabledBusinessEnterprises)orspecificcapabilitiesseehttp://www.howardcountymd.gov/servicesbusiness_businessemployment.htm#anch24395.MontgomeryCountyMinorityBusinessOutreachProgramTheMontgomeryCountyDepartmentofEconomicDevelopmentconductsprograms,sponsorseventsandengagesinvariousotheractivitiestoreachminoritybusinesses.TheCountyhasreceivedseveralawardsforassistancetominorityfirms.MinorityBusinessEnterpriseisdefinedinaccordancewiththeChapter11B‐58oftheMontgomeryCountyCodeandundertheStateofMaryland'sprocurementlaw.Formoreinformationseehttp://www.montgomerycountymd.gov/dedtmpl.asp?url=/content/DED/mbo.asp.PrinceGeorge’sCountyMinorityBusinessEnterpriseProgramThegoalofthePrinceGeorge’sCountyMBEProgramistostructureCounty’sprocurementproceduresandactivitiestofacilitateandencouragetheawardofatleastthirtypercent(30%)ofthetotaldollarvalueawardedintheCounty,directlyorindirectly,toMBEs.TheCounty’sMBEProgramiscomprisedofthreemajorcomponents:MBEProcurementAssistance;BusinessDevelopment;andMBECertification.ThePrinceGeorge’sCountyMinorityBusinessDevelopmentDivision(MBDD),locatedwithintheOfficeofCentralServices,overseestheCounty’sMBEProgram.MBEcertificationisdesignedtoprovidemoreexposuretoyourfirmaswellastheabilitytobecomeasubcontractor.Certificationdoesnot,however,guaranteeworktoanyminorityfirm.AllbidsandRFPsarecompetitive.Tobesuccessful,afirmmustmarketitself,itspersonnelandservices,asanygoodbusinessmust.Since2003,theCountyhasawardedmorethan$40millionannuallytoCountyMBEs.EligibilityCriteriaOnlyfirmsthatareatleast51%ownedandcontrolledbyindividualswhoare:African‐American;Hispanic‐American;Asian‐American;orwomenqualifyundertheCounty’sMBEProgram.

Page 43: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

43

TermsofUse/Disclaimeronpage77

IfyourcompanyiscurrentlyanMBEcertifiedbyMDOTortheWashingtonMetropolitanAreaTransitAuthority(WMATA),theMBDDwillmakeadeterminationconcerningyoureligibilityasanMBEinPrinceGeorge'sCounty.MBEsarerequiredtocertifytotheMBDDonanannualbasis.[edit]ApplicationProcessToobtainMBEcertificationinPrinceGeorge’sCountyyoumust:a.CompleteaBidder’sListApplication,whichmaybeobtainedfromtheCountyonlineattheCounty’swebsite:http://www.co.pg.md.us;b.ObtainaMBEcertificationletterfromeitherMDOTortheWMATA;c.ContacttheMBDDandprovidethefollowingdocumentation:(1)AcopyoftheBidder’sListApplicationand(2)SubmitacopyofthecertificationletterfromeitherMDOTorWMATA.d.MBDDhasan“Interim”certificationtoallowfirmsthatarecertifiedinselectedjurisdictionstobeincludedintheCounty’sMBEProgramonasixmonthbasis.OtherLocalBusinessEnterpriseProgramsandResources1.AnnapolisMinorityandSmallBusinessEnterpriseDivision‐Visittheirwebsiteathttp://www.annapolis.gov/Government/Departments/Economic/SmallBusiness.aspx2.Small,LocalBusinessEnterprise("SLBE")andSmall,LocalandMinorityBusinessEnterprise("SLMBE")ProgramTheseprogramssupportsfirmslocatedinPrinceGeorge’sCountyandMontgomeryCounty,intheStateofMaryland,whoeithermaintaintheirprincipalplaceofbusinessinsuchcounties,orhaveasignificantemployeepresenceinsuchcounties.ASLMBEmustalsobeownedbyaminority.Formoreinformationseehttp://www.wsscwater.com/home/jsp/content/slmbe‐program.faces3.WashingtonDCMinorityBusinessDevelopmentCenterTheWashington,DCMinorityBusinessEnterpriseCenter(DCMBEC)isabusinessconsultingdevelopmentagencylocatedintheDistrictofColumbia.DCMBECworkstocounteracttheeconomicdisparityinperformancebetweenminorityandnonminoritycompanies,andworkswithminoritybusinessestoimprovetheirperformanceandprofitability.Formoreinformationseehttp://www.dcmbec.org/home.html.ThefollowingcriteriaareadministeredwhenevaluatingclientsforservicesthroughtheDCMBEC:•Firmmustbeatleast51%ownedbyanethnicminority(notgenderbased)•LocatedwithinWashingtonD.C.•Afor‐profitentitygeneration,orhavingthepotentialtogenerate,$500,000ormoreinannualrevenuesOPPORTUNITIESFORBUSINESSGROWTHLocalChambersofCommerceChambersofCommercegenerallyarelocalvoluntaryalliances,businessassociationsornon‐profitorganizationsprovidingnumerouspro‐businessservices,includingnetworking,information,marketing,advertising,advocacywithstateandcountygovernment,andgrowthresourcestobusinesses,governmentinstitutionsandotherorganizations,aswellasinterestedindividuals.Thefocusofactivitiesvariesfromchambertochamber.

Page 44: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

44

TermsofUse/Disclaimeronpage77

MarylandChambersofCommerce(MCC)TheMCCisastatewideallianceofbusinessesandorganizations.Itsmissionistomaximizeopportunitiesforitsmemberstogrowandprosper.TheMCCprovidesservicestosmallandgrowingbusinessthroughitsBusinessDevelopmentCouncil.TheCouncil’smissionistoassistsmall,medium‐sizeandminority‐ownedbusinessestogrowandprosper.Councilinitiativesinclude:(1)GrowingBusiness,CelebratingSuccess:Thisprocurementfairandsmallbusinessawardsluncheonisdesignedtomeettheneedsofsmallandminorityownedbusinesses.Theprocurementfairprovidestheopportunitytomeetface‐tofacewithprocurementagentswithMaryland'slargestcompanies.(2)SmallBusinessoftheYearAwardsProgram:Anawardsprogramdesignedtorecognizethededication,innovationandentrepreneurialspiritdisplayedbyMaryland'ssmallbusinesses.(3)NetworkingEvents:TheCouncilsponsorseventsthroughouttheyeartobringbusinesspeopletogethertoexchangeideas,buildastronglistofbusinesscontactsanddobusiness.(4)EducationalWorkshops:TheCouncilsponsorsworkshopsspecificallydesignedtoaddressthebusinessneedsofemployerswith200employeesorless.Formoreinformation,pleasevisittheMDchamberofcommerceathttp://www.mdchamber.orgOtherlocalChambersofCommerceAlleganyCountyChamberofCommerceformoreinformationpleasevisithttp://www.alleganycountychamber.com/BaltimoreCountyChamberofCommerceformoreinformationpleasevisithttp://www.baltcountycc.com/BaltimoreWashingtonCorridorChamberofCommerceformoreinformationpleasevisithttp://www.baltwashchamber.org/index.phpBerlinChamberofCommerceformoreinformationpleasevisithttp://www.berlinchamber.org/CalvertCountyChamberofCommercepleasevisitformoreinformationhttp://www.calvertchamber.org/CarolineCountyChamberofCommerce,Inc.formoreinformationpleasevisithttp://www.carolinechamber.org/CarrollCountyChamberofCommerceformoreinformationpleasevisithttp://www.carrollcountychamber.org/CecilCountyChamberofCommerceformoreinformationpleasevisithttp://www.cecilchamber.com/CharlesCountyChamberofCommerceformoreinformationpleasevisithttp://www.charlescountychamber.org/CrisfieldChamberofCommerceformoreinformationpleasevisithttp://www.crisfieldchamber.com/DorchesterChamberofCommerce,Inc.formoreinformationpleasevisithttp://www.dorchesterchamber.org/Essex‐MiddleRiver‐WhiteMarshChamberofCommerceformoreinformationpleasevisithttp://www.emrchamber.org/FrederickCountyChamberofCommerceformoreinformationpleasevisit

Page 45: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

45

TermsofUse/Disclaimeronpage77

http://www.frederickchamber.org/cwt/external/wcpages/index.aspxGaithersburg‐GermantownChamberofCommerceformoreinformationpleasevisithttp://www.ggchamber.org/GarrettCountyChamberofCommerceformoreinformationpleasevisithttp://www.garrettchamber.com/GreaterBaltimoreCommittee,Inc.formoreinformationpleasevisithttp://www.gbc.org/GreaterBethesda‐ChevyChaseChamberofCommerceformoreinformationpleasevisithttp://www.bccchamber.org/GreaterBowieChamberofCommerceformoreinformationpleasevisithttp://www.bowiechamber.org/GreaterCroftonChamberofCommerceformoreinformationpleasevisithttp://www.croftonchamber.com/GreaterOceanCity,Maryland,ChamberofCommerce,Inc.formoreinformationpleasevisithttp://www.oceancity.org/GreaterPrinceGeorge'sBusinessRoundtableformoreinformationpleasevisithttp://www.bizroundtable.org/GreaterSevernaParkChamberofCommerceformoreinformationpleasevisithttp://www.severnaparkchamber.com/GreaterSilverSpringChamberofCommerceformoreinformationpleasevisithttp://www.gsscc.org/GreaterWashingtonBoardofTradeformoreinformationpleasevisithttp://www.bot.org/HagerstownWashingtonCountyChamberofCommerceformoreinformationpleasevisithttp://www.hagerstown.org/HancockChamberofCommerceformoreinformationpleasevisithttp://www.hancockmd.com/HarfordCountyChamberofCommerceformoreinformationpleasevisithttp://www.harfordchamber.org/HavreDeGraceChamberofCommerceformoreinformationpleasevisithttp://www.hdgchamber.com/HowardCountyChamberofCommerceformoreinformationpleasevisithttp://www.howardchamber.com/KentCountyChamberofCommerceformoreinformationpleasevisithttp://www.kentchamber.org/home.aspxMarylandHispanicChamberofCommerceformoreinformationpleasevisithttp://mdhcc.org/Mid‐AtlanticHispanicChamberofCommerce,Inc.formoreinformationpleasevisithttp://www.mahcc.org/MontgomeryCountyChamberformoreinformationpleasevisithttp://www.montgomerycountychamber.com/TheNewBaltimoreCityChamberofCommerceformoreinformationpleasevisithttp://www.baltimorecitychamber.org/NorthernAnneArundelCountyChamberofCommerceformoreinformationpleasevisithttp://www.naaccc.com/OceanPinesAreaChamberofCommerceformoreinformationpleasevisit

Page 46: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

46

TermsofUse/Disclaimeronpage77

http://www.oceanpineschamber.org/OlneyChamberofCommerceformoreinformationpleasevisithttp://www.olneymd.org/PikesvilleChamberofCommerceformoreinformationpleasevisithttp://www.pikesvillechamber.org/PocomokeCityChamberofCommerceformoreinformationpleasevisithttps://www.pocomoke.com/Home_Page.htmlPrinceGeorge'sBlackChamberofCommerce,Inc.formoreinformationpleasevisithttp://www.pgblackchamber.org/PrinceGeorge'sChamberofCommerceformoreinformationpleasevisithttp://www.pgcoc.org/PrinceGeorge'sCountyHispanicChamberofCommerceformoreinformationpleasevisithttp://www.mahcc.org/QueenAnne'sCountyChamberofCommerceformoreinformationpleasevisithttp://www.qacchamber.com/SalisburyAreaChamberofCommerceformoreinformationpleasevisithttp://www.salisburyarea.com/SouthernAnneArundelChamberofCommerceformoreinformationpleasevisithttp://www.southcounty.org/St.Mary'sCountyChamberofCommerceformoreinformationpleasevisithttp://www.smcchamber.com/TalbotCountyChamberofCommerceformoreinformationpleasevisithttp://www.talbotchamber.org/TowsonChamberofCommerce,Inc.formoreinformationpleasevisithttp://www.towsonchamber.com/WestAnneArundelCountyChamberofCommerceformoreinformationpleasevisithttp://www.waaccc.org/cwt/external/wcpages/index.aspxWheaton&KensingtonChamberofCommerceformoreinformationpleasevisithttp://www.wkchamber.org/MarylandTechnologyDevelopmentCorporation(TEDCO)GeneralTEDCOisacorporationcreatedbytheMarylandStatelegislaturein1998,institutedas“apublicinstrumentalityoftheState”.ItsmainpurposeistofacilitatethecreationofbusinessesandfostertheirgrowthinallregionsoftheStatethroughthecommercializationoftechnology.TEDCOendeavorstobeMaryland'sleadingsourceoffundingfortechnologytransferanddevelopmentprogramsandentrepreneurialbusinessassistance.ProgramsFundingOpportunitiesi.JointTechnologyTransferInitiative(JTTI)TheMarylandTechnologyDevelopmentCorporation(TEDCO)hascontractedwiththeDepartmentofHomelandSecurity(DHS)andtheU.S.ArmyMedicalResearchandMaterielCommand(USAMRMC)tofacilitatetransferoftechnology.TechnologydevelopmentprojectswillbeconsideredwithinthescopeoftheJTTIifthecompanycanshowhowtheproposedtechnologywillmeettheneedsofDHSand/orUSAMRMC(Spin‐In)and/orthecommercializationofDHSorUSAMRMC

Page 47: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

47

TermsofUse/Disclaimeronpage77

technologies(Spin‐Out).FundingfortheJTTIisprovidedbyCongress.Highlights:•Maximumawardsof$75,000insupportoftechnologydevelopment•EmphasisisonthedevelopmentoftechnologiestomeettheneedsofboththeDHSandUSAMRMC•Opensubmission(nodeadline)•SixtydayreviewcycleForadditionalinformationcontact:RonaldKaeseDirector,FederalPrograms410‐715‐4170E‐mail:[email protected]:http://www.marylandtedco.org/publications/JTTI.cfm#ii.Johnson&JohnsonJointInvestmentProgramThejointTEDCO‐J&JseedstageinvestmentprogramisacomponentoftheMarylandTechnologyTransferFund(MTTF)‐‐aseedstagefundforcompaniesworkingwitheitheroneofthefederallaboratoriesoruniversitiesinthestateofMaryland.ThejointprogramprovidesJ&JwithvaluableinsightintothemostpromisingtechnologiesbeinglicensedtotheprivatesectorbytheuniversitiesandfederallabsinMaryland.ThefundingandsubsequentdevelopmentoftechnologyhasprovidedpipelineproductopportunitiesforJ&J.Inaddition,thefundinghasprovidedTEDCOportfoliocompanieswithvaluablecommercialinsight,andthefundinghashelpedbuildsustainablecompaniesthatmeetJ&Jsrequirementforeventualequityinvestmentthroughitsventurecapitalgroup(JJDC).FinallyitprovidesTEDCOportfoliocompaniesaconduitforlicensingofproductsandtechnologiestooneofJ&Jsoperatingcompanies.ProgramEligibilityCriteria:Therearethreetracksforcompaniestoapplytothejointprogram.CompaniesthatarenewtoTEDCOapplyunderTrack1.ApplicantsmustmeettheMTTFeligibilitycriteriaandneedonlyapplyforMTTFfundingwithabudgetuptotheMTTFawardlimit(currently$75,000).Johnson&JohnsonthroughCOSATparticipatesinreviewoftheMTTFproposalsunlesstheapplicantoptsoutofthejointreview.IftheMTTFreviewteamrecommendsfundingoftheseproposals,J&JhastherighttodesignateaspecificamountoffundingforMTTFawardeesfromitsdesignatedawardpool.J&Jmaycontributeupto50%ofafirstMTTFaward,withTEDCOmakingupthebalance.TEDCOportfoliocompaniescanapplyunderTrack2andTrack3.ApplicantsmusthavereceivedanawardunderoneofTEDCO’sexistingseedstagefundingprogramsandsuccessfullycompletedsuchaproject.ToapplyforfundingunderthejointTEDCO‐J&JprogramTrack2,aportfoliocompanysubmitsaconceptpapertodeterminewhetherthereisinterestbyCOSAT.ConceptpapersmaybesubmittedbyTEDCOportfoliocompaniesathttps://www.jnjcosat.com/tedco.aspx.UnderTrack3aportfoliocompanycanapplyforMTTFIIfundingafterreceiptofaninvitationfromaTEDCOreviewcommitteememberuptotheawardlimitof$75,000butanangelinvestormustprovideatleasta1:1matchoftheTEDCOfunds.Foradditionalinformation,pleasesee:http://www.marylandtedco.org/JJ.cfmiii.TechStartProgramTheTechStartProgramwillfunduniversity‐basedorfederallab‐basedteamstodeterminewhetherspecifictechnologieswouldhavethepotentialtobecommercializedthroughastartupcompany.AuniversityorentrepreneursubmitsaproposaltoTEDCOforevaluatingtheopportunity.Anawardwoulddefraycostsofevaluatingthefeasibilityofthestartupopportunity.Proposalsarecappedat

Page 48: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

48

TermsofUse/Disclaimeronpage77

$15,000pertechnology.EligibleApplicants:AlluniversitiesorentrepreneursworkingwithfederallaboratoriesintheStateareeligibleforTechStartfunding.Tobeeligible,auniversityorentrepreneurisrequiredtoassembleateamconsisting,ataminimum,ofthefollowing:•Anexperiencedentrepreneurwhocanprovidebusinessguidancefortheteamastheypursuetheduediligenceprocess.•Aninventororinventorteamwillingtoassistinevaluatingthefeasibilityofastartupandwillingtocollaboratewithastartup,ifoneisformed;and•Atechnologytransfermanager.Foradditionalinformation,pleasecontactLindaSaffer,ProgramManager,UniversityPrograms,410‐715‐[email protected]:http://www.marylandtedco.org/TechStart.cfmiv.UniversityTechnologyDevelopmentFund(UTDF)ThegoaloftheMarylandTechnologyDevelopmentCorporation's(TEDCO)UniversityTechnologyDevelopmentFund(UTDF)istoprovideresourcestoMarylanduniversitiestosupportpre‐commercialresearchonuniversityintellectualpropertytoincreasethelikelihoodofcommercializingthatintellectualproperty.TheprogramhelpsuniversitiestolicenseearlystagetechnologiesmoreeffectivelyandservesasasourceoftechnologydevelopmentprojectsforMarylandcompaniesthatareeligibleforadditionalTEDCOandotherStatefinancingprograms.EligibleInstitutions:AllinstitutionsofhighereducationinMarylandareeligibleforUTDFgrants.InstitutionsthatoperateofficesoftechnologytransferhavetheinfrastructuretoparticipateeffectivelyintheprogramandtomanageintellectualpropertydevelopedwithUTDFfunding.TEDCOcanassistotherinstitutionsinestablishingtechnologytransferinfrastructure.FormoreinformationonthisprogrampleasecontactLindaSaffer,Ph.D.,ProgramManager,UniversityPrograms,at410‐715‐[email protected],pleasesee:http://www.marylandtedco.org/tedcoprograms/utdf.cfmv.TheWorkingCapitalLoanFundTheWorkingCapitalLoanFundhasbeenestablishedbyTEDCOtoprovideloanstoearly‐stagetechnology‐orientedcompanieslocatedintheStateofMaryland.Lowinterestloansofbetween$15,000and$50,000areavailabletoqualifiedapplicantstobeusedforworkingcapitalinordertoassistacompanywithexpansion,marketentry,orproductlaunch.Companiesmustbebeyondtheresearchstageastheseloanscannotbeusedforresearchanddevelopment.TermsandFees:•Ratesareatorbelowmarketrate.•Anonrefundableapplicationfeeof$150isdueatthetimeofapplicationsubmittal.•Loantermisnormally3to5yearswithaminimumtermof6months.•PersonalguaranteesbyallprincipalsinthecompanysatisfactorytoTEDCOaswellasliensoncompanyassetsarerequired.•Companiesarerequiredtosubmitaletterofsupportfromalocaleconomicdevelopmentofficial,anSBDCrepresentative,anincubatormanager,oraprofessionalconsultant.•Anadministrativefeeof.5%isrequiredatthetimeofclosing.vi.MarylandTechnologyTransferandCommercializationFund(MTTCF)ThegoaloftheMTTCFistoprovidefundingforMarylandcompanieswhowishto

Page 49: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

49

TermsofUse/Disclaimeronpage77

developtechnology‐basedproductsand/orservicesincollaborationwiththeUniversitiesand/orFederalLaboratoriesinMaryland.Tobeeligiblefortheprogram,acompanymustbecollaboratingwithaFederalLaboratoryoruniversityinMarylandorbelocatedorbeanaffiliateofanincubatorcompanyinthestate.Inadditionthecompanyapplyingmustmeetthefollowingcriteria:fewerthan16employeesORthecompanyisauniversityspin‐offinbusinesslessthan5yearsANDPre‐revenueORventureinvestmentsunder$500K.Ifthecompanyisinanincubatororanaffiliate,contactyourincubatormanagernow.Additionally,companiesmusthavemorethan50%oftheiremployeespresentinthestateofMaryland.ProgramBenefits:•Fundsupto$75,000areavailabletodefrayacompany’sdirectcostofdevelopingearlystagetechnology.•Programmaybeusedtoperformearlystagefeasibilitytestingontechnology‐basedproducts/servicestoassistinobtainingfinancingforfurtherdevelopment.•Norepaymentisrequiredunlessanduntilthecompanyreceivesrevenuefromsales.•Repaymentiscappedat2Xtheoriginalawardattheendoffiveyears.Acompanycanrepayearlyatthemultiplecurrentfortheyearinwhichbuyoutoccurs.Foradditionalinformation,pleasecontactHenryAhn,410‐715‐4165,[email protected]:http://www.marylandtedco.org/tedcoprograms/mttf.cfmBusinessAssistancei.TheMarylandRuralBusinessInnovationInitiative(RBI2)TheRBI2isdesignedtoenhancecommercializationactivitiesandprovidetechnicalandbusinessassistancetosmalltechnology‐basedcompaniesintheruralareasofMaryland,asdefinedbytheRuralMarylandCouncil.AssistancetocompaniesisprovidedbytheMarylandTechnologyDevelopmentCorporation(TEDCO),throughtheirlocalRBI2representatives.EachregionhasalocalRBI2BusinessMentorwhosejobistoevaluatepotentialclients,andtoprovideresources,consultingservices,andtechnicalmanagementassistance.Activities:TheRBI2Initiativewillachieveitsgoalsthrough:Providinggeneralbusinessassistancein:TechnologycommercializationstrategyIntellectualpropertystrategyMarketchannelsFinancingoptionsBuildingamanagementteamSBIRandSTTRproposalwritingassistanceOrganizationalstructureHumanResourceissuesNewmarketopportunitiesProvidingtechnicalassistancein:PrototypedesignManufacturingAssistanceEnergyAssessmentsIdentifyingfundingopportunitiesIdentifyingcompaniesseekingtechnologiestocommercializeandfacilitate

Page 50: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

50

TermsofUse/Disclaimeronpage77

collaborationswithfederallaboratoriesanduniversitiesinMaryland.Formoreinformation,pleasesee:http://www.marylandtedco.org/tedcoprograms/rbi.cfmFederalLabOpportunitiesi.NASATechnologyOpportunitiesTEDCOcanhelpidentifyNASA‐sponsoredresearch,technology,technicalexpertiseandR&Dcapabilitiesthatmatchtheneedsandinterestsofyourbusiness.TEDCOassistsMarylandbusinessestoimprovetheircompetitivenessbyprovidingfreetechnicalassistanceandinformationtohelpresolvespecifictechnicalquestionsorneedsthatcanbeaddressedwithinalimitedamountoftime.Thisisroutinelydoneonaconfidentialbasis.Also,TEDCOfundingprogramscanhelpyoudevelopNASAtechnology.TEDCOprovidesMarylandcompanieswithinformationaboutthese“technologyopportunities”andhowtopursuethemwithinNASA.NASAisalsoseekingindustrialpartnerstopursuejointresearchanddevelopmentprojectsthathavepotentialapplicationtobothNASAmissionsandthecommercialmarket.TEDCOservesasapointofcontactforbusinessesseekinginformationaboutNASAtechnologies.TEDCOwillworkwithyoutounderstandyourspecificopportunity,question,orneed.Wewillthenprovideassistancethroughourownexpertise,theknowledgebaseofNASA,andotherpartnerswithintheTEDCOfamily.Afterprovidingtheassistance,wemaysendyouabriefevaluationsurveytodetermineyoursatisfactionandtheeconomicimpactofourassistance.Contact:RonaldKaese,410‐715‐[email protected]:http://www.marylandtedco.org/tedcoprograms/nasa.cfmBusinessIncubationTheIncubatorDevelopmentFundprogramprovidesfundingforcapitalexpendituresinthedevelopmentofnewandtherenovationofexistingtechnologyincubatorsinthestate.Todate,thenewfacilitiessupportedbythisfundincludetheETC@JohnsHopkinsEastern,theSilverSpringInnovationCenter,theRockvilleInnovationCenter,theFrederickInnovativeTechnologyCenter@Hood,theFrederickInnovativeTechnologyCenter@Monocacy,thetechcenter@UMBC,theTechnicalInnovationCenter,thePrinceGeorge’sCountyTechnologyAssistanceCenter,theUM‐BBioInnovationCenterandtheGermantownInnovationCenter.FundingResources:Toassistindeterminingwhetherornottostartorexpandanincubator,TEDCOofferstheFeasibilityStudyGrantprogram.Thisgrantprovidesfundingtoagovernment,government‐relatedoruniversity‐relatedorganizationtoengageanoutsideconsultanttoresearchandwriteafeasibilitystudy.Forfurtherinformation,[email protected]‐715‐4167.Website:http://www.marylandtedco.org/tedcoprograms/businessincubation.cfmTheGreaterBaltimoreTechnologyCouncilTheGreaterBaltimoreTechnologyCouncilfacilitatesbusinessnetworkinginBaltimoreandthesurroundingareas.Thisisaccomplishedthroughprogramsandeventsthatgivebusinessownerstheopportunitytomeetface‐to‐faceaswellastoaccessonlineinformationthroughFacebook,Twitter,LinkedIn,YouTube,Flickr,andblogs.http://www.gbtechcouncil.org/.

Page 51: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

51

TermsofUse/Disclaimeronpage77

MembershipTherearethreetypesofmembershipsavailable:technologymemberships,partnermemberships,andeducation/non‐profit/governmentmemberships.https://www.gbtechcouncil.org/Get‐Involved/Joining‐and‐Cost.aspxa.Technologymemberships.ATechnologyCompanyisdefinedasacompanythatgeneratesorintendstogenerateatleast50%ofitsrevenuesfromtheresearch,development,manufacturingorsaleoftechnologyproductsincludingsoftware,hardware,telecommunicationsandInternettechnology;orabiotechnologycompanythatgeneratesorintendstogenerateatleast50%ofitsrevenuesfromthedevelopmentorsaleofbiotechnologyproductsorbiotechnologyresearch.b.Partnermemberships.Partnermembersaredefinedascompaniesandorganizationsthatprovidesupportservicestothetechnologyindustry.Theseservices/organizationsinclude,butarenotlimitedto:accounting,financialinstitutions,benefits,employmentservices,legal,officeequipment/supplies,venturecapital,printers,realestate,hospitality,training,businessconsultants,andmarketing/publicrelations.Theannualinvestmentfortechnologymembersandforpartnermembersdependsonthecompany’snumberoffull‐timeemployeesintheStateofMaryland.Thejoiningcostsdependontheinvestmentlevel:https://www.gbtechcouncil.org/Get‐Involved/Joining‐and‐Cost.aspxc.Education,non‐profitorgovernmentmembership.Tojoinasaneducation,nonprofit,orgovernmentmember,yourorganizationmustbeeither:•Aneducationalinstitutionthatprovidesadegreeprogramorcontinuingeducationclassesincomputerscience,informationtechnology,Webdesign,telecommunications,orbiotechnology.•Anonprofitorganizationwhosemissionaffectsorisaffectedbytechnologyoreducation.•Astate,localorfederalgovernmentinstitutionthattakesaproactiveroleintechnologydevelopment;orservesasaproponentoftechnologygrowthintheGreaterBaltimoreregion.Amembershipapplicationcanbedownloadedhere:https://www.gbtechcouncil.org/Get‐Involved/Membership‐Application.aspxCostsTheannualinvestmentfortechnologymembersandforpartnermembersdependsonthecompany’snumberoffull‐timeemployeesintheStateofMaryland.Thejoiningcostsdependontheinvestmentlevel:https://www.gbtechcouncil.org/Get‐Involved/Joining‐and‐Cost.aspxAlleducation,nonprofit,andgovernmentmemberspayasetannualfeeof$800.ConnectWebsitecontacts:https://www.gbtechcouncil.org/Connect‐With‐Us/Contact‐Us.aspxFacebook:http://www.facebook.com/gbtechcouncilTwitter:http://twitter.com/gbtcFlickr:http://www.flickr.com/photos/gbtc/LinkedIn:http://www.linkedin.com/groups?gid=38393&sharedKey=7D0AAF04D73FYouTube:http://www.youtube.com/GBTechCouncilTechCouncilOfMarylandTheTechCouncilofMaryland(TCM)isMaryland'slargesttechnologytrade

Page 52: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

52

TermsofUse/Disclaimeronpage77

association,whichbringsitsmembersaccesstotechnologyindustryleadersinMaryland,DCandVirginia.TCMhastwodivisions,whichprovidevaluableresourcesandbenefitstohelpbusinessessucceed.MdTechservestheadvancedtechnologycommunityandMdBioservestheMarylandbiotechnologycommunity.http://techcouncilmd.com/TCMhelpstheregion'stechnologyorganizationsgrowthroughitsmembershipandactivitiessuchasnetworkingevents,costsavingprograms,andadvocacyinitiatives.TCM’smissionistopromotethetechnologyindustryandtocreateanenvironmentwheretechnologycompaniescancollaborate,growandsucceed.BenefitsCommitteesThatGetYouInvolved.TCMprovidesaforumthatpromotesleadership,innovation,collaborationandinformationsharingamongtechnologyprofessionalswithinthetechnologyindustry.ThisisafreebenefittoallemployeesinTCMmemberscompanies.PublicPolicy.TCMoffersitsmembersdirectaccesstothepoliticalprocesswithafull‐timeGovernmentRelationsstaffthatprovidesyourbusinesswithastrongvoicethatwillbeheardbypolicymakersatthestate,localandfederallevels.FacetoFaceNetworking.Reachover5,000attendeeseveryyearatmorethan40uniquenetworkingeventsthatprovidetightlyfocusedagendasthatallowyoutomakerealconnections.Marketwire.TCMmembersreceive15%discountonMarkettwires’sstandardpublishedratesforalldomesticdistributionoptions,10%onallinternationaldistributionoptions.CostSavingsPrograms.Savemoneybyparticipatinginoneormoreofourspecialprogramsdesignedformemberstopaylessonproductsandservicestheirbusinessneedstothriveinsuchacompetitivemarketplace.MemberDirectory.TCMpublishesanannualMemberDirectorythatprovidesconciseandcomprehensivelistingsofthecouncil'sover500membercompanies.SponsorshipOpportunities.TCMoffersmembersnumeroussponsorshiplevelsthataredesignedforanysizecompany.MakeconnectionsandbenoticedbythelargesttechaudienceintheindustryatanyofTCMevents.TechExchangeNewsletter.TheTechExchangeisaweeklyemailnewsletterofferingthelatestnewswithintheindustry,memberhighlightsandeventsattheTechCouncilofMaryland.TCM'sWebsiteoffersTCMmembersthelatestindustrynews,adirectoryofmorethan600industryprofessionals,andanup‐to‐the‐minuteeventcalendar‐http://www.techcouncilmd.com.MembershipTechCouncilofMaryland(TCM)membershipduesarebasedontotalemploymentforthecompanywithinMaryland,VirginiaandtheDistrictofColumbia.AllTCMmembershipsarecorporate;individualmembershipsarenotavailable.Onlineapplicationandmail‐inform:https://techcouncilmd.com/membership/join_tcm.phpContact:http://www.techcouncilmd.com/about_tcm/contact_us.phpSmallBusinessResourceCentersTheSmallBusinessResourceCenterprovidesawealthofinformationon‐siteabout

Page 53: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

53

TermsofUse/Disclaimeronpage77

manysubjectsthataffectsmallbusinesses,fromplanningandfinancingtomarketingandinsurance.TheCenterhasalargebusinesslibrary,plusPC‐basedinternetaccesstomagazinesandnewspapersnationwide,forresearchonavarietyofbusinesstopics.Therearevideosandcassettesaswellasliteratureandself‐helpguidescoveringavarietyoftopics,includinghowtostartyourownbusiness,preparingabusinessplan,gettingcredit,businesstaxesandregulatoryresponsibilities,andnetworking.Directions&Contact:http://www.sbrcbaltimore.com/html/general/contact.shtmlResourcesInadditiontotheMSBDCandtheBaltimoreDistrictOfficeoftheSBA,theCenterprovidesinformationandlinksto:SAFF‐StrategicAssistanceConsultingFund“thisnewinitiativeisdesignedtoprovideexpertprivate–sector‐consultingservicestosmall,minorityandmicroenterprisebusiness.BoothManagementConsulting,LLCwilladministerthestrategicAssistanceConsultingFundtobuilduponthebasicservicescurrentlyofferedthroughtheMarylandSmallBusinessDevelopmentCenter,(SBDC)networktoqualifyingclientsandprovidemoreadvancedandspecializedconsultingservices.”FormoreinformationaboutSAFFcall410.625.1297.SCORE‐CounselorsToAmerica’sSmallBusiness‐WhatisSCORE?Score,theServicesCorpsofRetiredExecutives,isa13,000‐membervolunteerassociationsponsoredbytheU.S.SmallBusinessAdministration.Since1964,theassociationhasmatchedvolunteerbusinessmanagementcounselorswithclientsinneedofexpertadvice.SCOREhasexpertsinvirtuallyeveryareaofbusinessmanagementandmaintainsanationalskillsrostertohelpidentifythebestcounselorforaparticularclient.Throughindepthcounselingandtraining,SCOREvolunteershelpprospectiveandestablishedsmallbusinessownersandmanagersidentifyproblems,determinethecauseandfindsolutions.TolocatetheScoreofficenearestyou,call(800)634‐0245.DEVCORP‐ConsultingCorporation‐TheCityofBaltimoreLocalContractorDevelopmentProgram(BLCDP)ismanagedbyDevCorpconsultingCorporation.DevCorpistheindustryleaderinachievingsmallcontractorparticipationinpublicandprivateconstructionprojects.Theprogramprovidessuretybondsandcontractfinancing,detailedtechnicalandbusinessassessmentsofparticipatingcontractors,contractorimprovementworkplansandroadmappingforcontractordevelopment.DevCorpcurrentlytargetsDepartmentofPublicWorks,DepartmentofRecreationandParks,DepartmentofHousingandCommunityDevelopmentandtheOfficeofTransportation.Visittheirwebsiteatwww.devcorp.com.EBMC&BEC‐EmpowerBaltimoreManagementCorporationandtheBusinessEmpowermentCenterisanon‐profitorganization.EBMCmovestowardthefourcoreareaofBaltimore’sstrategy:JobCreation,WorkforceDevelopment,ImprovingtheQualityofLifeandCommunityCapacityBuilding.TheBusinessEmpowermentCenter(BEC)thisofficeisstaffedwithexperiencedprofessionalfrombanking.EBMCwillassistyouinfindingtherightsiteforyourbusinessusingtheirowncomputermappingsystem,commercialrealtors,andtheBaltimoreDevelopmentCorporation.Forfurtherinformationvisitwww.empowerbaltimore.org.MOED‐TheMayor'sOfficeofEmploymentDevelopment‐helpsareabusinesses

Page 54: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

54

TermsofUse/Disclaimeronpage77

hirewell‐qualifiedworkersandupgradeandenhancetheiremployees'skills.EmployBaltimore,MOED'sbusinessservicesarm,canassistyourbusinesswithcustomizedworkforcesolutionsincludingoutreachandrecruitment,applicantprescreening,assessmentandtestingservices,taxcreditinformation,trainingassistanceprogramsandhumanresourcessupport.Formoreinformationorassistance,pleasecall410‐396‐3193orvisitwww.oedworks.com.MarylandSmallBusinessDevelopmentCenters(MDSBDCs)TheMDSBDCnetworkprovidesadvice,counselingandsupporttoentrepreneursandsmalltomid‐sizebusinessesacrossthestate.Thenetwork,apartnershipbetweentheU.S.SmallBusinessAdministrationandtheUniversityofMarylandCollegePark,linksprivateenterprise,government,highereducationandlocaleconomicdevelopmentorganizationstoprovidemanagement,trainingandtechnicalassistancetoMaryland’ssmallbusinesses.AspartofanationalSBDCNetwork,theMDSBDChasrapidaccesstoanumberofinformationresourcestodeliverassistancetosmallbusinesses.TheMDSBDCnetworkisdividedintosixregionsacrossthestate.Formoreinformation,pleasevisithttp://www.mdsbdc.umd.edu/.ManyeducationalreferencesareavailableinlocalMDSBDCresourcelibraries.MDSBDCclientsarefreetocomeinandbrowsematerialsanytimeduringregularofficehours,orusecomputerstodoonlineresearch.EachMDSBDClibrarycontainsbooks,journalsandelectronicmediaonavarietyoftopicsincluding:loans,franchising,startup,marketing,management,statisticaldata,Strategicplanning,businessplanning,andmore.Note:NotallMDSBDC'shavearesourcelibrary.TheMDSBDCoffersworkshopsandadditionalassistanceonpreparingtheapplicationforsubmissionforcertificationforvariousstateandfederalprograms,includingtheMinorityDisadvantaged8(a)certificationfortheSmallBusinessAdministration(SBA)programcreatedtohelpsmalldisadvantagedbusinessescompeteintheAmericaneconomyandaccessthefederalprocurementmarket,andtheMinorityBusinessEnterprise(MBE)certificationfortheMarylandDepartmentofTransportation(MDOT).WesternMaryland:servingGarrett,Allegany,Washington,andFrederickCountyformoreinformationpleasevisithttp://www.sbdc‐wmd.comCentralRegion:ServingBaltimore,BaltimoreCity,HowardandAnneArundelCountyformoreinformationpleasevisithttp://www.centralmdsbdc.orgNorthernRegion:ServingCarroll,Harford,andCecilCountyformoreinformationpleasevisithttp://www.harford.edu/sbdcCapitalRegion:ServingMontgomeryandPrinceGeorge'sCountyformoreinformationpleasevisithttp://www.capitalregionsbdc.umd.edu/SouthernRegion:ServingCharles,CalvertandSt.Mary'sCountyformoreinformationpleasevisithttp://www.sbdchelp.comEasternRegion:ServingKent,QueenAnne's,Caroline,Talbot,Dorchester,Wicomico,SomersetandWorcesterCounty,formoreinformationpleasevisithttp://www.salisbury.edu/sbdcCounselingTherearethefollowingtypesofcounselingavailable:(1)One‐on‐OneCounseling.One‐on‐onecounselingisofferedtoprospectiveand

Page 55: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

55

TermsofUse/Disclaimeronpage77

existingsmallbusinessowners.Manycounselorsareformerbankers,accountantsorbusinessownerswhoworkwithclientstoprovidepersonalizedandconfidentialcounselingatnocosttotheclient.Someoftheareasofconcentrationinclude:BusinessPlanDevelopment,BusinessStructuring,MarketPlanning,ResearchMarketDevelopment,FinancialAnalysis,Control,AccountingSystems,BusinessValuation,ManagementTechniques,DebtandEquityFundingOpportunities,CashFlowAnalysisandFinancialProjections,andManagementInformationSystemDevelopment.(2)GroupCounseling.Anumberofspecializedgroupcounselingsessionsareofferedtoassistclientsinaspecificareaofneed,allowingparticipantstobenefitfromtheexperiencesofotherswhileprovidingthemwiththeopportunitytonetworkandlearninanopen‐endedenvironment.Somespecialtygroupcounselingsessionsinclude:BusinessPlanWriting,Financing,PersonalReadiness,Procurement,andCreditRepair.(3)Procurement/ContractCounseling.TheMDSBDCprovidesspecializedprocurementcounselingservicesthroughitsProcurementTechnicalAssistanceProgram(PTAP).Thisprogram,fundedbytheDefenseLogisticsAgencyandMarylandDepartmentofBusinessandEconomicDevelopment,assistsclientstoidentify,obtain,andperformsuccessfullyonfederal,state,andlocalgovernmentcontracts.(4)HighTechnologyCounseling.Individualcounselingandsmallgroupworkshops,conductedbytrainedtechnologycounselors,areprovidedtoguideclientsthroughthepreparationofvarioustypesofplans.Themanagementassessmentsaredesignedtoimproveperformanceandsupportgrowthandtakingadvantageoffederalandstategovernmentsupportprograms.(5)Retail/RestaurantCounseling.Individualandsmallgroupcounselingisavailabletoassistclientswiththeuniqueaspectsofstarting,managing,andmaintainingaretailorrestaurantoperation,includingassessingfeasibility,assistingwithstorelayout,establishingandmaintaininggoodvendorrelationships,marketing,inventorymanagementandmore.TrainingVirtualClassroom.Acomprehensiveonlinetrainingprogramwhichisavailableatnocost.Thisprogramisdesignedtoprovideinformationandguidancetoentrepreneursinvariousstagesofgrowth.RegionalTraining.Trainingprogramsareofferedintheeveningforaminimalfeeandaretaughtbyskilledprofessionals.Sessionsrangeinlengthfromtwohourstoseveralweeks.ResourcesFinancingTheMDSBDCcanassistitsclientsinidentifyingandsecuringtheappropriatesourceoffundsforbusinessventures.Fundingsourcesinclude:a.SmallOfficeHomeOfficeLoan(SOHO)‐AnewmarketinginitiativeunderSBA'sCommunityExpressandSBAExpressloanguaranteeprograms.Thisinitiativecombinesfinancialandtechnicalassistancetoenablesmallandhome‐basedbusinessownerstoaccessbusinessloansinsteadofconsumerloans.Qualifiedbusinessescanobtainaslittleas$5,000withaliberalrepaymentpolicy,nocollateral,andtechnicalassistancethroughtheMDSBDC.

Page 56: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

56

TermsofUse/Disclaimeronpage77

b.Microloans‐Microloansaresmallerloans,madetoeligibleborrowersinamountsthatrangefrom$100toamaximumof$25,000.Thelendingcriteriaforamicroloanmaynotbeasstringentasthoseestablishedbycommerciallendingsources.Loanproceedscanbeusedforworkingcapital;equipment;furnitureandfixtures;inventory;andleaseholdimprovements.Theproceedscannotbeusedtorefinanceexistingdebts.c.CommercialBankLoans‐MDSBDCcanassistwithdeterminingtheappropriatelendingvehicleforaparticularventure,ensuringthatloanapplicationpackagesarecomplete,andinitiatingcommunicationswithlendersd.AccountsReceivableFinancing/Factoring‐Factoringisthesellingofacompany'saccountsreceivable,atadiscount,toafactoringagency,whichthenassumesthecreditriskoftheaccountdebtorsandreceivespaymentasthedebtorssettletheiraccounts.Factoringcanprovideaquickturnaroundandconvenientfundingtogrowingcompanieswhoneedcapitaltoexpandtheirbusiness.Factoringisnotaloan.Thereisnodebtrepayment,andlong‐termagreementsarenotnecessary.Fortheirservices,Factoringagentsarepaidafee,whichistypicallybasedonapercentageoftoaccountsreceivable.e.SBALoans(i)7(a)LoanProgram.The7(a)LoanGuarantyProgramisoneofSBA'sprimarylendingprograms.Itprovidesloanstosmallbusinessesunabletosecurefinancingonreasonabletermsthroughnormallendingchannels.Theprogramoperatesthroughprivate‐sectorlendersthatprovideloanswhichare,inturn,guaranteedbytheSBA‐‐theAgencyhasnofundsfordirectlendingorgrants.(ii)CommunityExpress.CommunityExpressisapilotSBAloanprogramthatwasdevelopedincollaborationwiththeNationalCommunityReinvestmentCoalition(NCRC)anditsmemberorganizations.Underthepilot,whichisavailabletoselectedlenders,anSBAExpress‐likeprogramwillbeofferedtopre‐designatedgeographicareasservingmostlyNewMarketssmallbusinesses.Theprogramwillalsoincludetechnicalandmanagementassistance,whichisdesignedtohelpincreasetheloanapplicant'schancesofsuccess.(iii)CAPLines.TheCAPLineistheumbrellaprogramunderwhichtheSBAhelpssmallbusinessesmeettheirshort‐termandcyclicalworking‐capitalneeds.ACAPLinesloancanbeforanydollaramount(exceptfortheSmallAsset‐BasedLinedescribedbelow).Therearefiveshort‐termworking‐capitalloanprogramsforsmallbusinessesundertheCAPLinesumbrella:(A)SEASONALLINE:Theseareadvancesagainstanticipatedinventoryandaccountsreceivablehelpduringpeakseasonswhenbusinessesexperienceseasonalsalesfluctuations.Canberevolvingornon‐revolving.(B)CONTRACTLINE:Financesthedirectlaborandmaterialcostassociatedwithperformingassignablecontract(s).Canberevolvingornon‐revolving.(C)BUILDERSLINE:Ifyouareasmallgeneralcontractororbuilderconstructingorrenovatingcommercialorresidentialbuildings,thiscanfinancedirectlabor‐andmaterialcosts.Thebuildingprojectservesasthecollateral,andloanscanberevolvingornon‐revolving.(D)STANDARDASSET‐BASEDLINE:Thisisanasset‐basedrevolvinglineofcreditforbusinessesunabletomeetcreditstandardsassociatedwithlong‐termcredit.It

Page 57: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

57

TermsofUse/Disclaimeronpage77

providesfinancingforcyclicalgrowth,recurringand/orshort‐termneeds.Repaymentcomesfromconvertingshort‐termassetsintocash,whichisremittedtothelender.Businessescontinuallydrawfromthislineofcredit,basedonexistingassets,andrepayastheircashcycledictates.Thislinegenerallyisusedbybusinessesthatprovidecredittootherbusinesses.Becausetheseloansrequirecontinualservicingandmonitoringofcollateral,additionalfeesmaybechargedbythelender.(D)SMALLASSET‐BASEDLINE:Thisisanasset‐basedrevolvinglineofcreditofupto$200,000.Itoperateslikeastandardasset‐basedlineexceptthatsomeofthestricterservicingrequirementsarewaived,providingthebusinesscanconsistentlyshowrepaymentabilityfromcashflowforthefullamount.(iv)LowDoc.TheSBALowDocisastreamlinedloanprogramwhichseekstoensureafasterturnaroundforbusinessesinneedoffinancing.Themaximumloanis$150,000,andcallsforaresponsefromtheSBAwithin36hoursofreceivingacompleteapplication(v)TheExportWorkingCapitalProgram(EWCP).TheSBA'sExportWorkingCapitalProgram(EWCP)supportsexportfinancingtosmallbusinesseswhenthatfinancingisnototherwiseavailableonreasonableterms.Theprogramencourageslenderstoofferexportworkingcapitalloansbyguaranteeingrepaymentofupto$1millionor90percentofaloanamount,whicheverisless.Aloancansupportasingletransactionormultiplesalesonarevolvingbasis.Designedtoprovideshort‐termworkingcapitaltoexporters,theEWCPisacombinedeffortoftheSBAandtheExport‐ImportBankoftheUnitedStates.Thetwoagencieshavejoinedtheirworkingcapitalprogramstoofferaunifiedapproachtothegovernment'ssupportofexportfinancing.TheEWCPusesaone‐pageapplicationformandstreamlineddocumentationwithturnaroundusually10daysorless.AletterofprequalificationisalsoavailablefromtheSBA.f.VentureCapital‐Venturecapitalorganizationscanhelpwithstartingorexpandingabusiness.Financingthroughaventurecapitalistisdifferentfromborrowingfromalenderbecause,insteadofearninginterest,theytakeanequitystake(partownership)inthebusiness,anditmightbesubstantial.Theadvantageofequityfinancingisthatthisinfusionofcapitaldoesnothavetoberepaidlikealoan.Theventurecapitalistearnsaprofitthroughdividendspaidtoshareholdersofthecompanyandthroughappreciationinthevalueofthestockofthecompany.Asaconditionofinvestingfundsinabusiness,venturecapitalistsoftenhavetherighttoreviewmanagementdecisionsand,insomecasesappointtheirownmanagerstooverseecertainaspectsofthebusiness.Whiletheentrepreneurtypicallyretainsday‐to‐daymanagementcontrolofthecompany,theventurecapitalisthassomecontroloverthestrategicdirectionofthebusiness.g.LoanPackaging‐TheMDSBDC'steamofloanconsultantsprovideslendingguidanceandloanpackagingservicesatlittleornocost.Thisspecificareaofconsultationincludesassistancewithfinancialprojections,thestatementofsourcesandusesoffunds,thebusinessplan,andthedeterminationofappropriatesourcesoffinancing.TheMDSBDCworkscloselywithareabanks;assistsviableclientswithbusinessplansandapplicationsprocess.WomenOnlyActivateProgram

Page 58: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

58

TermsofUse/Disclaimeronpage77

ActivateProgramTheActivateProgramisayearlongprogramsponsoredbyUMBCtotrainwomenwithsubstantialtechnicalorbusinessexperienceandtohelpcreatestart‐uptechnologycompaniesfrominventionsfromMarylandresearchinstitutionsandfederalagencies.TheProgramiscomprisedofthreephases.Thefirstphaseisdevelopedtoassistparticipantsinconductinganopportunityanalysiswherebytwopersonteamsareformedtoreviewandanalyzetheviabilityofpotentialbusinessopportunities.Thoseteamswiththebestpresentationtoareviewcommitteeoftheiropportunitywilladvancetothesecondphase.Thesecondphaseassiststheteamsincreatingadevelopedbusinessplan,alongwithadditionalteammemberstobepresentedtothereviewcommitteeforconsideration.Thefinalphaseistoassistthosefinalistswiththebestpresentationfromthesecondphaseandassistthemincommercializingandmarketingtheirbusinessplan.Toparticipatewomenwithbusinessortechnicalexperienceneedtoapplytotheclass.Formoreinformationontheprogram,pleasevisithttp://www.umbc.edu/activateNationalAssociationofWomenBusinessOwnersNationalAssociationofWomenBusinessOwners(“NAWBO”)isanationalorganizationwithseverallocalchaptersthatisintendedtoprovideadditionalresourcestoassistwomenbusinessownersinobtaininggreatereconomic,socialandpoliticalsuccess.NAWBOeventsincludebothgeneralnetworking,speakers’seriesandothereducationalseminars.Thereareannualconferences,onlinecommunitiesanddirectors,leadershipdevelopmentandothermembershipdiscountsandbenefits.Therearevariouslevelsofmembership;(i)At‐LargeMember(VotingMember)Businessandresidencearelocatedoutsideofalocalchapter’sorganizationterritory(45mileradius)(ii)Individual,partnerorstockholderwhoexercisesthepowertomakepolicydecisionsandisactivelyinvolvedintheday‐to‐daymanagementofthefirmFilesascheduleCorF,receivesIRSTaxForm1099fromclient(s),orfilescorporateorpartnershiptaxreturnsMaintainsanoffice(includinghomeoffices)orabusinessfacility(iii)EstablishedBusinessOwner(VotingMember)Ownsanequityinterestandactivelyparticipatesinabusinessasasoleproprietor,anactivepartnerofapartnershiporactivememberofalimitedliabilitycompany,anindependentcontractor,ora5%orgreatershareholderinacorporationFilesascheduleCorF,receivesIRSTaxForm1099fromclient(s),orfilescorporateorpartnershiptaxreturnsMaintainsanoffice(includinghomeoffices)orabusinessfacilityIsinvolvedinthepolicy‐makingprocessandoverallday‐to‐daymanagementofthebusinessHasbeenabusinessownerformorethantwo(2)yearsEmergingBusinessOwner(Non‐VotingMember)‐Afirsttimebusinessownerwithanewbusinesslessthantwo(2)yearsold,orwhohasnotyetstartedherbusiness(iv)SustainingMember(VotingMember)Ownsanequityinterestandactivelyparticipatesinabusinessasasoleproprietor,anactivepartnerofapartnershiporactivememberofalimitedliabilitycompany,anindependentcontractor,ora5%or

Page 59: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

59

TermsofUse/Disclaimeronpage77

greatershareholderinacorporationFilesascheduleCorF,receivesIRSTaxForm1099fromclient(s),orfilescorporateorpartnershiptaxreturnMaintainsanoffice(includinghomeoffices)orabusinessfacilityIsinvolvedinthepolicy‐makingprocessandoverallday‐to‐daymanagementofthebusinessHasbeenabusinessownerformorethantwo(2)yearsWishestosupporttheorganizationinalargermonetaryway(v)SupportingMember(Non‐VotingMember)Anon‐businessownerwhosubscribestotheobjectivesofNAWBOandwishtolendsupporttoNAWBOthroughmembership(vi)StudentMember(Non‐VotingMember)AnindividualwhoisregisteredfulltimeataschooloruniversitywhosubscribestotheobjectivesofNAWBOandintendstostartabusinessProofoffull‐timestudentstatusisrequiredMembershipDuesrangedependinguponthecategoryofmember,withlocalchapterduesfortheBaltimoreRegionof$90andnationalduesbetween$150and$350annually.Renewalsofmembershiparefrequentlydiscounted.FormoreinformationonthelocalBaltimoreRegionChapter,pleasecontact:NAWBOBaltimoreRegionalChapter2400BostonStreetSuite102Baltimore,MD21224Voice:410‐876‐0502Fax:410‐522‐5889L.ContentMcLaughlin,PresidentEmail:info@nawbobrc.orgBusinessSchoolsLoyolaCollegeinMarylandTheSellingerSchoolofBusinessandManagementBaltimore,Marylandhttp://www.loyola.edu/sellingerMorganStateUniversitySchoolofBusinessandManagementBaltimore,Marylandhttp://www.morgan.edu/School_of_Business_and_Management.htmlSalisburyUniversityPerdueSchoolofBusinessSalisbury,Marylandhttp://www.salisbury.edu/perdue/TowsonUniversityCollegeofBusinessandEconomicsTowson,Marylandhttp://wwwnew.towson.edu/cbe/UniversityofBaltimoreMerrickSchoolofBusinessBaltimore,Marylandhttp://www.ubalt.edu/template.cfm?page=1440UniversityofMarylandRobertH.SmithSchoolofBusinessCollegePark,Marylandhttp://www.rhsmith.umd.edu/JohnsHopkinsUniversityCareyBusinessSchoolBaltimore,Marylandhttp://carey.jhu.edu/SpeakerSeriesneedtocompleteTAXCREDITINCENTIVEPROGRAMSEnterpriseZonesMarylandDepartmentofBusinessandEconomicDevelopmenthasanenterprisezonetaxincentiveprogram.EligiblebusinessesthatlocateorexpandtheiroperationsindesignatedEnterpriseZonesorcreatenewjobsinEnterpriseZonesmayreceivevariousStateincomeorrealestatetaxcredits.Formoreinformationseehttp://www.choosemaryland.org/businessresources/pages/enterprisezones.aspx.Toqualify:(1)Thebusinessmustapplytothelocalzoneadministrationforcertification.(2)ThequalifiedemployeemusthavebeenhiredafterthebusinessislocatedintheEnterpriseZoneoraftertheEnterpriseZoneisdesignatedassuch;workforatleast

Page 60: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

60

TermsofUse/Disclaimeronpage77

35hoursperweekfor6months,earnatleast150%ofthefederalminimumwageand,spendatleast50%oftheworkdayeitherintheenterprisezoneoronactivitiesofthebusinessresultingfromitslocationintheenterprisezoneorfocusarea;ishiredafterthedatetheenterprisezonewascreatedorthedatethebusinessislocatedintheenterprisezoneorfocusarea,whicheverislater;andishiredtoanewposition.(3)Iftheemployeeiseconomicallydisadvantaged,thebusinessmustalsoobtaincertificationofeligibilityforthecreditfromtheMarylandDepartmentofLabor,LicensingandRegulation.Thetaxcreditsarebasedonthewagesduringthetaxyeartoeachqualifiedemployee.EmpowermentZones(federal)MarylandDepartmentofBusinessandEconomicDevelopmentDivisionofBusinessDevelopment,TaxIncentivesGrouphasanEmpowermentZonetaxincentive.AfederalEmpowermentZone,oneofonlysixinthenation,encompasses6.8squaremilesinthreeseparatelocationsofBaltimoreCity,twoofwhicharezonedforheavyindustrialuse.Formoreinformation,pleaseseehttp://www.hud.gov/offices/cpd/economicdevelopment/programs/rc/index.cfm.OneMarylandEconomicDevelopmentRealPropertyTaxCreditBusinessesthatestablishorexpandabusinessfacilityinapriorityfundingareaoraspartofaMarylandBoardofPublicWorksprojectsandarelocatedincertain“distressed”Marylandcounties,maybeentitledtotaxcreditsrelatedtoneworexpandedfacilities.Thecreditsmaybeappliedagainstcorporateincometax,personalincometaxorinsurancepremiumstax,butmaynotbeappliedtomorethanonetype.Formoreinformation,pleaseseehttp://business.marylandtaxes.com/taxinfo/taxcredit/onemd/default.asp.Eligibility.(1)BusinessesthatestablishorexpandabusinessfacilityinapriorityfundingareaoraspartofaprojectapprovedbytheBoardofPublicWorks,andthatarelocatedina"distressed"Marylandcounty,maybeentitledtoataxcreditforcostsrelatedtotheneworexpandedfacility.A“distressed”countyhas,forthemostrecent24‐monthperiod,anaveragerateofunemploymentthatis150percenthigherthanthestatewideaverageoranaverageper‐capitapersonalincomethatisequaltoorlessthan67percentofthestatewideaverage,andincludesacounty(includingBaltimoreCity)thatnolongermeetsoneoftheserequirements,butdidsoatsometimeduringthepreceding12‐months.(2)BusinessesarerequiredtonotifytheMarylandDepartmentofBusinessandEconomicDevelopmentofitsintenttoseekcertificationbeforeeithernewemployeesarehiredtofillqualifiednewpositionsoreligiblecostsareincurred.(3)Inordertoqualifythebusinessmustcreateatleast25positionsattheneworexpandedbusinessfacilityoveratwoyearperiodthatare:(a)Full‐time.(b)Ofindefiniteduration.(c)Paidatleast150percentofthefederalminimumwage.(d)LocatedinaqualifieddistressedcountyinMaryland.(e)Filled.(4)Toqualifyfortheprojecttaxcredit,thebusinessmustalsospendatleast

Page 61: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

61

TermsofUse/Disclaimeronpage77

$500,000inprojectcostsontheproject.Nominimumexpenditureisrequiredforthe"start‐up"taxcredit.ThebusinessmustalsosubmitacopyofthecertificationfromtheDepartmentofBusinessandEconomicDevelopmentwiththetaxreturn.JobCreationTaxCreditBusinessesthatexpandorestablishnewfacilitiesinMarylandthatresultsinthecreationofnewjobsmaybeentitledtoataxcreditbaseduponthenumberofpositionscreatedorthewagespaidtothenewemployees.Formoreinformation,pleaseseehttp://business.marylandtaxes.com/taxinfo/taxcredit/jobcreation/default.asp.Toqualifyforthecredit,businessesmustcreateatleast60newfull‐timepositions,andifthepositionsarehighlypaid,itmustcreateatleast30positions.Iftheneworexpandedfacilityislocatedinapriorityfundingarea,thenumberofnewpositionsthecompanymustcreateisreducedto25.Beforefillingthesenewpositions,thecompanymustnotifytheDepartmentofBusinessandEconomicDevelopmentofitsintentiontoseekcertification.Thenewpositionsmustbe:(1)Full‐time.(2)Permanent.(3)Paidatleast150percentofthefederalminimumwage.(4)LocatedinMaryland.(5)Filled.ResearchandDevelopmentTaxCreditsBusinessesthatincurqualifiedresearchanddevelopmentexpensesinMarylandareentitledtoacredit,butthetotalcreditsforallbusinessescannotexceed$6millionperyear,andisavailablefortaxyearsonorafterJanuary1,2008,butbeginningbeforeJanuary1,2011.Formoreinformation,pleaseseehttp://business.marylandtaxes.com/taxinfo/taxcredit/randd/default.asp.Thecreditmaybetakenagainstcorporateincometaxorpersonalincometaxes.Toqualify,thebusinessmustinvestinresearchanddevelopmentactivitiesinMarylandduringthetaxyearandapplyforthecreditwiththeMarylandDepartmentofBusinessandEconomicDevelopmentby15oftheyearfollowingthetaxyearinwhichtheexpenseswereincurred.TheMarylandDepartmentofBusinessandEconomicDevelopmentwillcertifytheamountofcreditavailabletothebusinessbyDecember15.Therearetwotypesofresearchanddevelopmenttaxcreditsavailabletobusinesses:(1)BasicResearchandDevelopmentCredit:3percentoftheMarylandqualifiedresearchanddevelopmentexpensespaidduringthetaxyear,uptotheMarylandbaseamount.(2)GrowthResearchandDevelopmentCredit:10percentoftheMarylandqualifiedresearchanddevelopmentexpensespaidduringtheyearthatexceedtheMarylandbaseamount.hebusinessmustfileanamendedincometaxreturn(Form500Xor502X)andsubmitacopyofthecertificationreceivedfromtheMarylandDepartmentofBusinessandEconomicDevelopmentwiththeamendedreturn.Additionalformswouldneedtobeattacheddependingonwhetherthecreditisbeingappliedtoward

Page 62: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

62

TermsofUse/Disclaimeronpage77

corporateorpersonaltaxes.BioHeatingOilTaxCreditBusinessesmayclaimacreditforeachgallonofheatingoilblendedwithbiodieselpurchasedforspaceorwaterheating.Foranytaxyear,thecreditallowedunderthissectionmaynotexceed$500,orthestateincometaxforthattaxyear.ThecreditisavailableforthetaxyearsbeginningonorafterJanuary1,2008,butbeforeJanuary1,2013.Formoreinformatoin,pleaseseehttp://energy.maryland.gov/residential/bioheatgrant.htmlandhttp://business.marylandtaxes.com/taxinfo/taxcredit/bioheatingoil/default.asp.Thecreditmaybetakenagainstcorporateincometaxorpersonalincometax.Thebusinessmustpurchase“Bio–heatingoil”withablendofatleast5percentbiodiesel.BusinessmustreceiveaninitialcreditcertificatefromtheMarylandEnergyAdministration(MEA)toclaimacreditagainstthestateincometaxforataxyearinanamountequaltothreecentsforeachgallonofbio–heatingoilpurchasedforspaceorwaterheating.Ifthecreditismorethanthetaxliability,theunusedcreditmaynotbecarriedforwardtoanyfuturetaxyears.BiotechnologyInvestmentIncentiveTaxCreditBusinessesmaybeallowedataxcreditagainstcorporateorpersonalincometaxofupto50percentoftheamountcontributedduringthetaxyeartoaqualifiedMarylandbiotechnologycompany.SoleProprietorships,corporationsandpassthroughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Formoreinformation,pleaseseehttp://business.marylandtaxes.com/taxinfo/taxcredit/biotech.aspandhttp://www.choosemaryland.org/businessresources/pages/biotechnologyinvestmenttaxcredit.aspx.Qualifiedinvestorsmustcontributeatleast$25,000,incashorcash‐equivalent,toa“qualifiedbiotechnologycompany”thatiscertifiedbytheMarylandDepartmentofBusinessandEconomicDevelopmentbasedonanumberofcriteria.Qualifiedinvestorsmustalsoberequiredtofileanincometaxreturntoanyjurisdiction.Creditsmaybeclaimedfornomorethan$250,000perinvestmentinaqualifiedbiotechnologycompany.DBEDmaynotcertifytaxcreditsforinvestmentsinasinglequalifiedbiotechnologycompanythatareintheaggregatemorethan15percentofthetotalamountappropriatedtotheMarylandBiotechnologyInvestmentTaxCreditReserveFundforthatfiscalyear.DBEDmaynotissueinitialcreditcertificatesinexcessofthemountappropriatedtotheReserveFundforthatfiscalyearinthestatebudgetasapprovedbytheGeneralAssembly.Aqualifiedbiotechnologycompanymusthave:•ItsheadquartersandbaseofoperationsinMaryland;•Fewerthan50full‐timeemployees.•Nopubliclytradedsecurities;and•Beeninactivebusinessnolongerthan10yearsor12years,ifapprovedbyDBED.Aleast30daysbeforemakinganinvestment,thebusinessmustsubmitaninitialcreditcertificateapplicationtoDBED.Uponapproval(within30daysofDBED’sreceiptoftheapplication),theapplicantwillreceiveaninitialcreditcertificate

Page 63: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

63

TermsofUse/Disclaimeronpage77

statingtheamountofthetaxcreditandwillhave30daystomaketheinvestment.Withinthefollowing10days,theinvestormustnotifyDBEDthattheinvestmenthasbeenmade.Afinalcreditcertificatewillbeissuedtotheapplicantstatingtheamountofthetaxcredittowhichtheapplicantisentitled.Acopyofthefinalcreditcertificatemustbefiledwiththetaxpayer’sincometaxreturn.Thecreditallowedis50percentoftheamountcontributedduringthetaxyear,nottoexceed$500,000.Theamountinexcessofthestatetaxliabilitymayberefunded.ThetotalamountofcreditsapprovedbyDBEDeachyearislimited;initialcreditcertificateswillbeissuedonafirst‐come‐first‐servedbasis.Aportionofthiscreditmaybesubjecttorecaptureundercertaincircumstances.BusinessesthatCreateNewJobsCreditSoleproprietorships,corporationsandpass‐throughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustslocatedinMarylandthatcreatenewpositionsandestablishorexpandbusinessfacilitiesinthestatemaybeentitledtoataxcreditagainstcorporateincometax,personalincometaxorinsurancepremiumstax.Thecreditmaybeappliedtoonlyoneofthesetaxtypesinadditiontothepropertytax.Tobeeligibleforthetaxcredit,businessesmustfirsthavebeengrantedapropertytaxcreditbyalocalgovernmentofMarylandforcreatingthenewjobs.Formoreinformation,pleaseseehttp://business.marylandtaxes.com/taxinfo/taxcredit/newjob/default.asp.Thebusinessmustcreateatleast25newpositionsaspartoftheneworexpandedbusinessfacilityinMaryland(5,000squarefeetormore).Businesseslocatedinsmallercounties(populationof30,000orless)mustcreateatleasttennewpositions.AnenhancedcreditisinsteadavailableforbusinessesthatcreateorexpandanewbusinessfacilityinMarylandof250,000squarefeetormoreand:(1)Employ2,500employees(2)Create500newpositionsthatpayatleast150percentoftheminimumwageOR(3)Create1,250newpositionsthatarepaidatleast150percentoftheminimumwage.InMontgomeryCountyonly,abusinesscan:(1)Spendatleast$150milliontoobtainatleast700,000squarefeetofneworexpandedbusinesspremises(throughthepurchase,construction,orleaseofanewpremises);and(2)Employatleast1,100individualsincludingatleast500innewpositions.Allofthepositionsmustreceiveemployer‐providedsubsidizedhealthcarebenefits,bepaidatleast150percentoftheminimumwage,andbelocatedinorneighboringthenew,expandedorrenovatedpremises.Thenewpositionsmustbeallofthefollowing:(1)LocatedinMaryland.(2)PartoftheneworexpandedbusinessfacilityinMaryland.(3)Permanent.(4)Fulltimeofindefiniteduration(ForMontgomeryCounty(andWashingtonCountyfortaxyears2007andlater),thepositioncanbeacontractpositionofdefinitedurationlastingatleast12monthswithanunlimitedrenewaloption).(5)Filledforatleastoneyear.

Page 64: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

64

TermsofUse/Disclaimeronpage77

Thebusinessmustthenapplyto,andreceivecertificationfrom,thelocalgovernmentinwhichthefacilityislocatedforapropertytaxcredit.ThecountyorcitygovernmentwillnotifytheStateDepartmentofAssessmentsandTaxation(SDAT)thatthepropertytaxcredithasbeenapproved.SDATwillcalculateandcertifytheamountoftheallowabletaxcredittotheComptroller.Thecreditsarecalculatedasapercentageofthelocalpropertytaxliabilityontheneworexpandedportionofthefacility.Thosepercentagesareasfollows:(1)PropertyTaxCredit:•1stand2ndtaxableyears:52percent•3rdand4thtaxableyears:39percent•5thand6thtaxableyears:26percent•Remainingtaxableyears:0percent(2)Creditagainstthepersonalorcorporateincometax,ortheinsurancepremiumstax:•1stand2ndtaxableyears:28percent•3rdand4thtaxableyears:21percent•5thand6thtaxableyears:14percent•Remainingtaxableyears:0percentTheenhancedpropertytaxcreditisaflatpercentageof58.5percentforthelocalpropertytaxcreditand31.5percentforthestatetaxcreditineachofthefirst12taxyears.Ifthecreditismorethanthestatetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxableyears.Withrespecttoclaimingthecreditagainstinsurancepremiumtaxes,documentationofthecreditmustbemaintainedbythetaxpayerintheirfilesandbemadeavailabletotheInsuranceCommissioner,onrequest,inaccordancewithCOMAR31.06.04.03.Thedocumentationshouldincludedocumentsfromtheagencygrantingthecredit,andalistofthenamesandtelephonenumbersforthetaxpayer'sstaffwhoaredirectlyinvolvedingrantingthecredits.Allinformationshallberetainedforaminimumofthreeyearsfromthedateofthefilingofthefinaltaxreturnonwhichthecreditistaken.CellulosicEthanolTechnologyResearchandDevelopmentTaxCreditSoleproprietorships,corporationsandpassthroughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstruststhatincurqualifiedresearchanddevelopmentexpensesforcellulosicethanoltechnologyinMarylandareentitledtoataxcredit.Thetotalcreditsforallbusinessesmaynotexceed$250,000peryear.ThiscreditisavailablefortaxyearsbeginningafterDecember31,2007,butbeforeJanuary1,2017.Thecreditmaybetakenagainstcorporateincometaxorpersonalincometax.ThebusinessmustinvestinresearchanddevelopmentactivitiesinMarylandrelatedto“CellulosicEthanolTechnology,”whichistechnologythatisusedtodevelopcellulosicbiomassforconversiontoethanolfuel.ThebusinessmustalsosubmitanapplicationforthecredittotheMarylandDepartmentofBusinessandEconomicDevelopment(DBED)bySeptember15ofthecalendaryearfollowingtheendofthetaxyearinwhichthequalifiedresearchand

Page 65: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

65

TermsofUse/Disclaimeronpage77

developmentexpenseswereincurred.DBEDcertifytheamountofcreditavailabletothebusinessbyDecember15.Theamountofthetaxcreditisequalto10percentofthequalifiedresearchanddevelopmentexpensespaidorincurredduringthetaxyear.DBEDmaynotapprovemorethan$250,000increditsforanycalendaryear.Iftheaggregateamountofcreditsappliedforexceeds$250,000,eachapplicantwillreceiveaproratedshareofthetotalcreditamount.Ifthecreditismorethanthestatetaxliability,theunusedcreditmaybecarriedforwardforthenext15years.Thebusinessmustfileanamendedincometaxreturn(Form500Xor502X)andsubmitacopyofthecertificationreceivedfromtheMarylandDepartmentofBusinessandEconomicDevelopmentwiththeamendedreturn.Additionalformswouldneedtobeattacheddependingonwhetherthecreditisbeingappliedtowardcorporateorpersonaltaxes.Formoreinformation,pleaseseehttp://www.choosemaryland.org/businessresources/Pages/CellulosicEthanol.aspxandhttp://business.marylandtaxes.com/taxinfo/taxcredit/cullulosicethanol/default.asp.CleanEnergyIncentiveTaxCreditBusinessesthatusecertainrenewableenergysourcesorwastematerialstoproduceelectricitythatissoldtoanunrelatedpersonmaybeentitledtoanincometaxcredit.Thefacilitymustbeplacedinservice,orco‐firingwithcoalmustbegin,onorafterJanuary1,2006,butbeforeJanuary1,2011.Soleproprietorships,corporationsandpass‐throughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Thebusinessmustproduceelectricityduringthetaxyearusingprimarily"qualifiedenergyresources"(seeInternalRevenueCodeSection45)whichincludesanysolid,non‐hazardous,cellulosicwastematerialthatissegregatedfromotherwastematerialsandisderivedfromthefollowing:(1)Forest‐relatedresources,includingmillresidues(exceptsawdustandwoodshavings),forestthinnings,slash,orbrush,butexcludingold‐growthtimber.(2)Wastepallets,crates,dunnage,landscapeorright‐of‐waytrimmings.(3)Agriculturalsources(orchardtreecrops,vineyard,grain,legumes,sugar,andothercropby‐productsorresidues).“Qualifiedenergyresources”alsoincludesmethanegasorothercombustiblegasesresultingfromthedecompositionoforganicmaterialsfromanagriculturaloperationorfromalandfillorawastewatertreatmentplantusingeitheranaerobicorthermaldecomposition,oracombinationofboth.ThebusinessmustapplyforandreceiveaninitialcreditcertificatefromtheMarylandEnergyAdministration(MEA)beforeclaimingthiscredit.TheinitialcreditcertificatemuststatetheamountofelectricitythetaxpayerexpectstoproduceinaqualifiedMarylandfacilityoverthefive‐yearperiodspecifiedintheinitialcreditcertificate.Thetotalamountofthecreditstatedintheinitialcreditcertificatecannotexceed$2.5million.Thecreditis0.85centsforeachkilowatthourofelectricityproducedataMarylandfacilityusingqualifiedenergyresourcesduringthefive‐yearperiodafterthefacility

Page 66: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

66

TermsofUse/Disclaimeronpage77

isoriginallyplacedinservice.Ifthefacilityproduceselectricityfromqualifiedenergyresourcesco‐firedwithcoal,thecreditisreducedto0.5centsperkilowatthourofelectricityproducedduringthefive‐yearperiodbeginningonthedateoftheinitialco‐firing.Thecreditclaimedeachyearcannotexceedone‐fifthofthecreditamountstatedintheinitialcreditcertificate.Ifatleastanaverageof10percentofthemaximumcreditamountstatedontheinitialcreditcertificateisnotclaimedoverathree‐yearperiod,theMEAmaycancelaportionoftheamountstatedontheinitialcreditcertificate.Ifthecreditismorethanthestatetaxliability,theunusedcreditmaybecarriedforwardforthenexttentaxyears.TheMEAcannotissueaninitialcreditcertificateafterDecember31,2010,andthetotalofthemaximumcreditamountsoninitialcreditcertificatesissuedthroughthatdatecannotexceed$25million.AcopyoftheinitialcreditcertificateissuedbytheMEAmustbesubmittedwiththeincometaxreturn.Formoreinformation,pleaseseeRevenueAdministrationDivisionComptrollerofMarylandAnnapolis,MD21411‐0001Phone:410‐260‐7980fromCentralMaryland,1‐800‐MDTAXESfromelsewhereE‐mail:[email protected]:http://business.marylandtaxes.com/taxinfo/taxcredit/cleanenergy/default.aspChrisRiceMarylandEnergyAdministration60WestStreet,Suite60Annapolis,Md.21401Phone:410‐260‐76551‐800‐72ENERGYE‐mail:[email protected]:http://energy.maryland.gov/residential/cleanenergygrants.htmlCommuterTaxCreditMaryland‐basedbusinessesthatprovidecommuterbenefitsforemployeesmaybeentitledtoataxcreditforaportionoftheamountspaidduringthetaxableyear.Commuterbenefitsincludecertaincostsforanemployee'straveltoandfromhomeandtheworkplace,aGuaranteedRideHomeprogramoraparking"Cash‐Out"program.Thecreditmaybetakenagainstcorporateincometax,personalincometax,stateandlocaltaxeswithheld(fortax‐exemptorganizations)orinsurancepremiumstax.Thesamecreditmaynot,however,beappliedtomorethanonetaxtype.Thecompanymustpayaportionofthecostofanemployee'stravelbetweentheemployee'shomeandworkplace,includingthepurchaseoftransitinstruments(tickets,passes,vouchers,farecards,smartcardsandtokens).Inaddition,theworkplacemustbelocatedinMarylandandtravelmusttakeplaceineither:(1)AmasstransitvehiclesuchasanMTABus,MTACommuterBus,MTALightRail,MARCTrain,WMATAMetrobus,WMATAMetrorail,orotherqualifiedmasstransitsystem;or(2)Avan‐poolwhichcanseatatleasteightadults,isusedprimarily(80percentoftotalannualmileage)totransportindividualsbetweenhomeandtheworkplaceandisusedprimarily(80percentoftotalannualmileage)totransportatleastfouremployeespertrip.Inaddition,abusinessmayalsoqualifyforacreditforaportionofthecostpaidtoprovidetheiremployeesaGuaranteedRideHomeand/oraparking"Cash‐Out"program.Eachtaxyear,beforebusinessesfileforthenewCommuterTaxCreditagainstanyoftheapplicabletaxes,theymusthaveaCommuterTaxCreditregistrationformonfile

Page 67: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

67

TermsofUse/Disclaimeronpage77

withtheMarylandMassTransitAdministration.Theapplicationisavailableonlineathttp://www.commuterchoicemaryland.com.Thetaxcreditis50percentofthecostofprovidingthecommuterbenefitsuptoamaximumof$50permonth(basedona$100employercontribution)foreachemployee.Ifthecreditismorethanthestatetaxliability,theunusedcreditmaynotbecarriedforwardtoanyothertaxyear.BusinessesmustsubmittheMarylandCommuterTaxCreditregistrationformtotheMTA.DocumentationofthecreditforpurposesofreceivingacreditagainstinsurancepremiumstaxshallbemaintainedbythetaxpayerintheirfilesandbemadeavailabletotheInsuranceCommissioner,onrequest,inaccordancewithCOMAR31.06.04.03.Thedocumentationshouldincludedocumentsfromtheagencygrantingthecreditandalistofthenamesandtelephonenumbersforthetaxpayer'sstaffwhoaredirectlyinvolvedingrantingthecredits.Allinformationshallberetainedforaminimumofthreeyearsfromthedateofthefilingofthefinaltaxreturnonwhichthecreditistaken.Formoreinformation,pleaseseehttp://business.marylandtaxes.com/taxinfo/taxcredit/commuter/default.asp.CommunityInvestmentTaxCreditBusinessesthatcontributecashorgoodstoapprovedprojectsoperatedbytaxexemptorganizations(underInternalRevenueCodesection501(c)(3))areeligibleforataxcreditofupto$250,000.Thiscreditisinadditiontoanycharitablecontributiondeductionthatisallowedforthesecontributionsonboththestateandfederalincometaxreturns.Thecreditmaybetakenagainstcorporateincometax,personalincometax,insurancepremiumstaxorpublicservicecompanyfranchisetax.Thesamecreditmaynot,however,beappliedtomorethanonetaxtype.Soleproprietorships,corporationsandpass‐throughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Beginningin2010,individuals,includingfiduciaries,whoarenotbusinessentitiesmayapplyforandreceiveataxcreditforcontributionstoapprovedprojects.Toqualifyforthecredit:Thebusinessmustdonateatleast$500inmoneyorgoodstoanapprovedprojectanddocumentthevalueofthecontribution.Thedocumentationmaybeeitherareceiptorcertificationofvalueofusedgoodsfromanindependentandunrelatedthirdparty.Thebusinessmustalsoattachacopyofthefullyexecutedcertificationtothetaxreturn.Howthecreditiscalculated:Thecreditis50percentofthevalueofthedonation.Eachbusinessmayclaimacreditofupto$250,000beginningwithtaxyearsonorafter1/1/2007.Thetotalcontributionseligibleforthetaxcreditsforallapprovedprojectsmaynotbemorethan$2millionperfiscalyear.Ifthecreditismorethanthetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxyears.Documentationrequired:

Page 68: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

68

TermsofUse/Disclaimeronpage77

Corporateincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form500).Personalincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form502or505).Ifthebusinessisapass‐throughentity,Form500CRmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytoitsmembersmustseparatelystatetheirsharesofthecredit.IndividualsorentitiesmustattachthisstatementtotheForm500CRsubmittedwiththeirpersonal(Form502or505),corporate(Form500)orpass‐throughentity(Form510)incometaxreturns.Insurancepremiumstax:Thecontributorandthenon‐profitpartnermustcompletetheCertificationofContributionforTaxCreditandsubmitittotheMarylandDepartmentofHousingandCommunityDevelopmentalongwithacopyofthecheckordocumentationofthevalueofdonatedgoods.BusinessesclaimingthecreditagainstthistaxmustincludetheirNorthAmericanIndustryClassificationSystem(NAICS)numberinthespaceprovidedonthatform.Publicservicecompanyfranchisetax:FormAT3‐74mustbesubmittedwiththefranchisetaxreturn(SDATForms11or11T).Formoreinformation,contact:KarenM.ForbesAssistantDirector,CommunityAccessandPartnershipMarylandDepartmentofHousingandCommunityDevelopmentDivisionofNeighborhoodRevitalization10N.CalvertStreet,Suite444Baltimore,Md.21202Phone:410‐209‐5800E‐mail:[email protected]:http://www.neighborhoodrevitalization.orgEmployer‐ProvidedLong‐termCareInsuranceCreditEmployerswhoprovidelong‐termcareinsuranceaspartofanemployeebenefitpackagemayclaimacreditforcostsincurred.Thecreditmaybetakenagainstcorporateincometax,personalincometax,insurancepremiumstaxorpublicservicecompanyfranchisetax.Thesamecreditmaynot,however,beappliedtomorethanonetaxtype.Soleproprietorships,corporationsandpass‐throughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Toqualifyforthecredit:Thecompanymustprovidelong‐termcareinsurancebenefitstooneormoreemployeesduringthetaxableyearaspartofanemployeebenefitpackage.Howthecreditiscalculated:Thecreditallowedis5percentofthecosts.Thetotalclaimedforataxableyearforallemployeesmaynotexceed$5,000,or$100peremployee,whicheverisless.Ifthecreditismorethanthetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxyears.Documentationrequired:

Page 69: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

69

TermsofUse/Disclaimeronpage77

Corporateincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form500).Personalincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form502or505).Ifthebusinessisapass‐throughentity,Form500CRmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytoitsmembersmustseparatelystatetheirsharesofthecredit.IndividualsorentitiesmustattachthisstatementtotheForm500CRsubmittedwiththeirpersonal(Form502or505),corporate(Form500)orpass‐throughentity(Form510)incometaxreturn.Insurancepremiumstax:DocumentationofthecreditshallbemaintainedbythetaxpayerintheirfilesandbemadeavailabletotheInsuranceCommissioner,onrequest,inaccordancewithCOMAR31.06.04.03.Thedocumentationshouldincludedocumentsfromtheagencygrantingthecreditandalistofthenamesandtelephonenumbersforthetaxpayer'sstaffwhoaredirectlyinvolvedingrantingthecredits.Allinformationshallberetainedforaminimumofthreeyearsfromthedateofthefilingofthefinaltaxreturnonwhichthecreditistaken.Publicservicecompanyfranchisetax:FormAT3‐74mustbesubmittedwiththefranchisetaxreturn(SDATforms11or11T).Formoreinformation,contact:RevenueAdministrationDivisionComptrollerofMarylandAnnapolis,MD21411‐0001Phone:410‐260‐7980fromCentralMaryland,1‐800‐MDTAXESfromelsewhereE‐mail:[email protected]:http://business.marylandtaxes.com/taxinfo/taxcredit/longtermcare/default.aspor:StateDepartmentofAssessmentsandTaxation301W.PrestonStreetBaltimore,MD21201‐2395Phone:410‐767‐1191E‐mail:taxcredits@dat.state.md.usEmploymentOpportunityTaxCreditBusinessesthathireanindividualwhoisreceivingAidtoFamilieswithDependentChildren(AFDC)orFamilyInvestmentProgram(FIP)entitlementsmaybeentitledtoataxcreditforwagespaidtotheemployeeandforchildcareandtransportationexpensespaidonbehalfoftheemployee.ThecreditmaybeclaimedforindividualshiredbeforeJuly1,2009.Thecreditmaybetakenagainstcorporateincometax,personalincometax,stateandlocaltaxeswithheld(forcertaintax‐exemptorganizationsonly),insurancepremiumstaxorpublicservicecompanyfranchisetax.Thesamecreditmaynot,however,beappliedtomorethanonetaxtype.ThecompanymusthireatleastoneemployeethatreceivedAFDCorFIPpaymentsforanythreemonthsduringthe18‐monthperiodbeforeemploymentbythecompany.Theemployeecannotbecloselyrelatedtotheownersofthebusiness.CertificationmustbeobtainedfromtheDepartmentofLabor,LicensingandRegulationthattheindividualisaqualifiedemployee.

Page 70: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

70

TermsofUse/Disclaimeronpage77

Thecreditisallowedforthefirsttwoyearsofemploymentoftheindividualforboththewagespaidandthechildcareortransportationexpensespaidonbehalfoftheemployeeasfollows:(1)Firstyear(a)Wages:30percentofthefirst$6,000paidinthefirstyear(amaximumallowablecreditof$1,800).(b)Childcareortransportationexpenses:Upto$600ofexpensespaidinthefirstyear.(2)Secondyear(a)Wages:20percentofthefirst$6,000ofwagespaidinthesecondyear(amaximumallowablecreditof$1,200).(b)Childcareortransportationexpenses:Upto$500ofexpensespaidinthesecondyear.IftheemployeehasbeenarecipientofAFDCorTemporaryCashAssistanceforany18monthsduringthelast48monthsandisemployedbythebusinessforafullyear,thecreditincreasesto40percentofthefirst$10,000ofwagespaidtotheemployeeduringthefirstyearofemployment.Thecreditforchildcareortransportationexpensesmayalsobetakenforthefirstandsecondyearsasshownabove.Ifthecreditismorethanthestatetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxyears.Formoreinformation,pleaseseehttp://www.dllr.state.md.us/employment/eotc.shtmlandhttp://business.marylandtaxes.com/taxinfo/taxcredit/employment/default.asp.GreenBuildingTaxCreditNOTE:ThisinformationreflectsMarylandlawregardingtheGreenBuildingsTaxCredit.However,allcreditshavebeenallocatedthroughthecurrentprogram'send.Unlesstheprogramisextendedorreceivesadditionalfunding,noadditionalcreditsmaybeauthorized.HeritageStructureRehabilitationTaxCreditAsofJune1,2010,theSustainableCommunitiesTaxCreditreplacestheHeritageStructureRehabilitationCredit.Acreditmaybeallowedforsubstantialexpendituresincurredina24‐monthperiodtorehabilitateacertifiedheritagestructurelocatedinMaryland.Thecreditisavailableforowner‐occupiedresidentialproperty,aswellasincome‐producingproperty.CreditsmaynotbeauthorizedafterJune30,2010.Thecreditmaybetakenagainstcorporateincome,personalincomeorinsurancepremiumtax.Soleproprietorships,corporations,tax‐exemptnonprofitorganizationsandpassthroughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Toqualifyforthecredit:ThebusinessmustcompleteaheritagepreservationcertificationapplicationandsubmittheapplicationforapprovaltotheMarylandHistoricalTrust(MHT).AftercertificationbyMHT,theformisreturnedtoyou.Acopyofthecertifiedform(Part3)fromMHTmustaccompanyyourMarylandincometaxreturn.Howthecreditiscalculated:Thecreditis20percentofthetotalexpendituresincurredduringthe24monthrehabilitationperiod.Fortherehabilitationofcommercialstructures,thecredit

Page 71: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

71

TermsofUse/Disclaimeronpage77

cannotbemorethanthemaximumamountspecifiedundertheinitialcreditcertificate,whichisbasedonestimatedexpenditures.IftheapplicationwassubmittedtoMHTbeforeJune1,2002,thecreditbasedonactualexpenditurescanbeupto$250,000morethantheamountshownontheinitialcreditcertificate.Thecreditisclaimedintheyearinwhichtherehabilitationiscompleted;however,itcannotbeclaimeduntilthePart3certificationisapproved.ForpropertycertifiedbeforeJuly1,2001,abusinesscouldhavereceivedamortgagecreditcertificate.Inlieuoftakingthecredit,thecertificatemaybetransferredtothemortgageholderwhomaythentakeacreditagainsttheirincometaxinanamountequaltothefacevalueofthecertificate.ForcertificationsreceivedafterJune30,2001,theamountinexcessofthestatetaxliabilitycanberefunded.Creditsfortaxyears2002andlaterarelimitedto$3million.Fornon‐commercialproperties,thecreditis$50,000perpropertyforapplicationsreceivedbyMHTafterJune30,2004.TherehabilitationofastructurethatreceivedapprovalbytheMHTonorbeforeFebruary1,2001,issubjecttotheprovisionsofthelawineffectpriortothe2002legislativechanges.TheMHTwillnotacceptapplicationsfortheapprovalofplansforcommercialrehabilitationsifasubstantialpartoftheworkhasbeencompletediftheapplicanthasalreadysubmittedthreeormoreapplicationsforacombinedtotalofmorethan$500,000inthatyear.ThetotalamountofcreditsapprovedbyMHTforpropertieslocatedincertainareasofthestateduringeachfiscalyearissubjecttocertainlimitations.Apro‐ratedpercentageofthecreditissubjecttorecaptureifdisqualifyingworkisperformedduringafive‐yearperiod,beginningwiththeyearinwhichthecertifiedrehabilitationwascompleted.Documentationrequired:Corporateincometax:Form502Hmustbecompletedandsubmittedwiththeincometaxreturn(Form500)alongwiththeMHTcertification.Personalincometax:Form502Hmustbecompletedandsubmittedwiththeincometaxreturn(Form502or505)alongwiththeMHTcertification.Ifthebusinessisapass‐throughentity,Form502Hmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytomembersmustseparatelystatetheirsharesofthecredit.IndividualsorentitiesmustattachthisstatementtotheForm502Hsubmittedwiththeirpersonal(Form502or505),corporate(Form500)orpassthroughentity(Form510)incometaxreturns.Insurancepremiumstax:DocumentationofthecreditshallbemaintainedbythetaxpayerintheirfilesandbemadeavailabletotheInsuranceCommissioner,onrequest,inaccordancewithCOMAR31.06.04.03.Thedocumentationshouldincludedocumentsfromtheagencygrantingthecreditandalistofthenamesandtelephonenumbersforthetaxpayer'sstaffwhoaredirectlyinvolvedingrantingthecredits.Allinformationshallbe

Page 72: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

72

TermsofUse/Disclaimeronpage77

retainedforaminimumofthreeyearsfromthedateofthefilingofthefinaltaxreturnonwhichthecreditistaken.Formoreinformation,contact:CollinIngrahamMarylandHistoricalTrust100CommunityPlaceCrownsville,MD21032‐2023Phone:410‐514‐7628E‐mail:[email protected]:http://mht.maryland.gov/taxcredits_resources.htmlLong‐termEmploymentofEx‐FelonsTaxCreditBusinessesthatoperateinMarylandandhireoneormoreex‐felonsduringtheperiodfromJanuary1,2007,throughDecember31,2011,whoareemployedbythebusinessforatleastoneyear,maybeentitledtoacredit.Thecreditmaybetakenagainstcorporate,personalincometax,orstateandlocaltaxeswithheld(certaintaxexemptorganizationsonly).Thecreditmaynotbeappliedtomorethanonetaxtype.Soleproprietorships,corporations,pass‐throughentities(partnerships,subchapterScorporations,limitedliabilitycompanies,businesstrusts)andtax‐exempt,nonprofitorganizationsmayclaimthetaxcredit.Toqualifyforthecredit:Thecompanymusthireatleastoneex‐felonbetweenJanuary1,2007,andDecember31,2011,andemploythatpersonforaminimumofoneyear.ThecompanymustalsoobtaincertificationfromtheMarylandDepartmentofLabor,LicensingandRegulationthattheindividualisaqualifiedex‐felon.Howthecreditiscalculated:Forthefirstyear,thecreditis30percentofthefirst$6,000paidtoaqualifiedindividualwithamaximumcreditof$1,800.Inthesecondyear,thecreditis20percentofthefirst$6,000paidwithamaximumcreditof$1,200.Ifthecreditismorethanthestatetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxyears.Atax‐exemptorganizationmayestimatetheamountofthetaxcreditforqualifyingemployeesforthetaxableyear.Thetotalamountoftheestimatedcreditshouldbedividedevenlyoverthenumberofperiodsforfilingwithholdingreturns(FormMW506).Forexample,ifquarterlyreturnsarerequired,thenthetotalestimatedcreditshouldbedividedbyfour.EachpaymenttotheComptrollerwouldbereducedbytheprorataamountofthecredit.Alternatively,thetax‐exemptorganizationcouldapplythecreditagainstthetaxonunrelatedbusinesstaxableincome.Documentationrequired:Corporateincometax:Form500CRmustbecompletedandsubmittedwithincometaxreturn(Form500)Personalincometax:Form500CRmustbecompletedandsubmittedwithincometaxreturn(Form502orForm505).Ifthebusinessisapass‐throughentity,Form500CRmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytoitsmembersmustseparatelystatetheirsharesofthecredit.IndividualsorentitiesmustattachthisstatementtotheForm500CRsubmittedwiththepersonal(Form502or505),corporate(Form500)orpass‐throughentity(Form510)

Page 73: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

73

TermsofUse/Disclaimeronpage77

incometaxreturns.Stateandlocalincometaxeswithheld:Form500CRmustbesubmittedwithFormMW508,MarylandAnnualEmployerWithholdingReconciliationReport.ThecreditcannotbeclaimedifeithertheEmploymentOpportunityTaxCreditortheMarylandDisabilityEmploymentTaxCreditisclaimedforthesameemployee.Formoreinformation,contact:DavidGheeMarylandDepartmentofLabor,LicensingandRegulationDivisionofEmploymentandTraining1100N.EutawStreetBaltimore,MD21201Phone:410‐767‐2080E‐mail:[email protected]://business.marylandtaxes.com/taxinfo/taxcredit/lteoef/default.aspMarylandDisabilityEmploymentTaxCreditBusinessesthathirepeoplewithdisabilitiesmaybeentitledtoataxcreditforwagespaidtotheemployeesandforchildcareortransportationexpensespaidonbehalfoftheemployees.Apersonwithadisabilityincludesaveteranreleasedfromthearmedforcesforaservice‐relateddisability.ThecreditmaybeclaimedforindividualshiredbeforeJuly1,2011.Thecreditmaybetakenagainstcorporateincometax,personalincometax,stateandlocaltaxeswithheld(forcertaintax‐exemptorganizationsonly),insurancepremiumstaxorpublicservicecompanyfranchisetax.Thesamecreditmaynot,however,beappliedtomorethanonetaxtype.Soleproprietorships,corporations,tax‐exemptnonprofitorganizationsandpassthroughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Toqualifyforthecredit:ThecompanymusthireanindividualwithadisabilityandobtainadeterminationfromtheDivisionofRehabilitationServices(DORS)oftheMarylandStateDepartmentofEducation,ortheMarylandDepartmentofLabor,LicensingandRegulation(DLLR)foradisabledveteran,thattheindividualisaqualifiedemployeewithadisability.Howthecreditiscalculated:Thecreditisallowedforthefirsttwoyearsofemploymentofthedisabledindividualforboththewagespaidandthechildcareortransportationexpensespaidonbehalfoftheemployeeasfollows:FirstYearWages:30percentofthefirst$6,000paidinthefirstyearforamaximumallowablecreditof$1,800(20percentforemployeeshiredbeforeJuly1,2000).Childcareortransportationexpenses:Upto$600ofexpensespaidinthefirstyearSecondYearWages:20percentofthefirst$6,000ofwagespaidinthesecondyearforamaximumallowablecreditof$1,200.Childcareortransportationexpenses:Upto$500ofexpensespaidinthesecondyear.Ifthecreditismorethanthetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxyears.ThecreditmaynotbeclaimediftheEmploymentOpportunityTaxCreditwasclaimedforthesameemployee.Atax‐exemptorganizationmayestimatetheamountofthetaxcreditforqualifying

Page 74: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

74

TermsofUse/Disclaimeronpage77

employeesforthetaxableyear.Thetotalamountoftheestimatedcreditshouldbedividedevenlyoverthenumberofperiodsforfilingwithholdingreturns(FormMW506).Forexample,ifquarterlyreturnsarerequired,thenthetotalestimatedcreditshouldbedividedbyfour.EachpaymenttotheComptrollerwouldbereducedbytheprorataamountofthecredit.Alternatively,thetax‐exemptorganizationcouldapplythecreditagainstthetaxonunrelatedbusinesstaxableincome.Documentationrequired:Corporateincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form500).Personalincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form502or505).Ifthebusinessisapass‐throughentity,Form500CRmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytoitsmembersmustseparatelystatetheirsharesofthecredit.IndividualsorentitiesmustattachthisstatementtotheForm500CRsubmittedwiththeirpersonal(Form502or505),corporate(Form500)orpass‐throughentity(Form510)incometaxreturns.Stateandlocalincometaxeswithheld:Form500CRmustbesubmittedwithFormMW508,theMarylandAnnualEmployerWithholdingReconciliationReport.Insurancepremiumstax:DocumentationofthecreditshallbemaintainedbythetaxpayerintheirfilesandbemadeavailabletotheInsuranceCommissioner,onrequest,inaccordancewithCOMAR31.06.04.03.Thedocumentationshouldincludedocumentsfromtheagencygrantingthecreditandalistofthenamesandtelephonenumbersforthetaxpayer'sstaffwhoaredirectlyinvolvedingrantingthecredits.Allinformationshallberetainedforaminimumofthreeyearsfromthedateofthefilingofthefinaltaxreturnonwhichthecreditistaken.Publicservicecompanyfranchisetax:FormAT3‐74mustbesubmittedwiththefranchisetaxreturn(SDATforms11or11T).Formoreinformation,contact:DavidGheeMarylandDepartmentofLabor,LicensingandRegulationDivisionofEmploymentandTraining1100N.EutawStreetBaltimore,MD21201Phone:410‐767‐2080E‐mail:[email protected]:MarylandStateDepartmentofEducationDivisionofRehabilitationServices2301ArgonneDriveBaltimore,MD21218Phone:1‐888‐554‐0334E‐mail:[email protected]://business.marylandtaxes.com/taxinfo/taxcredit/disability/default.aspandhttp://www.dllr.state.md.us/employment/mdetc.shtmlMaryland‐MinedCoalTaxCredit

Page 75: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

75

TermsofUse/Disclaimeronpage77

Aco‐generator,apublicservicecompany,oranelectricitysupplierthatpurchasescoalminedinMarylandonorbeforeDecember31,2020maybeeligibleforataxcredit.Thecreditmaybetakenagainstcorporateincometax,personalincometaxorpublicservicecompanyfranchisetax.Thesamecreditmaynot,however,beappliedtomorethanonetaxtype.Soleproprietorships,corporationsandpass‐throughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Toqualifyforthecredit:ThebusinessmustpurchaseMaryland‐minedcoalduringthetaxyear.Totakethecreditagainsttheincometax,anapplicationmustbesubmittedtotheStateDepartmentofAssessmentsandTaxation(SDAT).AnelectricitysuppliermustnothavebeenanelectriccompanybeforeJuly1,1999,andbothco‐generatorsandelectricitysuppliersmustnotbesubjecttothepublicservicecompanyfranchisetax.ThetotalamountofcreditsapprovedbySDATforthetaxyears2007andlaterarelimited.Inaddition,$2,250,000ofthecreditsmustbereservedforMaryland‐minedcoalforuseinaMarylandfacility.Howthecreditiscalculated:Thecreditis$3pertonofMaryland‐minedcoalpurchasedduringthetaxyear,butcannotexceedthecreditamountapprovedbySDAT.Ifthecreditismorethanthetaxliability,theunusedcreditmaynotbecarriedforwardtofuturetaxableyears.Documentationrequired:Corporateincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form500).Personalincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form502or505).Ifthebusinessisapass‐throughentity,Form500CRmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytoitsmembersmustseparatelystatetheirsharesofthecredit.IndividualsandentitiesmustattachthisstatementtotheForm500CRsubmittedwiththeirpersonal(Form502or505),corporate(Form500)orpass‐throughentity(Form510)incometaxreturns.Publicservicecompanyfranchisetax:Computationandschedulemustbesubmittedwiththefranchisetaxreturn(SDATForm11).Formoreinformation,contact:RevenueAdministrationDivisionComptrollerofMarylandAnnapolis,MD21411‐0001Phone:410‐260‐7980fromCentralMaryland,1‐800‐MD‐TAXESfromelsewhereE‐mail:[email protected]:StateDepartmentofAssessmentsandTaxation301W.PrestonStreetBaltimore,MD21201‐2395Phone:410‐767‐1191E‐mail:[email protected]

Page 76: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

76

TermsofUse/Disclaimeronpage77

Pleaseseealso:http://business.marylandtaxes.com/taxinfo/taxcredit/coal/default.aspTelecommunicationsPropertyTaxCreditAtelecommunicationscompanythatisapublicutilityisallowedacreditforaportionofthetotalpropertytaxespaidbythecompanyonitsoperatingrealpropertyinMaryland,otherthanoperatingland,thatisusedinitstelecommunicationsbusiness.Thecreditmaybetakenonlyagainstcorporateincometax.Onlycorporationsmayclaimthetaxcredit.Toqualifyforthecredit:Thebusinessmustbeapublicutilitythatisatelecommunicationscompany.ThebusinessmustalsohavepaidpropertytaxesonitsoperatingrealpropertyinMaryland,otherthanoperatingland,thatisusedinitstelecommunicationsbusiness.Howthecreditiscalculated:Thecreditis60percentofthetotalstate,countyandmunicipalcorporationpropertytaxespaidbythepublicutilityduringthetaxableyearonitsoperatingrealpropertyusedinitstelecommunicationsbusiness,otherthanoperatingland.Thecreditcannotexceedthestateincometaxliabilityafterdeductingotherallowableincometaxcredits.Ifthecreditismorethanthetaxliability,theunusedcreditmaynotbecarriedforwardtoanyfuturetaxyears.Documentationrequired:Corporateincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form500).Formoreinformation,contact:RevenueAdministrationDivisionComptrollerofMarylandAnnapolis,MD21411‐0001Phone:410‐260‐7980fromCentralMaryland,1‐800‐MD‐TAXESfromelsewhereE‐mail:[email protected]:StateDepartmentofAssessmentsandTaxation301W.PrestonStreetBaltimore,MD21201‐2395Phone:410‐767‐1191E‐mail:taxcredits@datPleaseseealso:http://business.marylandtaxes.com/taxinfo/taxcredit/telecomm/default.asp.WaterQualityImprovementTaxCreditAcreditmaybeclaimedfortheadditionalcommercialfertilizercostsnecessarytoconvertagriculturalproductiontoacertifiednutrientmanagementplan.However,thiscreditcannotbeearnedforanytaxyearbeginningonorafterJanuary1,2009.ThecreditmaybetakenagainstcorporateincometaxorpersonalincometaxonlyforexpensesincurredbeforeJanuary1,2009.Soleproprietorships,corporationsandpass‐throughentities,suchaspartnerships,subchapterScorporations,limitedliabilitycompaniesandbusinesstrustsmayclaimthetaxcredit.Toqualifyforthecredit:Thebusinessmustsubmitanutrientmanagementplanandinformationrelatedto

Page 77: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

77

TermsofUse/Disclaimeronpage77

thepurchaseanduseofcommercialfertilizertotheMarylandDepartmentofAgriculture.ThebusinessmustreceivethefollowingcertificationsfromtheMarylandDepartmentofAgriculture:ThebusinesshassubmittedanutrientmanagementplanTheadditionalcommercialfertilizercostsarenecessarytocomplywithanutrientmanagementplan.Theamountofthetaxcreditthatthebusinessiseligibletoclaimforthetaxableyear.ThebusinessmustsubmitacopyofthecertificationfromtheMarylandDepartmentofAgriculturewithitsincometaxreturn.Howthecreditiscalculated:Thecreditallowed:Is50percentofthecertifiedadditionalcommercialfertilizercostsnecessarytoconvertagriculturalproductiontoanutrientmanagementplan.Maybeclaimedforuptothreeconsecutiveyears.Maynotexceed$4,500inanytaxyear.Ifthecreditismorethanthetaxliability,theunusedcreditmaybecarriedforwardforthenextfivetaxyears.Documentationrequired:Corporateincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form500).Personalincometax:Form500CRmustbecompletedandsubmittedwiththeincometaxreturn(Form502or505).Ifthebusinessisapass‐throughentity,Form500CRmustbepreparedforthepass‐throughentityandsubmittedwiththeentity'sincometaxreturn(Form510).AmodifiedfederalScheduleK‐1providedbythepass‐throughentitytoitsmembersmustseparatelystatetheirsharesofthecredit.IndividualsorentitiesmustattachthisstatementtotheForm500CRsubmittedwiththeirpersonal(Form502or505),corporate(Form500)orpass‐throughentity(Form510)incometaxreturns.Formoreinformation,contact:MarylandDepartmentofAgricultureOfficeofResourceConservationAnnapolis,MD21401Phone:410‐841‐5863E‐mail:[email protected]://business.marylandtaxes.com/taxinfo/taxcredit/waterquality/default.asp

TermsofUse/Disclaimer

GeneralUse–NoLegalAdviceTheMarylandEntrepreneur’sHandbook(hereafterthe“Handbook”)isforgeneralinformationalpurposesonlyandisnotintendedtobeandmaynotbeconsideredaslegaladviceonanyparticularmatter.Forspecificandcompletelegaladvice,pleaseconsultwithapracticing

attorneyknowledgeableaboutMarylandlawandfamiliarwiththerelevantdetailsofyoursituation.

Page 78: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

78

TermsofUse/Disclaimeronpage77

FirstContributions,AdministrationCertainmaterialsforthisHandbookwerefirstcontributedbyMarkASargent,formerdeanoftheUniversityofMarylandCareySchoolofLaw,andmembersofcommitteesof

theMarylandStateBarAssociationandtheBarAssociationofBaltimoreCityandthisHandbookisadministeredbymembersofthoseBarAssociationsandtheBusinessLawSocietyoftheUniversityofMarylandCareySchoolofLaw.ThisHandbookisadynamicresourcetowhichpersonneloffederal,state

andlocalagencies,aswellasothergovernmentalorprivateorganizationsandindividuals,contributefromtimetotime.Allinformation,opinions,andpositionsstatedinthisHandbookarethoseofvariouscontributorsanddonotnecessarilyreflectthoseoftheMarylandStateBarAssociation,theBar

AssociationofBaltimoreCity,theUniversityofMarylandCareySchoolofLaw,oritsBusinessLawSociety.

ExternalLinks‐NoEndorsementThroughouttheHandbookyoumaybeabletolinktootherwebsitesordocumentswhichmaynotbeunderthecontroloftheauthors,contributors,oradministratorsofthis

Handbook.Theinclusionofwebsiteordocumentlinksisforinformationalpurposesonlyanddoesnotimplyanyrecommendationorendorsementoftheviewsexpressedwithinthem.Itisthesoleresponsibilityofthereadertoinvestigateandevaluateanyandalloffers,services,products,statements,

information,andcontentofanylinkedpage.Neithertheauthors,contributors,oradministratorsofthisHandbook,northeMarylandStateBarAssociation,theBarAssociationofBaltimoreCity,theUniversityofMarylandCareySchoolofLaw,oritsBusinessLawSociety,shallhaveanyresponsibilityforanypop‐

upwindoworadvertisementthatmightbeproducedbyyourWebbrowserorforthecontentthereof.

AccuracyandUseofInformationDespiteeveryefforttoensuretheaccuracyofthisHandbook’scontents,errorsmayappear.Lawsaresubjecttochangeandcourtinterpretationsoflawsmayvary.

InformationprovidedinthisHandbookmaynotrepresentrecentdevelopmentsinthelaw,maynotbecomplete,andmaynotbeaccurateinorapplicabletoyourjurisdictionorcircumstancesrelevanttoyoursituation.Anyrelianceyouplaceonsuchinformationisthereforestrictlyatyourownrisk.Readers

shouldnotact,orrefrainfromacting,onthebasisofinformationfoundintheHandbookwithoutconsultingcompetentlegalcounsel.TheMarylandStateBarAssociation,theBarAssociationofBaltimoreCity,theUniversityofMarylandCareySchoolofLaw,anditsBusinessLawSociety,hereby

specificallydisclaimanyandallliabilityforlossincurredasaconsequenceofanymaterialpresentedinthisHandbook.

LicenseGrantThisworkislicensedundertheCreativeCommonsAttribution‐ShareAlikeLicenseandtheGNUFreeDocumentationLicense(unversioned,withnoinvariantsections,front‐covertexts,orback‐

covertexts).Youacceptthisandallotherlicensesifyoucopy,modifyordistributetheworkinawayrequiringpermissionundercopyrightlaw.Anysubmittedtextthatyouholdthecopyrightto,by

Page 79: A Maryland Entrepreneur's Guide Up 1.1 - Wikimedia...angel groups to want to invest locally as opposed to nationally. Some active angel groups are more likely to invest in firms that

79

TermsofUse/Disclaimeronpage77

submittingit,youagreetolicenseunderthisLicense.ThisLicensealsoprovidesthatderivativeworksofthedocumentmustthemselvesbefreeinthesamesense.

Theseworkisofferedas‐isandmakesnorepresentationsorwarrantiesofanykindconcerningthework,

express,implied,statutory,orotherwise,including,withoutlimitation,warrantiesoftitle,merchantability,fitnessforaparticularpurpose,non‐infringement,ortheabsenceoflatentorotherdefects,accuracy,orthepresenceorabsenceoferror,whetherornotdiscoverable.Innoeventwillthe

MarylandStateBarAssociation,theBarAssociationofBaltimoreCity,theUniversityofMarylandCareySchoolofLaw,oritsBusinessLawSocietybeliabletoyouonanylegaltheoryforanyspecial,incidental,consequential,punitive,orexemplarydamagesarisingoutofthisLicenseortheuseoftheWork,evenif

Licensorhasbeenadvisedofthepossibilityofsuchdamages.

Subjecttothetermsandconditionsofthiswork'slicense,youherebygranttheuseraworldwide,royalty‐free,non‐exclusive,perpetual(forthedurationoftheapplicablecopyright)licensetoexercisetherightsintheworkasstatedintheCreativeCommonsAttribution‐ShareAlikeLicenseandtheGNU

FreeDocumentationLicense(unversioned,withnoinvariantsections,front‐covertexts,orback‐covertexts),andtherightsgrantedhereunderwillterminateautomaticallyuponanybreachbyyouofthetermsoftheCreativeCommonsAttribution‐ShareAlikeLicense,ortheGNUFreeDocumentationLicense

(unversioned,withnoinvariantsections,front‐covertexts,orback‐covertexts).

IRSCIRCULAR230NOTICE:AnyfederaltaxadvicecontainedinthisHandbook,includingalllinksandattachments,isnotintendedorwrittentobeused,andcannotbeused,forthepurposeofavoidingany

penaltythatmaybeimposedbytheInternalRevenueServiceorpromoting,marketing,orrecommendingtoanotherpartyanytransactionormatteraddressedherein


1 Management Meeting – Focus Groups ‘Invest in Your Career’ Jeff Goldman and Harlan Cohen 2-04-02

Angel groups in South Africa - seminar at UCT

Venture capitalapp1.hkicpa.org.hk/APLUS/2012/05/pdf/22-25-angel.pdf · summon angel investment. The proportion of angel investors – who tend to invest smaller sums and use their

Invest in Innovation, Invest in People...medtech community that’s added investments and jobs across Ireland. The Irish Medtech Association, our board, and working groups, have provided

Startup Investors Monitor 2016scent.dii.unipd.it/src/Startup_Investors_Monitor_2016.pdf · incubators/accelerators, angel investors’ groups, ventures programs, government funding

Top 21 angel investor groups in the west

ANGEL INVESTMENT DECISION MAKING AS A · PDF filenature of learning from meagre ... case studies of how individual investors or specific angel groups make their investment decisions

InnoVen Capital India Angel Report 2015 - Amazon S3 the India Angel Report: ... InnoVen Capital: India Angel Report. 17 Angel groups contributing to the study . 18 About InnoVen Capital

ACA, Angel Groups, and Angel-Backed Companies · ACA, Angel Groups, and Angel-Backed Companies Angel Capital Association September, 2012

y Canadian Angel Groups eport...The impact, importance and growth of Angel investment is clearly demonstrated by the fact that in 2011 Angel groups invested $82.4 million in 134 investments,

Ecosystems and Food Chains Ms. Angel. Ecosystems Groups of living things and the environment they live in make up an ecosystem. Groups of living things

How to Pitch to Angels? - cmu.edu · Who are Angel Investors? • Oen successful entrepreneurs or rered professionals • Accredited investors – SEC definiEon • Invest their

Creating Your Own Angel Investor Group - World Bank...Most impressively, these angel groups enjoy successes in very challenging environments; many do so with little or no guidance

Angel Gate. Invest in Manchester UK Property

Angel groups in SA - randolf.jorberg.comrandolf.jorberg.com/files/2011/03/Angel-groups-in-SA-UCT-Seminar.pdf · Why this matters … 4 Rapid growth start-ups generate the most new

Corporate Innovation Marco (1) - BOOTUP · corporates and entrepreneurs. With our network of angel and corporate investors, we invest in most promising startups. Premier communities

U.S. Angel Investing · ‘Angel’ •Often specific benefit targeted – Locales, cultural groups, etc. Capital Formation Chain $0 $150 -300K $1.0 2.0M •Personal Savings •Friends

World Cup 2010 Alphabetic Angel Bell Brown Angel Bell Brown Angel Bell Brown Angel Bell Brown Angel Bell Brown Angel Bell Brown Angel Bell Brown Angel

The first in-depth report Files...Angel Investing is a “Team Sport”—Angels Invest with Others and are Beginning to Also Use Online Platforms 89% of angel investors in our sample

2019.10.21 | SFC Angel EIS Fund | IM angel fund eis-sfc-o2hsq.pdfHidden Gems • We invest in passionate entrepreneurs and support them through to a successful exit. • Investing

Natural Angel Falls - Maine Trail Finder · Angel Falls Trail - 0.7 miles each way, easy ... People began classifying plants and animals centuries ago, organizing them into groups

In this Issue PSEG Funds Institute for Sustainability …...man of Jumpstart New Jersey Angel Network from 2009 to 2013, one of the premier Angel groups in the Mid-Atlantic Region

THE GLOBALIZATION OF ANGEL INVESTMENTSaei.pitt.edu/67171/1/WP-2015-09.pdf · a growing role of angel groups and other more “individualistic” funding options for start-ups, such

THE PRIVATE EQUITY LANDSCAPE · and angel investors. There’s plenty of overlap between the two groups. Both angel investors and venture capitalists typically invest in startups

Angel Groups vs. 506 Platforms

ACA, Angel Groups, and Angel-Backed Companies

Creating Groups in Angel

THE TRANSFORMATION OF THE BUSINESS ANGEL MARKET: … · evolution of specific business angel groups (Gregson et al 2013), group investment decision-making (Carpentier and Suret, 2015:

Angel Group Update, 3Q 2015 - The Venture Alley · •TX, CA & NY boast multiple angel groups on the list of most active groups. ... angel investing for the general public. More information

Angel Groups - Invitation

Returns to Angel Investors in Groups

How to invest small chunks into syndicates by Gil Penchina (Super Angel) at Vator Splash Oakland

Important Things to Know About Angel Investors - 2014 · individuals active in in the early-stage landscape • World’s largest trade group for angel investors o 220+ angel groups

2015 Annual Report - Angel Resource Instituteangelresourceinstitute.org/reports/halo-report-full...Angel Group Update: Halo Report 2015 Most Active Angel Groups Total Deals 2015 (descending

Natural Angel Falls - Maine · Angel Falls Trail - 0.7 miles each way, easy ... People began classifying plants and animals centuries ago, organizing them into groups based on how