Van Hollen, U.S. Department of Commerce Announce $1.6 Million in American Rescue Plan Funds to Capitalize Revolving Loan Fund to Serve Small Businesses in Maryland
Today, U.S. Senator Chris Van Hollen (D-Md.) and Secretary of Commerce Gina M. Raimondo announced that the Department’s Economic Development Administration (EDA) is awarding a $1.6 million grant to the Maryland Department of Commerce, Baltimore, Maryland, to capitalize and administer a revolving loan fund that will serve small businesses throughout Maryland. This grant is funded by the American Rescue Plan.
This project will provide gap financing to help small, local businesses recover, grow and create new employment opportunities. The eligible lending area includes all counties in Maryland with priority consideration given to businesses located in rural regions and the city of Baltimore. This EDA grant will be matched with $396,000 in state funds and is expected to create 250 jobs, retain 110 jobs, and generate $210,000 in private investment, according to grantee estimates.
“When we invest in Maryland’s small businesses, our local economies thrive,” said Senator Chris Van Hollen. “This American Rescue Plan initiative will provide resources for entrepreneurs who have been hardest hit by the pandemic – from those in Baltimore to rural Maryland, and all parts in between – creating hundreds of good-paying jobs, creating new opportunities, and generating economic growth across the state. I will continue to support initiatives like this that help expand prosperity for Marylanders.”
“President Biden is committed to providing businesses with the resources they need to recover from the economic impact of the coronavirus pandemic,” said Secretary of Commerce Gina M. Raimondo. “This EDA investment will provide needed capital to small businesses and entrepreneurs in Maryland, creating a stronger, more robust regional economy.”
“The Economic Development Administration plays an important role in supporting locally-driven strategies designed to stimulate entrepreneurial activity,” said Assistant Secretary of Commerce for Economic Development Alejandra Y. Castillo. “This Revolving Loan Fund will provide the capital that small businesses and entrepreneurs in Maryland need to grow and thrive.”
“By focusing on both Maryland’s rural areas and the City of Baltimore, this new grant delivers a timely federal investment that will provide businesses and entrepreneurs new opportunities to expand, launch new initiatives, create new jobs, and help their communities recover from the pandemic,” said Senator Ben Cardin. “These EDA grants for capitalizing revolving loan funds have been instrumental in supporting small businesses in Maryland and throughout the country, by providing them access to capital when they need it most. I am proud to have worked on a bipartisan basis to strengthen the agency’s RLF program and make it more flexible and user-friendly for the state and regional organizations that administer them.”
“Small businesses are the engine that drives Maryland’s economy, innovation and communities,” said Congressman John Sarbanes (MD-03). “This funding will encourage small businesses to grow, create good paying jobs and expand opportunities across our state. It is clear that the American Rescue Plan has targeted the needs of Maryland’s small businesses effectively and supported a robust recovery. Now, as our small businesses face rising costs, this funding will allow them to overcome new challenges and thrive.”
This project is funded under EDA’s American Rescue Plan Economic Adjustment Assistance Program, which makes $500 million in Economic Adjustment Assistance grants available to American communities. The Economic Adjustment Assistance program is EDA’s most flexible program, and grants made under this program will help hundreds of communities across the nation plan, build, innovate, and put people back to work through construction or non-construction projects designed to meet local needs. Effective May 26, 2022, EDA has officially closed all of its American Rescue Plan programs for applications. The $3 billion program funding will be awarded on a rolling basis through September 30, 2022.