Maryland Board of Public Works Approves Anne Arundel Economic Development Corporation's Designation as Video Lottery Terminal Loan Fund Manager
AAEDC one of three entities responsible for distributing funds to small, minority and women owned businesses.
Annapolis, MD - April 17, 2013 - Maryland's Board of Public Works has given the green light to Anne Arundel Economic Development Corporation's proposal to serve as a loan fund manager responsible for the investment of $3.36 million to small, minority and women owned businesses around the state. Today the board approved AAEDC and two other entities, Meridian Management Group Inc., of Baltimore and Salisbury-based Maryland Capital Enterprises Inc., to manage the lending and investment of $7.8 million of casino revenue to the state's small business community.
"Today's strict lending environment poses significant challenges to small businesses that are credit worthy but may not be deemed bankable," said Robert L. Hannon, Anne Arundel Economic Development Corporation President and CEO. "These funds will be a good complement to our existing portfolio of small business loans and will allow us to expand our assistance to these worthy ventures. With a robust marketing effort planned, we aim to fully obligate our allotment within the year."
Half of the fund's investment will be targeted to small, minority and women owned businesses located within a ten mile radius of Maryland's three existing casinos, Maryland Live in Anne Arundel County, Hollywood Park in Cecil County and Ocean Downs in Worcester County. The other half will be available to small businesses located outside those target areas.
AAEDC's proposal incorporates several important partnerships to ensure that an effective outreach effort is made to educate these key constituencies on the funds' availability. Partners include Worcester County Economic Development, Harford County Economic Development and Cecil County Economic Development. In addition, AAEDC will partner with bwtech@UMBC and Anne Arundel County's technology incubator, Chesapeake Innovation Center, for specific outreach to technology companies.
Loans to small businesses are expected to range from $25,000 to $500,000 for purposes such as business and commercial real estate acquisition and expansion, lease-hold improvements, equipment and vehicle purchase, and working capital.
Anne Arundel Economic Development Corporation will begin scheduling business outreach sessions with its partners on May 1.
The mission of the Anne Arundel Economic Development Corporation is to serve as a catalyst for business growth in Anne Arundel County thereby increasing job opportunities, expanding the tax base and improving quality of life.
By providing investment and technical assistance and fostering community revitalization initiatives, the AAEDC plays a vital role in enhancing commercial districts, improving county infrastructure, increasing agriculture-based business and promoting high-value business sectors such as technology and national defense.