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Maryland Department of Commerce

Maryland Industrial Development Financing Authority (MIDFA)

About this page: Credit insurance and bond financing that help lenders extend capital to businesses in Priority Funding Areas.

Program Status

MIDFA is currently active.

Confirm current availability:  Coverage limits and capacity can change. Confirm current terms with the program contact before pursuing a transaction.

What This Program Does

MIDFA promotes private-sector investment in economic development projects by insuring financial obligations and issuing taxable and tax-exempt bonds. It is designed to expand access to capital for small and medium-sized businesses and to support historically disadvantaged businesses and businesses in rural areas.

MIDFA support can be applied to land acquisition, building acquisition, construction costs, machinery and equipment, furniture and fixtures, leasehold improvements, certain eligible “soft costs,” energy-related projects and working capital.

Who This Is For

Commercial and industrial businesses located in a Priority Funding Area (with the exception of retail), manufacturers, not-for-profit entities and day care providers. Lenders work with MIDFA to reduce their risk on these transactions.

What's Offered

Private activity revenue bonds

  • Taxable Bond. Access to long-term capital markets, primarily for fixed-asset financing.
  • Tax-Exempt Bond. Access to long-term capital markets for fixed-asset financing at tax-exempt rates. Federal tax law limits eligibility to 501(c)(3) nonprofit organizations, manufacturing facilities and certain solid waste projects, and additional limits may apply to a specific transaction.

Credit insurance

  • Conventional Program. Insures up to 80% of a transaction made by a financial institution, not to exceed $2.5 million. Export transactions may be insured up to 90%.
  • Bond Program. Insures bonds up to 100%, not to exceed $7.5 million of taxable or tax-exempt bonds.

Key Eligibility Requirements

Eligible participants are commercial and industrial businesses in a Priority Funding Area (except retail), manufacturers, not-for-profit entities and day care providers.

The project must be located in a Priority Funding Area. While the size of the underlying transaction is generally not limited, the credit enhancement is subject to the program limits above.

How to Get Started

MIDFA works through financial institutions and through bond issuance, so a business does not apply directly the way it would for a grant. The path depends on what you need.

If you are a business, start with your lender. Credit insurance is applied to a loan made by a financial institution, so your bank or lender is the party that seeks the coverage. Tell your lender you would like them to look at MIDFA credit insurance.

If you are pursuing bond financing, involve your bond counsel early. Tax-exempt bonds carry federal eligibility limits that need to be confirmed before a transaction is structured.

Confirm your project location. The project must be in a Priority Funding Area.

Contact the Office of Finance Programs. Reach out to the program contact below to discuss the transaction and the current terms.

Plan for Authority review. The MIDFA/MEDAAF Authority reviews and approves MIDFA financing transactions, including private activity bonds and loan guarantees.

Related Programs

Advantage Maryland, formally the Maryland Economic Development Assistance Authority and Fund (MEDAAF), is a separate program that provides grants, loans and investments for economic development projects. MIDFA and Advantage Maryland are served by the same Authority. See the MIDFA/MEDAAF Authority page for more.

Governance and Meetings

MIDFA is overseen by the MIDFA/MEDAAF Authority. For board members, meetings and minutes, visit the MIDFA/MEDAAF Authority page.

Legal Notices and Required Language

Authorizing statute: MIDFA is established under the Economic Development Article, Title 5, Subtitle 4 of the Annotated Code of Maryland. The Authority itself is established under Section 5-407.

Applicants should consult the authorizing statute and applicable regulations for the complete legal requirements governing this program.

Contact

Bruce Alderman
Finance Specialist
Maryland Department of Commerce, Office of Finance Programs
Email: [email protected]
Phone: 410-375-0204