Maryland Small Business Development Financing Authority (MSBDFA)
About this page. This page explains MSBDFA in plain language. The Authority is established under Economic Development Article, Title 5, Subtitle 5, with program regulations at COMAR 24.05.07 through 24.05.10. The subtitle was amended by the DECADE Act of 2026 (HB 898 / SB 388), effective July 1, 2026. If anything on this page conflicts with the statute or regulations, the statute and regulations control.
Program Status
MSBDFA is currently active. Federal State Small Business Credit Initiative (SSBCI) funding is available through the program.
Before you apply. SSBCI funds are limited and may be awarded until exhausted. The program's structure and financing limits were amended by the DECADE Act effective July 1, 2026. Confirm current availability and terms with Meridian Management Group before applying.
What This Program Does
MSBDFA helps Maryland small businesses grow when they cannot get the financing they need on reasonable terms through banks or other normal lending channels. The program gives particular attention to businesses owned by economically and socially disadvantaged entrepreneurs.
Rather than a single loan product, MSBDFA offers several financing and bonding tools. The Maryland Department of Commerce provides the financing, and a private contractor, Meridian Management Group, manages the program day to day.
Who This Is For
Maryland small businesses that cannot obtain adequate business financing on reasonable terms through normal financing channels.
The program focuses on businesses owned by economically and socially disadvantaged entrepreneurs.
What's Offered
MSBDFA provides financing and bonding through five components:
| Component | What it provides | Regulations |
|---|---|---|
| Contract Financing Program | Financing for businesses performing contracts, historically those funded mainly by federal, state, or local government or regulated utilities | COMAR 24.05.07 |
| Long Term Guaranty Program | Loan guaranties, and in some cases an interest subsidy, to help a business obtain financing from a bank | COMAR 24.05.08 |
| Surety Bonding Program | Bid, payment, performance, and surety bond guaranties, and surety bonding lines | COMAR 24.05.09 |
| Equity Participation Program | Equity investment, including for the purchase of an existing business or a franchise | COMAR 24.05.10 |
| State Small Business Credit Initiative (SSBCI) | Federal funding administered through MSBDFA — $45 million of Maryland's allocation | Federal program |
How funds can be used
MSBDFA financing may be used for:
- Working capital
- Supplies and materials
- Machinery and equipment acquisition
- Acquiring real estate
- Leasehold improvements
- Purchasing an existing business
- Financing contracts
MSBDFA can also provide bid, payment, performance, and surety bonds
Contract financing. Contract financing has historically been limited to contracts receiving the majority of their funding from federal, state, or local government or from regulated utilities. The DECADE Act of 2026 amended the subtitle effective July 1, 2026. Confirm current contract eligibility with Meridian Management Group.
SSBCI funding
Maryland was approved by the U.S. Treasury to administer up to $198 million in federal assistance, including later performance-based funds, through the State Small Business Credit Initiative (SSBCI).
That funding is distributed through several existing lending programs, including MSBDFA, which received $45 million. See all Maryland SSBCI programs.
Free SSBCI technical assistance is available through the University of Maryland Small Business Development Center. Learn about SSBCI Technical Assistance, or contact Eric Marshall at [email protected].
Key Eligibility Requirements
MSBDFA serves small businesses that are unable to obtain adequate business financing on reasonable terms through normal financing channels.
Each component has its own eligibility criteria, terms, and application requirements, set out in the regulations listed in the table above and detailed on the Meridian Management Group website.
How to Get Started
- Review the full MSBDFA guidelines, qualifications, and frequently asked questions on the Meridian Management Group website. This is strongly recommended before applying.
- Create an account in the Commerce application portal. Choose Register on the online application page and you will receive an email with instructions. Online applications are not available at this time. Please reach out directly to the contact listed below.
- If you already have an account in the Maryland Commerce Financial Incentive Program Application Portal, choose Log In — or Forgot Password if you do not remember your credentials.
- Complete and submit the application.
For help with the application form, contact Robin Harris at Meridian Management Group: [email protected], 410-333-4270, ext. 329.
Electronic funds transfer
The State requires all contractors to be registered to receive state payments by electronic funds transfer (EFT) before any contract exceeding $200,000 is approved by the Maryland Board of Public Works. All vendors are encouraged to register to be paid electronically.
To register, complete and submit Form GADX-10 to the General Accounting Division:
- Fax: 410-974-2309
- Mail: EFT Registration, General Accounting Division, P.O. Box 746, Annapolis, MD 21404-0746
Payments use the CCD, CCD+, or CTX format. The CCD+ format contains summarized information; detailed payment information is available through the One Stop Vendor Payment Inquiry System. The CTX format includes details for each invoice, but vendors must contact their bank to receive it and the bank may charge a fee.
Governance and Meetings
MSBDFA is overseen by the Maryland Small Business Development Financing Authority. For board members and meeting information, visit the Small Business Development Financing Authority page.
Legal Notices and Required Language
The Authority is established under Economic Development Article, Title 5, Subtitle 5.
Program regulations:
- COMAR 24.05.07 — Small Business Development Contract Financing
- COMAR 24.05.08 — Small Business Development Guaranty Fund
- COMAR 24.05.09 — Small Business Surety Bond Guaranty Program
- COMAR 24.05.10 — Equity Participation Investment Program
Amending legislation:
- DECADE Act of 2026 (HB 898 / SB 388) — amended Title 5, Subtitle 5 effective July 1, 2026, including the creation of a consolidated Maryland Small Business Development Financing Fund
Program resources:
- Meridian Management Group — guidelines, qualifications, and FAQs
- Commerce online application portal
- All Maryland SSBCI programs
- SSBCI Technical Assistance
- Small Business Development Financing Authority — board and meetings
Applicants should consult the statute and applicable regulations for the complete legal requirements governing this program.
Contact
For general information about MSBDFA:
Randy Croxton
Chief Investment Officer
Meridian Management Group, Inc.
Email: [email protected]
Phone: 410-333-4270