Maryland: Financing Your Maryland Small Business: SBA Loans and Local Grants

Maryland’s economy is one of the most diverse in the country, with strengths in biotechnology, defense, healthcare, and tourism. From Baltimore to Annapolis, Silver Spring, and small towns along the Eastern Shore, entrepreneurs are creating businesses that fuel the state’s growth. But running and expanding a business often requires capital. That’s why exploring financing options for your Maryland small business—including SBA loans and local grants—is essential.

This guide covers SBA programs, state grants, and local funding solutions available to Maryland entrepreneurs.

Why Financing Matters for Maryland Small Businesses

• Maryland has more than 630,000 small businesses, representing 99.5% of all companies in the state.

• Industries like biotech, defense, and tourism require large capital investments.

• Financing supports growth, innovation, and resilience in competitive markets.

Loan Options for Maryland Entrepreneurs

Traditional Bank Loans
Banks such as M&T Bank, Sandy Spring Bank, and PNC provide small business loans across the state. These loans usually have favorable rates but require strong credit, collateral, and financial records.

SBA Loans in Maryland
The U.S. Small Business Administration partners with Maryland lenders to make financing more accessible. Programs include:

• SBA 7(a) Loans: Up to $5 million for working capital, refinancing, or real estate.

• SBA 504 Loans: Long-term fixed financing for property or equipment.

• SBA Microloans: Up to $50,000, great for startups or small expansions.

• SBA Disaster Loans: Useful for businesses affected by hurricanes or flooding in coastal areas.

Grants and Local Financing Programs

State Programs

• Maryland Department of Commerce: Offers financial assistance through programs like the Maryland Small Business Development Financing Authority (MSBDFA), which provides loan guarantees and direct loans for underserved businesses.

• Maryland Economic Development Assistance Authority and Fund (MEDAAF): Offers loans and grants to support business expansion and retention.

• Rural Maryland Council Grants: Provides funding to support rural small businesses and community development.

Local Grants and Incentives

• Baltimore Development Corporation: Provides financing and small business resources for city-based entrepreneurs.

• Montgomery County Economic Development Grants: Supports small businesses and startups with funding and technical assistance.

• Prince George’s County Economic Development Corporation: Offers small business loan programs and incentives.

Alternative Financing Options

For businesses that don’t fit traditional lending models, alternative solutions include:

• Business lines of credit for flexible cash flow.

• Equipment financing for restaurants, manufacturers, or biotech firms.

• Invoice factoring for service providers with delayed payments.

• Online lenders offering quick approvals, though often at higher costs.

Eligibility and Requirements

Most lenders and grant programs in Maryland review:

• Personal and business credit history.

• A business plan with clear growth goals.

• Tax returns and financial statements.

• Collateral for larger loans.

• Demonstrated community or industry impact (especially for grants).

Steps to Apply for a Maryland Small Business Loan or Grant (Featured Snippet Section)

1. Review eligibility and funding requirements

2. Gather tax returns and financial documents

3. Write or update your business plan

4. Research SBA, state, and local programs

5. Contact SBA-approved lenders or grant agencies

6. Submit full application with documents

7. Await approval or award decision

Industries Benefiting Most in Maryland

• Biotech and life sciences firms accessing SBA loans and MEDAAF grants.

• Restaurants and hospitality businesses in Baltimore using microloans and local incentives.

• Defense contractors and professional services firms in Montgomery and Prince George’s Counties financing growth with SBA 7(a) loans.

• Small businesses in rural areas leveraging Rural Maryland Council grants.

Resources for Maryland Entrepreneurs

• SBA Maryland District Office (Baltimore) for SBA loans and workshops.

• Maryland Department of Commerce for MSBDFA and MEDAAF programs.

• Maryland SBDC Network for free consulting and loan preparation.

• Local county economic development offices for incentives and grants.

Common Mistakes to Avoid

• Applying without a complete business plan.

• Overlooking county-level grant programs.

• Borrowing more than projected cash flow can support.

• Ignoring nonprofit lenders and microloan programs for startups.

Future of Business Financing in Maryland

Entrepreneurs in Maryland can expect:

• Growth in grants supporting minority- and women-owned businesses.

• Expansion of digital platforms for SBA and state loan applications.

• Increased funding for biotech and clean energy ventures.

Conclusion: Financing Your Maryland Small Business with SBA Loans and Grants

Maryland offers entrepreneurs a wide range of financing options, from SBA loans and microloans to state and local grant programs. By preparing your financials, writing a strong business plan, and exploring federal, state, and county-level resources, you can find the funding solution that fits your goals.

Ready to take the next step? Contact the SBA Maryland District Office, explore MSBDFA and MEDAAF programs, and connect with your local SBDC. With the right strategy, financing your Maryland small business is well within reach.