md department of housing & community development - neighborhood businessworks program

Secretary Kenneth C. Holt

Maryland Department of Housing and Community Development

Neighborhood BusinessWorksFinancing to Make the Deal a

Reality


Maryland Department of Housing

and Community Development

May 3, 2016MEDA Annual Conference

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NEIGHBORHOOD BUSINESSWORKS

• The state’s premiere small business loan program est. 1995

• Revitalization through Support of Small Business• Broad Range of Financing Tools • Strengthens commercial districts and town

centers



NBW PURPOSECONTRIBUTE TO THE RECOVERY & HEALTH OF LOCAL ECONOMIES• Revitalization tool• Commercial/retail to generate street level activity• Improve vacant/underutilized buildings• Job creation• Leverage of private capital• Support business growth and retention in

Maryland

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NBW ELIGIBLE APPLICANTS

• Maryland-based small businesses as defined by U.S. Small Business Administration

• Nonprofit Organizations • Commercial Property Owners • Commercial Property Tenants• Developers • Retail, Manufacturers, Service, Mixed Use

Projects

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NBW ELIGIBLE USES OF FUNDS

• Real estate acquisition• New construction or renovation• Leasehold improvements• Purchase of equipment & machinery• Purchase of inventory• Costs associated with business opening or

expansion• Working capital



NBW FINANCING HISTORICALLY

Provides “gap” financing to businesses in Sustainable Communities throughout the State

•Loans up to $500,000 •50% of the total project costs•Requires a primary lender•Annual lending volume - $5 million



WHERE ARE WE HEADED?

Passage of HB326 in 2016 Legislation – Bravo!

•Sustainable Communities & Priority Funding Areas

•Lending volume $50 million annually by 2019



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Priority Funding Areas and Sustainable Communities in Maryland



HOW DO WE GET THERE?

• Issue bonds to raise capital

• Financial Partnerships – i.e. Banks and CDFI’s

• Loan guaranty programs

• Leveraging experience, expertise and reputation of CDA



NBW RESULTS SINCE 1996

• Funded more than $89 million

• Participated in 600+ projects

• Created/sustained 12,000+ jobs across Maryland

• Leveraged $399 million in private investment

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NEIGHBORHOOD BUSINESSWORKS PROJECTS

Arrow Bicycle, Hyattsville Joie De Vivre, Cambridge

Big Bad Woof, HyattsvilleRoscoe’s Neapolitan Pizzeria, Takoma Park

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2600 N. HOWARD STREET – BEFOREBALTIMORE CITY



2600 N. HOWARD STREET – AFTERBALTIMORE CITY



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FAT DADDY’S OCEAN CITY, MD – WORCESTER COUNTY

Demolition Construction in Progress



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HANDLEBAR CAFÉBALTIMORE CITY

Before After



MINIHANE’S (FORMER WASHINGTON HOTEL)ELKTON, MD – CECIL COUNTY

BEFORE



MINIHANE’S IRISH PUB & RESTAURANT ELKTON, MD – CECIL COUNTY

AFTER



BENEFITS TO YOU

• Business attraction/retention

• Access to capital

• Job creation

• Community pride

• Partnership with DHCD



THANK YOUTHANK YOUFor More Information Contact:

Michael Haloskey, Director Business LendingPhone: 301-429-7523Email: [email protected]

Cheivelle Hill, Senior Loan UnderwriterPhone: 301-429-7518Email: [email protected]

Colleen Cord-Malone, Program CoordinatorPhone: 301-429-7517Email: [email protected]

Aisha Taylor, Loan UnderwriterPhone: 301-429-7721Email: [email protected]

md department of housing & community development - neighborhood businessworks program

Economy & Finance