Maryland Economic Adjustment Fund (MEAF)
About this page. This page explains MEAF in plain language. The Fund is established under Economic Development Article, Title 5, Subtitle 2 (§§5-201 through 5-209). If anything on this page conflicts with the statute, the statute controls.
Program Status
The program is active. Commerce is currently accepting new applications.
Please note. Submitting an application is not an assurance of approval. Commerce reviews each application using standard commercial credit criteria and recommends approval for the projects it determines present the best chance of succeeding.
What This Program Does
The Maryland Economic Adjustment Fund provides loans of up to $150,000 to small and underserved businesses with fewer than 50 employees.
MEAF helps these businesses upgrade or modernize operations, develop or expand commercial applications for technology, and enter and compete in new or different markets. Funding is available to small businesses in all regions of the state.
MEAF was created in 1994 as a special, nonlapsing revolving fund. It is capitalized with a combination of federal money from the U.S. Economic Development Administration and State funds, along with repayments on prior loans.
Who This Is For
Small and underserved Maryland businesses with fewer than 50 employees that cannot qualify for loans from traditional lending sources.
Eligible business types include:
- Manufacturers
- Wholesalers
- Retail businesses
- Technology firms
- Service companies
- Skilled trades
Benefits
A MEAF loan can help your business:
- Upgrade or modernize operations
- Develop or expand commercial applications for technology
- Enter and compete in new or different markets
Loan Terms
- Maximum loan amount: $150,000
- Collateral: required — applicants must describe the collateral offered to secure the loan
- Interest rate and repayment term: determined during Commerce’s review, based on the project and the applicant’s circumstances
Terms are set case by case. Commerce reviews each application using standard commercial credit criteria. The interest rate, repayment term, and specific collateral requirements are determined during that review rather than being fixed in advance. Contact Commerce to discuss what terms your project is likely to receive.
Eligible Uses
Loan funds can be used for:
- Working capital
- Equipment
- Building renovation
- Real estate acquisition
- Site improvements
Key Eligibility Requirements
To be considered, an applicant must:
- Have fewer than 50 employees
- Demonstrate creditworthiness
- Demonstrate the ability to repay the obligation
- Be unable to qualify for loans from traditional lending sources
Documents You Will Need to Apply
Commerce requires the following to evaluate an application:
- A business plan with three-year projections, a cost budget, and sources and uses of funds
- A current personal financial statement (request the form from Commerce)
- A listing of all owners and their percentages of ownership
- A resume for the principal owner(s)
- Personal federal tax returns with all schedules (most recent two years)
- Business federal tax returns with all schedules (most recent two years)
- An explanation of the personal or business funds you will contribute to the project
- An explanation of the collateral you will provide to secure the loan
The personal financial statement form is not published online. Request it by email when you inquire about the program.
How to Apply
- Email [email protected] to learn about the current availability of funds and to obtain an application. A member of the Commerce team will respond.
- Request the personal financial statement form at the same time.
- Assemble the documents listed above.
- Submit the completed application to the Maryland Department of Commerce.
What to Expect
Commerce reviews and processes each application using standard commercial credit criteria to determine whether it meets the program’s financial and other requirements for loan approval.
Commerce recommends approval of financing for the projects deemed to present the best chance of succeeding. Submitting an application is not an assurance of approval.
Legal Notices and Required Language
The Maryland Economic Adjustment Fund is established under Economic Development Article, Title 5, Subtitle 2 — §§5-201 through 5-209.
Key provisions:
- §5-203 — Maryland Economic Adjustment Fund — establishes the Fund as a special, nonlapsing revolving fund and sets out its sources and permitted uses
Applicants should consult the authorizing statute and applicable regulations for the complete legal requirements governing this program.
Contact
For program information, eligibility details, and how to obtain an application:
Email: [email protected]
Celester A. Hall
Program Manager, Office of Finance Programs
Maryland Department of Commerce
Email: [email protected]
Phone: 410-767-6356