Maryland New Start Microloan Program
About this page. This page explains the Maryland New Start Microloan Program in plain language. The program’s qualifications and eligibility requirements were established by the Maryland General Assembly under Chapter 485, Acts of 2022 - PDF (HB 158). If anything on this page conflicts with the statute, the statute controls.
Program Status
The program is active.
You cannot apply directly. Loans are available only to applicants referred by a qualifying entrepreneurship development program — see “Qualifying Entrepreneurship Programs” below.
What This Program Does
The Maryland New Start Microloan Program provides $50,000 in no-interest loans to covered individuals for the purpose of starting a small business.
The program is operated by the Maryland Department of Commerce, with support from the Governor’s Office of Small, Minority, and Women Business Affairs and the Maryland Department of Labor.
Who This Is For
The program serves covered individuals — people who are justice-involved — who are referred to Commerce by an entrepreneurship development program that received a grant from the Maryland Department of Labor under the New Start Grant Program.
Who counts as a covered individual
Under Chapter 485, a covered individual is someone who:
- Has been convicted of a criminal offense; or
- Has completed a term of imprisonment in federal prison or a State or local correctional facility; or
- Is approved for release by a correctional facility for the purpose of participating in a training program
And who meets the offense eligibility requirements the U.S. Small Business Administration uses for its federal Microloan Program.
SBA offense eligibility requirements
Effective July 15, 2015, businesses with an associate on parole or probation are eligible to receive SBA microloans except where the offense:
- Involved fraud or dishonesty; or
- In the case of a childcare business, involved an offense against a child
Offenses involving fraud and dishonesty include larceny, theft, embezzlement, forgery, misappropriation, wrongful abstraction, conversion, counterfeiting, willful misapplication, and any other fraudulent or dishonest act resulting in financial loss.
Benefits
- No interest
- No application fees
- No prepayment penalty
- No collateral required
- Credit history will not disqualify an applicant
Loan Terms
- Loan amount: $50,000
- Interest: none
- Application fee: none
- Collateral: not required to qualify
- Use of proceeds: must be used to start a business in Maryland
Eligible Uses
Loans may be used for capital or operating expenses related to starting a new business, including but not limited to:
- Rent or purchase of a business location
- Machinery or equipment required to operate the business
- Business license fees or permitting costs
- Purchase of materials and supplies needed to open the business
Qualifying Entrepreneurship Programs
To be eligible for a loan, an applicant must be referred by one of the following programs. Contact the program serving your area for questions and program information.
| Area served | Program and contact | Phone |
|---|---|---|
St. Mary's County | Tri-County Council of Southern Maryland Belinda Denton, Business Engagement & Development Manager [email protected] | 443-624-2402 (mobile) |
| Prince George's County | Pathways to Excellence, Inc. Erica Roberts, Executive Director [email protected] | 301-232-6746 |
Prince George's County | X Is Possible, LLC Erica M. Roberts, President, CEO, and Principal Consultant [email protected] | 301-464-1494 |
| Montgomery County | Perspectives Partnership, Inc. Marcus Bullock, Executive Director [email protected] | 240-814-2147 |
| Baltimore City | Building Blocks Services, LLC Dr. Heather Lamb, CEO [email protected] | 1-800-493-0997 |
Programs can change. This list reflects the programs currently funded under the New Start Grant Program. Because the list is updated as grants are awarded, check the Commerce program page or contact Commerce if you do not see a program serving your area.
How to Apply
- Contact the qualifying entrepreneurship development program serving your area (see the table above).
- Complete that program’s entrepreneurship training.
- On completion, the program recommends qualifying individuals for a loan and provides an application.
- Submit the application to the Maryland Department of Commerce.
There is no direct application. Applications are available only through a qualifying entrepreneurship development program. Commerce cannot accept an application from an individual who has not been referred.
Legal Notices and Required Language
This program is authorized under Chapter 485, Acts of 2022 - PDF (House Bill 158), which established the program’s qualifications and eligibility requirements.
Related federal reference:
- U.S. Small Business Administration Microloan Program — source of the offense eligibility requirements
Applicants should consult the authorizing statute and applicable regulations for the complete legal requirements governing this program.
Contact
Celester A. Hall
Program Manager, Office of Finance Programs
Maryland Department of Commerce
Email: [email protected]
Phone: 410-767-6356
For questions about entrepreneurship training and referrals, contact the qualifying program serving your area.