Maryland Department of Housing and Community Development Secretary Jake Day announced the establishment of the Small Business Lending Program – offering four loan products to provide small business and community real estate development projects with the financial tools needed to succeed.
Additionally, the Secretary announced that the first competitive application round for $14 million in Small Business Direct Loans will open on August 17, 2026.
“Small businesses are the backbone of Maryland’s economy and the heart of our communities,” said Secretary Day. “The reimagined Small Business Lending Program provides entrepreneurs with the capital they need to grow while navigating rising costs and continued economic uncertainty. By making financing more accessible, we’re helping create jobs, support strong economic outcomes and build a more resilient Maryland economy.”
The Small Business Lending Program is administered by the Department’s Division of Business Development, which was created in 2025 to expand and focus the Department’s financing of high-need small businesses across the state. The program is the latest reimagining of the Department’s direct business financial assistance programs, previously known as Neighborhood BusinessWorks, which has demonstrated 30 years of success in supporting small businesses that create thriving communities. Updates to the program reflect changing economic and market conditions and identified community needs such as housing, childcare and fresh food access across Maryland.
The Small Business Lending Program will offer four revamped loan products:
- Small Business Direct Loans: Competitive loans of up to $2 million with a fixed 4% interest rate.
- Small Business Companion Loans: First come, first serve loans of up to $5 million with a 4% interest. A minimum 1:1 match by a private lender is required.
- Own Your Future Loans: Owner-occupied real estate acquisition, construction, or renovation loans of up to $5 million with a 4% fixed interest rate. A minimum 1:1 match by a private lender is required.
- Loans-to-Lenders: Loans provided to Community Development Financial Institutions (CDFIs) at a 1% interest rate to stimulate investments to small businesses in Maryland.
Small Business Direct Loans are entirely state-funded and applicants must demonstrate that their business or project meets a community need and has a documented financial need to come to fruition. Loan applications will be scored and ranked by factoring in community impact, financial need, viability, and readiness. Additionally, applications that support the creation of new housing units, expand child care access, introduce healthy food options to a food insecure community, or rehabilitate vacant properties will be prioritized. This new competitive selection process will ensure that high-impact businesses and projects are selected. Interested parties that would like to be kept informed about the competitive rounds for these loans are invited to complete and submit this online form to be added to the Department’s distribution list.
“Maryland small businesses are economic engines that offer opportunity and essential services to the communities they serve,” said Assistant Secretary for Business Development Brad Fallon. “This reimagined program will make strategic investments to empower existing or aspiring small businesses that demonstrate both community value and financial need.”
The three additional loan programs will source their funding from the U.S. Treasury’s State Small Business Credit Initiative (SSBCI) and be available on a first come, first serve basis. The Department serves as the State lead for deploying nearly $200 million in funding to small businesses and nonprofits. The Maryland Department of Commerce and the Maryland Technology Development Corporation (TEDCO) are subgrantees.
Interested businesses, nonprofits, and aspiring entrepreneurs are encouraged to request an initial consultation with a DHCD Business Development Officer prior to applying. During these consultations, program staff will assess business needs and eligibility for financing through the Business Lending Program or another State financial assistance program.
To learn more about eligibility and to apply for the Department’s Small Business Lending Program, please visit the Department’s website.
