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Maryland Industrial Development Financing Authority

Maryland Department of Commerce MIDFA Resources – Friday, September 24, 2021

The Maryland Department of Commerce’s MIDFA promotes private sector investment in economic development projects through the insurance of financial obligations  and the issuance of taxable and tax-exempt bonds. The program promotes greater access to capital for small and medium sized businesses, and supports historically disadvantaged businesses in rural areas.

Eligible purposes include land acquisition, building acquisition, renovations, construction costs, machinery & equipment, furnishings & fixtures, leasehold improvements, eligible ‘soft costs’, and working capital. MIDFA facilitates capital access by issuing private activity revenue bonds and can provide credit insurance in the form of a loan guaranty to reduce lender’s risk. 

Private Activity Revenue Bonds

  • Taxable Bond: Provides access to long-term capital markets for primarily fixed asset
  • Tax-Exempt Bond: Provides access to long-term capital markets for fixed asset financing at tax-exempt rates. Eligibility is limited by Federal law to 50` (c) (3) non-profits organizations, manufacturing facilities and certain solid waste projects. Additional limitations apply to the specific transaction type.

Credit Insurance

  • Conventional Program: Insures up to 80% , not to exceed $2.5 million of a transaction made by a financial institution. Export transactions may be insured up to 90%
  • Bond Program: Insures bonds up to 100%, not to exceed $7.5 million of taxable or tax-exempt bonds.

Program Eligibility

Commercial and Industrial (with the exception of retail), manufacturers, and not-for-profit entities.