Other Funding Sources
In addition to our unique Next Stage Tech Fund, Anne Arundel County’s innovative companies may access the following investment, financing, and tax credit programs
Loan Programs
VOLT Growth Fund
Any innovative product business based in Maryland may apply for a loan from the VOLT Growth Fund, a program funded by the Maryland Department of Commerce and managed by the Anne Arundel Economic Development Corporation. The program offers loans of up to $100,000 with flexible terms and recapture when the company raises 5x the amount of the original loan in equity investment or within 5 years, whichever scenario is sooner.
VOLT Fund
Businesses in Maryland may qualify for a loan of between $25,000 to $500,000 for expenses such as business and commercial real estate acquisition and expansion, lease-hold improvements, equipment and vehicle purchase, and working capital. For companies developing a new innovation, the VOLT Fund has set aside for tech loans. The VOLT Tech loan application process differs from the process for conventional businesses and is only available through limited application rounds. VOLT Tech loans are most suited for high potential early stage technology companies that can anticipate reaching a cash flow break-even point within 18 months.
Technology Investment Programs
The Maryland Technology Development Corporation’s (TEDCO) Seed Funds are invested in companies that show promise of becoming venture fundable companies or are companies that, through a seed investment, will be sustainable through customer revenue, follow-on funding, or other forms of corporate venture.
Early-stage technology start-ups from all industries may apply, however to be applicable, a company must have a principal place of business in Maryland and have at least one full-time employee. Investments are made through convertible debt and equity instruments, ranging from $100,000 to $500,000. Four fund types are available: Cybersecurity Investment Fund, Life Sciences Investment Fund, Technology Commercialization Fund and Gap Investment Fund.
Grant Programs
Grants up to $1 million are available for American and Israeli companies to collaborate on new product research and development from the US-Israel Binational Industrial Research and Development (BIRD) Foundation. The foundation is a joint program of the U.S. Department of Commerce and Israel’s Ministry of Economy and Trade, which the Maryland/Israel Development Center (MIDC) represents in the State of Maryland. BIRD supports industrial R&D in all high tech and life science sectors including information technology, biotech, medical devices, agriculture, communications, electronics, software, homeland and cyber security, renewable and alternative energy, and environment and water.
Maryland Industrial Partnerships (MIPS)
Maryland Industrial Partnerships (MIPS) promotes the development and commercialization of products and processes through industry/university research partnerships. MIPS provides matching funds to help Maryland companies pay for the university research. Projects are initiated by the companies to meet their own research and development goals. Through MIPS, Maryland firms have the opportunity to leverage their research and development funds and gain access to the creative talents and extensive research base of the University System of Maryland. MIPS matching funds are awarded on a competitive basis for projects based on proposals submitted jointly by Maryland companies and researchers from any of the 13 University System institutions.
Build Our Future Grant Pilot Program
Maryland Department of Commerce grants for innovation infrastructure projects in an eligible technology sector (Advanced manufacturing, Aerospace, Agriculture, AI, Biotechnology, Blue Technology, Cybersecurity, Defense, Energy and Sustainability, Life Sciences, Quantum, Sensors and Robotics). Grant awards may be used to defray the cost to acquire, construct, rehabilitate, install, improve, or equip an eligible innovation infrastructure project.
BGE Energizing Small Business Grants
Project Restore
Provides financial support to Maryland’s existing or new businesses to help incentivize commercial investment in vacant retail and commercial properties.
Maryland Makerspace Initiative Program
Supporting the growth and development of Markerspaces throughout Maryland.
ExportMD Program
Helps to offset some of the costs of marketing internationally for Maryland’s small and mid-sized companies, providing up to $5,000 in reimbursement for expenses associated with an international marketing project.
Maryland Manufacturing 4.0
Provides grants to small and mid-sized Maryland manufacturers to invest in Industry 4.0-related technologies, machinery and robotics, and digital business practices to remain competitive and drive growth.
Business Tax Credits
Buy Maryland Cybersecurity (BMC) Tax Credit
Provides an incentive for Qualified Maryland Companies to purchase cybersecurity technologies and services from a Qualified Maryland Cybersecurity Seller. Qualified Maryland companies can claim a tax credit for 50% of the net purchase price of cybersecurity technologies and services purchased from a Qualified Maryland Cybersecurity Seller. The tax credit must be claimed for the tax year in which a purchase is made.
Employer Security Clearance Costs (ESCC) Tax Credit
Under the Employer Security Clearance Costs (ESCC) Tax Credit, technology businesses can earn income tax credits for the following:
- Processing application requests for federal security clearance.
- Maintaining, upgrading or installing computer systems in MD that are required to obtain federal security clearance.
- Training employees in the State to administer the clearance application process.
Research and Development Tax Credit (R&D)
Businesses that have qualified R&D expenditures in Maryland may qualify for the R&D Tax Credit equal to ten percent (10%) of eligible R&D expenses incurred during the taxable year in excess of the Maryland Base Amount.