Maryland small business grants and loans for 2025

What to consider before applying

If you’re beginning to explore business funding and support in Maryland, here’s what to consider before you apply.

How hard is it to get a business loan in Maryland?

The approval process is always easier with a solid business plan and strong financials. Keep in mind that federal SBA and Maryland SSBCI loan programs are competitive, so factors such as credit score, business age, and industry will condition the approval process. As for the application process, conventional loans are the most efficient, followed by traditional SBA loans and alternative state programs.

Are there free funding programs for Maryland small businesses?

In 2024, the Maryland Department of Commerce managed 20 business grant programs that can be categorized as "free funding" opportunities because they do not have repayment schedules.

Does Maryland have a debt relief program?

Whenever there is a disaster declaration, the Economic Injury Disaster Loan Program (EIDL) can provide working capital loans of up to $2 million to meet business financial obligations. This is a federal program that Maryland conforms to, and a recent example was the EIDL declaration for the Francis Scott Key Bridge collapse in Baltimore.

6 Maryland small business grants

Stimulating the state economy is at the heart of the business grant programs in Maryland. When you’re approved for a small business grant, you won’t have to worry about repayment, but some programs may direct you to use the funds for specific business purposes. Here are some state-sponsored grants to look into:

1. Project Restore 2.0

Project Restore 2.0, run by the Maryland Department of Housing and Community Development (DHCD), helps small businesses revitalize vacant properties. Eligible businesses can receive up to $300,000 in rental assistance and operating grants.

2. Maryland Manufacturing 4.0

Offered through the Department of Commerce, Maryland Manufacturing 4.0 is a grant program where small and midsize manufacturers can get matching grants from $25,000 to $500,000 to invest in new technologies and digital business practices. To qualify, your business must have three to 250 full-time employees and have been in operation for at least three years.

3. Partnership for Workforce Quality (PQW) grants

If you run a small or midsize manufacturing or technology company, this grant can help you train your employees. PWQ offers matching grants between $10,000 and $200,000, reimbursing up to 50% of training costs for new technologies and production processes.

4. Build Our Future Grant Pilot Program

The Build Our Future Grant Pilot Program provides funding for infrastructure projects that drive innovation in Maryland’s technology sectors. Businesses can apply for grants of up to $2 million per year, but they must provide matching funds—200% to 400% of the grant amount, depending on the award size.

5. Purple Line Small Business Grant Program

If your business is along the Purple Line corridor, you may qualify for a grant of up to $50,000. This grant is designed to support small businesses affected by the ongoing construction, helping them stay open and continue serving their communities. To be eligible, your business must have been operating at its current location since before January 1, 2022, be in good standing with state and federal authorities, and have 50 or fewer employees or meet certain sales criteria.

6. Business Telework Assistance Grant

The Business Telework Assistance Grant offers grants of up to $25,000 to help businesses set up or expand remote work options for their employees. Funding can be used to buy essential equipment like hardware, software, and technical services needed to create and implement a telework policy.

For more grant programs, search through the Maryland Financial Incentives for Businesses web app.

Eligibility requirements for grants in Maryland 

Eligibility requirements for small business grants in Maryland vary by program, but they generally consider the following factors.

• Business size: Many grants are designed for small businesses, often based on the number of employees (typically under 50) or annual revenue limits.
• Location: Some grants target businesses in specific Maryland regions, such as Priority Funding Areas or economically distressed communities. Programs like the Purple Line Small Business Grant specifically support businesses affected by construction in designated corridors.
• Financial need: Certain grants require businesses to show financial hardship or revenue losses, especially those tied to economic recovery efforts.
• Industry focus: Some grants cater to specific industries, like manufacturing, technology, agriculture, and sustainability. For example, the Maryland Manufacturing 4.0 Grant funds businesses investing in advanced technology.
• Operational history: Many grants require businesses to be operational for a specific period, such as at least one or three years, before applying.
• Commitment to initiatives: Maryland grant programs may prioritize businesses that contribute to job creation, workforce development, innovation, or environmental sustainability.
• Matching funds: Some grants require businesses to provide a percentage of the funding themselves.
• Ownership status: Maryland offers grant opportunities that give priority to minority-owned, women-owned, veteran-owned, and disadvantaged businesses.
• Required documentation: Most grant applications require a business plan, financial statements, proof of Maryland business registration, and compliance with state regulations.

4 Federal small business grants

Federal grants are also available and may be a potential funding source for your business.

1. Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) Programs

The SBIR and STTR programs support small businesses engaged in research and technological innovation. These grants provide funding to help businesses develop and commercialize new technologies in industries such as healthcare, defense, and energy. Eligible businesses must meet federal guidelines and work with government agencies like the National Science Foundation or the Department of Defense.

2. USDA Rural Business Development Grants

The U.S. Department of Agriculture (USDA) provides Rural Business Development Grants (RBDG) to help small businesses in rural communities grow and thrive. These funds support projects such as training, technical assistance, and infrastructure improvements. To qualify, businesses must operate in areas with a population of fewer than 50,000 people.

3. Minority Business Development Agency (MBDA) Grants

The MBDA, a division of the U.S. Department of Commerce, offers grants to support minority-owned businesses. These grants fund programs providing business training, access to capital, and expansion opportunities. MBDA grants are typically awarded to nonprofits and business development centers that assist minority entrepreneurs.

4. Economic Injury Disaster Loans and Grants

During economic downturns and natural disasters, federal grants and low-interest loans become available through agencies like the SBA and the Federal Emergency Management Agency (FEMA).

Additional grant resources for Maryland businesses

State programs aren’t the only way to get funding for your business. There are plenty of local government grants, private foundation grants, and corporate grant programs that can help you secure the money you need to grow. Here’s where to look:

• Local government grants: Many Maryland counties and cities offer grant programs to support small businesses, attract new companies, and boost local economies. Some examples include Baltimore Development Corporation grants, Montgomery County grants, and Rockville Economic Development, Inc. (REDI) grants.
• Private foundation grants: Nonprofit organizations and foundations in Maryland offer grants to businesses that align with their missions, such as community development, innovation, or job creation. Some options include the Abell Foundation and the Harry and Jeanette Weinberg Foundation.
• Corporate grants: Many large companies (e.g., Bank of America and Comcast) offer grants to help small businesses grow, especially those in tech, sustainability, and community-focused industries. Check company websites and business funding platforms regularly since corporate grant programs change frequently.

How to get a business grant in Maryland: Application process

Applying for a business grant in Maryland requires careful planning, organization, and attention to detail. Below is a step-by-step guide to help you successfully apply for grants—whether federal, state-sponsored, private foundation, corporate, or local.

Applying for Maryland-sponsored grants

Follow these steps when applying for state-funded business grants in Maryland.

1. Research available grant opportunities

Explore grant programs offered by the Maryland Department of Commerce, the Maryland Department of Housing and Community Development (DHCD), and local county and city websites for regional grant opportunities. Each program has specific eligibility requirements, funding limits, and application deadlines.

2. Confirm your business eligibility

Before applying, ensure your business meets the basic eligibility criteria for the grant. Refer to the “Eligibility requirements for grants in Maryland” section for common requirements. 

3. Gather required documents

Most Maryland grant applications require supporting documents, such as an active Maryland Certificate of Good Standing, profit and loss statements, a business plan, revenue projections, and W-9 forms.

4. Review the Notice of Funding Availability (NOFA)

A NOFA is the official announcement outlining the grant’s eligibility, funding details, and application process. Carefully read through it to understand the exact qualifications for receiving the grant, the required documents and submission format, and the application deadlines and review process.

5. Prepare and submit your application

Most state agencies require businesses to submit applications through an online portal or via email. Before submitting, double-check that you’ve followed the submission guidelines and provided the required documentation.

6. Monitor your application and respond to requests

After submission, keep track of your application status. Also, be prepared to respond to any follow-up questions from the grant review committee and provide additional documentation if requested.

Applying for federal grants

1. Identify federal funding opportunities

Search for available grants on Grants.gov and specific federal agency websites. Review eligibility criteria, funding priorities, and application deadlines.

2. Obtain a Unique Entity Identifier (UEI)

Register in the System for Award Management (SAM.gov) to obtain a UEI, which is required for federal grants. Maintain an active SAM.gov registration to stay eligible.

3. Review the Funding Opportunity Announcement (FOA)

Carefully read the FOA to understand grant objectives, requirements, and evaluation criteria. Note key deadlines and required documents.

4. Prepare the application package

Write a detailed project narrative explaining your goals, impact, and execution plan. Develop a comprehensive budget and justification for requested funding. Be sure to also gather supporting documents, such as letters of support, resumes, and compliance certifications.

5. Submit your application

Use the designated platform to submit your application. For federal grants, this is typically Grants.gov. Ensure all components are properly formatted and submitted before the deadline.

6. Follow up and await feedback

Monitor your application status through the submission portal. Respond promptly to any requests for additional information or clarifications.

Applying for local, private, or corporate grants

1. Find grant opportunities

Check local government websites, private foundations, and corporate grant programs for available funding. Review eligibility and application requirements.

2. Prepare required documents 

Gather business details, financial statements, and a strong proposal outlining your project, goals, and impact.

3. Submit your application 

Follow the specific submission process for each grant, ensuring all required documents are included.

4. Monitor and follow up 

Track your application status and respond to any follow-up requests for additional information.

Are there repayment requirements for small business grants in Maryland?

Grants don't need to be repaid because they are not a debt funding method. However, some may be subject to clawback provisions if the business closes prematurely or when terms are not met. In some cases, the entire grant amount could be subject to repayment for business violations of terms and conditions.

5 Maryland small business loans

Taking out loans to finance business formation or operations is the most traditional method of debt funding. You can go to a traditional bank or credit union for a commercial loan, but Maryland also offers several state-backed loan programs designed to help small businesses access affordable financing. Here’s a look at the top loan programs available in Maryland.

1. U.S. Small Business Administration (SBA) loans 

The SBA is a federal agency that guarantees loans made by banks and private lenders to small businesses. This means that the SBA reduces the risk for lenders, which enables them to provide loans that might otherwise be considered too risky.

The ultra-flexible SBA 7(a) loan is the most popular, and it can be used to purchase working capital, equipment, and real estate. The SBA 504 loan is for long-term fixed business assets such as real estate and equipment. There’s also the SBA microloan, which provides up to $50,000 for startups and small businesses.

2. Maryland Small Business Development Financing Authority (MSBDFA) loans

The MSBDFA is a state-run program that helps businesses that struggle to secure traditional financing, including minority- and women-owned businesses. It offers contract financing loans to help businesses fulfill government contracts, long-term loans for purchasing equipment or property, and surety bonding assistance for construction and service contracts.

3. Neighborhood BusinessWorks loan program

The Neighborhood BusinessWorks program provides loans for businesses in designated revitalization areas to help stimulate investment in those areas. Loans can be up to $5 million, and the funds can be used for real estate acquisition, renovation, and working capital.

4. Maryland Economic Adjustment Fund (MEAF)

The MEAF provides loans of up to $150,000 to support small and underserved businesses with fewer than 50 employees. This program helps businesses modernize operations, develop new commercial applications for technology, and expand into new markets.

5. Military Personnel and Veteran-owned Small Business Loan Program (MPVOLP)

The MPVOLP provides no-interest loans to support businesses owned by military reservists, veterans, and National Guard personnel, as well as small businesses that employ them. The loans range from $1,000 to $100,000, with repayment terms between one and eight years.

Maryland small business loan eligibility

Maryland small business loan programs will have different eligibility requirements, but generally, your business must meet the following criteria: 

• Size standard: Have fewer than 750 employees, though some programs set the limit at 500 or fewer.
• Location: Operate within the state of Maryland.
• Good standing: Be in compliance with state regulations and free of recent bankruptcies, judgments, or liens.

Your business must also meet any other requirements specified by the lender.

Do you have to pay back loans in Maryland as a small business?

Yes, if you take out a loan for your small business in Maryland, you’ll need to pay it back. Unlike grants, which don’t require repayment, loans are borrowed money that comes with a set repayment schedule. Some programs, like the MPVOLP, offer zero-interest loans that make repayment easier. Others, like SBA 7(a) loans, have longer terms and competitive interest rates. 

Before applying, make sure you understand the loan terms and feel confident your business can handle the payments. You should also consult a financial advisor or accountant who can help you choose the best loan for your business and manage repayment effectively.

How to get a business loan in Maryland: Application process

Small business loans in Maryland are available from both private lenders and government-backed programs. To improve your chances of approval, follow these key steps:

1. Assess your financing needs 

Determine how much funding you need, what it will be used for, and which loan type best suits your business.

2. Check your credit and financials

Review your business and personal credit scores, gather financial statements, and ensure your revenue supports loan repayment.

3. Prepare a business plan 

Most lenders require a detailed business plan outlining your operations, revenue projections, and repayment strategy.

4. Research lenders 

Compare options from banks, credit unions, online lenders, and state-backed programs to find the best terms and eligibility requirements.

5. Gather required documents

This typically includes tax returns, financial statements, legal business documents, and collateral details if needed.

6. Submit your application

Follow the lender’s specific process, whether online or in person, and ensure all required documents are included.

7. Await approval and funding

Lenders review your application, conduct underwriting, and may request additional details before issuing funds.

Maryland small business funding resources and support

Entering the world of small business formation and entrepreneurship is similar to getting into investing for the first time. To start with confidence, you’ll need more than just a good working knowledge. You’ll need access to funding resources, support programs, and expert guidance to handle challenges and seize opportunities. Check out these Maryland-based funding and support programs that can help you secure capital, refine your business strategy, and connect with experts.

Maryland Small Business Development Center (SBDC)

The Maryland SBDC provides free business consulting, training, and funding assistance for entrepreneurs at all stages. They also host workshops on financial planning, marketing, and government contracting to help small businesses succeed.

SCORE Maryland

SCORE is a nationwide nonprofit with local chapters that offer free business mentorship and educational resources. Their network of experienced business professionals and retired executives provides personalized guidance on everything from startup funding and financial management to marketing and growth strategies.

TEDCO

If you're in the technology or life sciences sector, TEDCO (Maryland Technology Development Corporation) supports early-stage tech companies and research-driven businesses with grants, investments, and advisory programs.

Other ways to fund your small business in Maryland

Grants and loans are common funding options for businesses, but they aren’t the only ways to secure financial support. Maryland small businesses can explore a variety of alternative funding methods to fuel growth and operations. Here’s a look at some of the most popular options:

Alternative loans

Non-traditional financing options such as online lenders, peer-to-peer lending, or merchant cash advances, often with more flexible requirements than bank loans.

Angel investors

Established entrepreneurs (angel investors) who invest their personal money into startups, often at an early stage, in exchange for equity.

Bootstrapping 

Using personal savings and revenues to fund business operations without external financing.

Contests

Competitions where businesses pitch ideas to win funding or resources.

Corporate programs

Initiatives by large companies offering funding, mentorship, or resources to small businesses.

Crowdfunding 

Raising small amounts of money from a large number of people, typically via online platforms.

Friends and family 

Obtaining funds from personal networks to support business ventures.

Incubators 

Organizations that support startups with resources, mentorship, and sometimes funding.

Microloans

Small, short-term loans from nonprofit lenders, government programs, or alternative lenders, often designed for startups and businesses that may not qualify for traditional bank loans.

Product presales

Selling products before they are produced to generate upfront capital.

Purchase order financing

Obtaining funding based on purchase orders to pay suppliers and fulfill customer orders.

Vendor financing

Suppliers provide goods or services with deferred payment terms to support business cash flow.

Venture capitalists 

Professional firms that invest in startups with high growth potential in exchange for equity.

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