Columbia

New State Emergency Funding to be Administered by TEDCO

 

COLUMBIA, Md. (December 31, 2020)—TEDCO, Maryland’s economic engine for technology companies, is offering a new economic relief initiative to benefit socially and economically disadvantaged and rural early-stage technology-based businesses hit hardest by the COVID-19 pandemic. 

On December 17, Governor Larry Hogan announced a state emergency economic relief package that includes $5 million to help socially and economically disadvantaged companies or companies in rural areas negatively affected by COVID-19. The economic relief is available statewide to qualifying companies that demonstrate some adverse impact from the COVID crisis.  

The announcement from the governor was part of $180 million in additional economic relief contributing to a cumulative total of over $600 million provided by the State to date in emergency economic relief. 

“The COVID-19 crisis has significant and potentially long-lasting effects on Maryland’s entrepreneurial ecosystem,” said Troy LeMaile-Stovall, TEDCO’s CEO and executive director.  “Much of the current recovery efforts are focused on more established small and large businesses. This is rightfully so, as the impact is devasting to many of these entities.  However, this crisis is a ‘make-it-or-break-it’ time for many younger companies, like those in TEDCO’s portfolio.”  

The funds administered by TEDCO will be provided to early-stage companies that are impacted by the current crisis and are in need of bridge funding to survive and prosper as the downturn and COVID-19 crisis subsides. The funds will focus on companies that have the highest barriers to traditional financing but are still expected to scale to the next phase of fundraising.  

Startups employ Marylanders, contribute to critical supply chains, and provide valuable revenue to the State and local governments. TEDCO’s portfolio alone consists of over 250 companies that employ over 2,400 Marylanders. TEDCO also assists and guides scores of other entrepreneurs and startup companies and frequently becomes one of the only sources of financing as more traditional forms of capital become scarce.  

“There is significant evidence to conclude that the COVID-19 crisis is disproportionately affecting entrepreneurs who are socially and economically disadvantaged or those entrepreneurs in the rural regions of the State,” further stated LeMaile-Stovall. “This is attributable to two main reasons: these businesses tend to face underlying issues that make it harder to run and scale successfully, and they are more likely to be concentrated in the industries most immediately affected by the pandemic.”  

Recent reports from the Center for Responsible Lending have shown that over 90% of small minority owned firms did not receive funds through the federal Paycheck Protection Program. Existing banking relationships play a major role in how likely a business is to apply for, and have success in obtaining, a loan. Many of the smallest businesses have never sought a line of credit and have no relationship with a lender. According to a 2020 Federal Reserve report, 46% of white-owned businesses have obtained loans in the past, while just 23% of black-owned firms have done so.  For rural regions, broadband connectivity issues make working in an all-virtual environment particularly challenging.  

The funding should be available by early-February 2021. If you are a socially disadvantaged, economically disadvantaged, or a rural-based business in Maryland that has been negatively impacted by the pandemic, more info about the funding will be available soon at https://www.tedcomd.com/rural-and-underserved-business-recovery-impact-covid-19.

About TEDCO

TEDCO, the Maryland Technology Development Corporation, enhances economic empowerment growth through the fostering of an inclusive entrepreneurial innovation ecosystem. TEDCO identifies, invests in, and helps grow technology and life science-based companies in Maryland. Learn more at www.tedcomd.com.

Media Contact
Tammi Thomas, Chief Marketing & Communications Officer, TEDCO
tthomas@tedco.md