SB 609
Department of Legislative Services
Maryland General Assembly
2021 Session
FISCAL AND POLICY NOTE
Third Reader
Senate Bill 609 (Senators Augustine and Hayes)
Finance Ways and Means
Economic Development - Maryland Industrial Development Financing Authority
- Marketing Plan
This bill requires the Maryland Industrial Development Financing Authority (MIDFA) to
(1) work to increase the utilization of its programs and funds to assist minority and
women-owned businesses in the State and (2) consider incentives to encourage the use of
its credit insurance services. MIDFA must develop and implement a marketing plan to
increase awareness of its credit insurance services. The plan must identify methods to
increase the utilization of such services by community banks and other financial
institutions that make loans to historically disadvantaged businesses and businesses in rural
areas of the State.
Fiscal Summary
State Effect: To the extent that the bill increases MIDFA’s programmatic activity,
nonbudgeted revenues and expenditures for the Industrial Development Fund increase,
beginning as early as FY 2022. The amount cannot be reliably estimated. The Department
of Commerce can develop and implement a marketing plan for MIDFA with existing
budgeted resources.
Local Effect: None.
Small Business Effect: Potential meaningful.
Analysis
Current Law: MIDFA promotes significant economic development by providing
financing support to manufacturing, industrial, and technology businesses located in or
moving to Maryland. While MIDFA is authorized to issue tax-exempt bonds, it does not
provide direct loans but rather insures bonds, loans, and certain other types of transactions
from financial institutions. The program promotes private-sector financing by providing
insurance to transactions resulting in reduced credit risks and enabling better terms.
Recipients generally must pay bond issuance fees and annual premiums on insured
transactions.
When MIDFA issues bonds, State law specifies that it is in the public interest that MIDFA
try to achieve a goal that 10% of the (project’s) facility users are minority business
enterprises; however, failure to achieve that goal does not affect in any way the validity or
enforceability of MIDFA’s bonds, findings or determinations, or agreements.
State Fiscal Effect: To the extent that the bill increases MIDFA’s programmatic activity,
nonbudgeted revenues and expenditures for the Industrial Development Fund increase
beginning as early as fiscal 2022. The amount cannot be reliably estimated. For context,
MIDFA’s fiscal 2022 opening fund balance is estimated to be $15.8 million, with
$0.4 million in revenues and $3.0 million in expenditures. Commerce can use existing
social media channels, email marketing, and other existing outreach and informational
channels to generate promotional content targeted to minority and women-owned
businesses. The operational impact is limited to reallocating staff resources among the
department’s various programs.
Small Business Effect: Small businesses may benefit from efforts to increase the
utilization and marketing of MIDFA’s credit insurance services.
Additional Information
Prior Introductions: None.
Designated Cross File: None.
Information Source(s): Department of Commerce; Department of Legislative Services
Fiscal Note History: First Reader - February 18, 2021
rh/vlg Third Reader - March 31, 2021
Analysis by: Stephen M. Ross Direct Inquiries to:
(410) 946-5510
(301) 970-5510
SB 609/ Page 2


Statutes affected:
Text - First - Economic Development - Maryland Industrial Development Financing Authority - Marketing Plan: 5-404 Economic Development
Text - Third - Economic Development - Maryland Industrial Development Financing Authority - Marketing Plan: 5-404 Economic Development