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Article Archives: Maryland
Maryland Linked Deposit Program
Here's how the program works: The minority business enterprise submits an application to the Linked Deposit Program, which verifies the applicant's certification and forwards the application to banks enrolled in the program. The applicant is given the list of participating lenders and is advised to contact a lender who can complete the loan application. The lender makes the loan according to standard underwriting procedures but with an interest rate 2 percent below what the bank would charge for a loan of similar purpose and term. The loan is then enrolled in the Linked Deposit Program.
Why do lenders participate? The loan is backed by an insured certificate of deposit that the state treasurer's office buys from the bank-at a rate 2 percent below the market rate-to enable the bank to make the reduced rate loan to the minority business enterprise. In this way, the state increases capital available to minority businesses and reduces the potential risks to lenders. Loan terms cannot exceed 10 years and must be used for projects in Maryland. For more information on the Linked Deposit Program, contact Charles Day, program manager for DHCD's Division of Neighborhood Revitalization, at (410) 514-7245 or firstname.lastname@example.org.
Supporting Affordable Housing through Tax Credit Syndication
As a tax credit syndicator, CAHEC structures equity funds using investors' capital. CAHEC's most recent fund is the South Carolina Preservation Fund II LP (SCPF II). SCPF II is a $32 million equity fund designed to preserve and renovate a portfolio of older, multifamily housing properties in South Carolina. The targeted portfolio includes 41 properties with a total of 1,548 units. Although all investments in SCPF II were fully subscribed in 2008, banks can invest in other CAHEC equity funds as they are developed. To learn more, visit their Web site or e-mail Dana Boole or call (919) 788-1803.
Headquartered in Milwaukee, WtW makes its loans from 43 offices in 21 states: California, Delaware, Florida, Hawaii, Illinois, Indiana, Louisiana, Maryland, Michigan, Minnesota, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Virginia, Washington, and Wisconsin.
WtW offices are located in social service agencies affiliated with the Alliance of Children and Families (ACF). ACF agencies screen and provide financial education to borrowers and service the loans. WtW local offices provide financial education to more than three persons for every individual who receives a loan. Investors in WtW include several national foundations, the Community Development Financial Institution Fund of the U.S. Treasury Department, local United Way offices, and financial institutions. Banks can be involved by investing in the national WtW loan fund, by referring to local WtW offices prospective borrowers who do not meet conventional credit criteria, by participating in local WtW loan committees, and by providing grants and in-kind donations to WtW.
Baltimore Redevelopment Efforts Get $50 Million Boost
For more information, contact William Rice of Harbor Bankshares at (410) 675-5722.