Maryland has gone to greater lengths than most states in financing new businesses and the expansion of existing ones, a survey released last week by the Maryland Department of Economic and Community Development revealed.
The survey compares Maryland's financial assistance efforts with those of other states.
Between 1975 and 1979, industry in Maryland received more than $677 million in federal, state and local assistance, of which $500 million was in state and local programs in conjunction with Maryland's banking community. Between 1970 and 1975, that same public/private sector cooperation contributed a total of $300 million to aid industrial expansion and relocation in the state, the survey showed.
Of the 13 various forms of financial assistance available nationwide, two states offer eight of those programs, three offer seven and Maryland offers six along with eight other states. The remaining 36 states in the nation offer five or fewer of the available programs, the report found.
The survey, conducted by the department's Office of Development Planning, showed that the most widely used assistance program is locally funded industrial revenue bonds (46 states offer this program). The next most popular is medium-term working programs (34 states). Direct loans by states and state-funded industrial revenue bonds were tied for third (24 states) with local programs for constructing shell buildings (23 states) a close fourth. Only one state, Connecticut, offers a local loan guarantee program.
The 182-page report entitled, "Financial Assistance to Maryland Industry," goes into a detailed analysis of Maryland's available financial assistance programs, and lists the strengths and weaknesses of each one.