Linked Deposit

​​​​ This program is not currently active. Please contact us to learn more about our other lending programs.

​The Maryland Linked Deposit Program is a statewide initiative designed to stimulate opportunities for certified Minority Business Enterprises and Small Businesses by reducing the interest rate on loans they obtain from participating banks. Certified Minority Business Enterprises and Small Businesses that notify the Maryland Department of Housing and Community Development prior to obtaining qualifying loans from enrolled financial institutions may ​be able to receive up to a 2% discount on their loans. The Linked Deposit Program looks to stimulate economic opportunities, enabling small and minority-owned businesses enterprises access to affordable capital in order to grow and expand their business.

Linked Deposit Fact Sheet (PDF)

Eligible Applicants

To be eligible, a borrower must be a certified minority business enterprise in good standing with the Maryland Department of Transportation or a small business in good standing with the Maryland Department of Assessments and Taxation and the purpose of the loan must be for a project or activity located in Maryland. Borrowers must apply to the Maryland Department of Housing and Community Development to be eligible for the Linked Deposit Program.

Eligible Lenders

Lenders that may participate are those that the Maryland State Treasurer’s Office has designated as eligible to participate in the Linked Deposit Program.

View a list of participating lenders (PDF)

How It Works

  • An eligible applicant, or a participating lender, submits a brief application, via the Internet or on a paper form, to the Linked Deposit Program, administered by the Maryland Department of Housing and Community Development.
  • After verifying the applicants eligibility, the department forwards the application to all banks enrolled in the program. In the cases where the lender has applied on behalf of the borrower, the department notifies the lender that the Borrower is eligible.
  • The department provides the borrower a list of the participating banks and the borrower contacts participating banks to complete their full application requirements. Participating banks may also contact the applicant directly unless the lender has applied on behalf of the Borrower.
  • The bank lenders underwrite the requested loan according to their standard underwriting, with an interest rate that is up to 2% less than the rate the bank would charge for a loan of similar purpose and term.
  • Upon loan approval and acceptance by the borrower, the bank enrolls the loan in the Linked Deposit Program.
  • Once a qualifying loan is enrolled, the Maryland State Treasurer’s Office deposits an amount equal to the amount of the loan from the bank that issued the loan. The Treasurer accepts an interest rate on that deposit that is reduced commensurately.
  • Borrowers enrolled in the Program will receive up to a 2% interest rate reduction benefit for the term of the loan, so long as that borrower remains in good standing as a certified Minority Business Enterprise or small business with the State of Maryland.
  • Loans enrolled in the Linked Deposit Program are not a debt of the State of Maryland, nor is the State liable to any financial institution for payment of the principal or interest on a loan assisted by a linked deposit.

Additional Benefits

  • The Linked Deposit program encourages banks to expand lending to disadvantaged businesses.
  • Linked Deposit Program loans may be combined with other loan programs.
  • The Linked Deposit interest rate is available for term loans only or loans with fixed rates with one disbursement.
  • Leverages $50 million of State funds to reduce the cost of capital for certified Minority Business Enterprises and small businesses.

General Restrictions

  • Loan terms cannot exceed 10 years.
  • Loan proceeds must be used for projects located in Maryland.
  • Points charged by the lender cannot exceed 1% of the loan amount.
  • A loan may not be used for the furtherance of sectarian or religious purposes or instruction.

How to Get Started

More Information

Please contact the Business Lending Team
Business Lending Email:​
Business Lending Hotline: 301-429-7408​​