As reported in the Delmarva Now, a new incubator opened Thursday in the Pocomoke City Industrial Park designed to nurture young, emerging companies and help them prosper. The incubator represents a partnership between private business, Worcester County Economic Development, Pocomoke City, the University of Maryland Eastern Shore, and the Pocomoke Area Chamber of Commerce. The structure was built by a private business owner and funded with financial assistance from the Revolving Loan Fund at University of Maryland Eastern Shore (UMES).
“Not one penny of county taxpayer dollars is in this project,” said Worcester County Economic Development Director Bill Badger.
The initial stage of the incubator includes two spaces: 1,600 square feet with 24-foot ceilings suitable for industrial space or warehousing, and 1,200 square feet with 8-foot ceilings suitable for offices. . . The industrial park is located within a Maryland Enterprise Zone, which also may make the new businesses eligible for income tax and real property tax credits in return for job creation and investments.
For more information, see the full story in the DelmarvaNow.
Thirty-one enterprise zones are located throughout the state and businesses locating in a Maryland Enterprise Zone may be eligible for income tax and real property tax credits in return for job creation and investments. According to the Department of Business & Economic Development, enterprise zone tax credits include:
- Real property tax credits – Ten-year credit against local real property taxes on a portion of real property improvements. Credit is 80% the first five years, and decreases 10% annually to 30 percent in the tenth and final year.
- Income tax credits – the one-time $1,000 credit per new worker. For economically disadvantaged employees, the credit is $6,000 per employee over three years.
For more information, see the Maryland Department of Business & Economic Development website.
The UMES’s Rural Development Center’s Revolving Loan Fund is aimed at enhancing economic activity in Dorchester, Somerset, Wicomico and Worcester counties. According to the University,
The RLF assists business development and expansion. Funds for the RLF have been provided by the Economic Development Administration (EDA), the U.S. Department of Commerce, and Maryland’s Department of Business and Economic Development (DBED). Our goal is to increase the number of manufacturing jobs in the four counties. RLF lending priority is given to manufacturing businesses that create permanent jobs. The Rural Development Center was the first in the State of Maryland to be involved in Defense Conversion projects funded by the Economic Development Administration.
Features of the Loan Fund:
- Typical Loan Amount — Average $150,000 to $250,000 with a minimum of $25,000, maximum of $500,000
- Maximum Loan Terms — 20 years for real estate and fixed asset; 5-7 years for working capital
- Interest Rate — Below market rates tied to prime interest rate
- Collateral Required — Deeds of trust; machinery, equipment, and fixture liens; personal guarantees
- Participation Maximum — Revolving Loan Fund participation is 50% of the total amount borrowed.
For more information, see the University of Maryland Eastern Shore’s Rural Development Center’s website.