Need funding for your business? Maryland has resources to help you find funding.
Types of Business Financing
When you need money for your business, there are two main ways to get it: equity financing and debt financing.
Equity Financing
What is Equity Financing?
Equity financing means selling part of your business to get money. Most small businesses don’t sell shares of their company to raise money, so equity financing is not used often by small businesses.
Where Does Equity Money Come From?
- Non-Professional Investors
Friends, family, employees, and business associates may invest in a small business. - Professional Investors
Venture capitalists are groups that invest in businesses hoping to make a profit. Venture capital groups can consist of wealthy individuals, financial institutions, and/or government-assisted sources.
TEDCO (Technology Development Corporation)
TEDCO is an independent organization that supports Maryland startups. It offers business assistance and early-stage funding to help new companies grow in Maryland’s innovation economy.
Debt Financing
What is Debt Financing?
Debt financing means borrowing money that you must pay back later.
Where can you borrow money?
- Private Lenders
You can borrow money from several types of private entities, such as Banks, savings and loan companies, and commercial finance companies. - Government Help Programs
State and local governments offer many programs to help small businesses grow. - Local Agencies
Your local economic development agency can provide information about programs in your area that might help you.
Additional Resources
Learn about state funding options, such as grants and tax credits, by exploring the Maryland Financial Incentives for Businesses database.