2003 Section 108 Project Summary - Maryland

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Economic Development

Community Empowerment Lending Initiative
BORROWER: BALTIMORE
STATE: MD
COMMITMENT AMOUNT: $1,500,000

The City of Baltimore was awarded a Section 108 loan guarantee for $1,500,000 to be used in conjunction with a $1,500,000 Economic Development Initiative (EDI) award to assist in capitalizing the Community Empowerment Lending Initiative Corporation (CELI). The CELI will make Section 108/EDI assisted loans for small businesses in the Baltimore Empowerment Zone (EZ). The CELI is for a for-profit, stock owned, small business fund structured as a financial holding company comprised of a for-profit lending subsidiary and a not-profit lending subsidiary. Empower Baltimore Management Corporation (EBMC), the non-profit administrator of Baltimore's federally designated EZ, the Capital Access Group, LLC (CAG), and the City will jointly develop CELI. The CELI's not-profit lending subsidiary will receive the Section 108/EDI funding to lend to business borrowers in the EZ. The EBMC estimates that this lending activity in the EZ will cause the creation of more than 1,000 new jobs that will be made available to low-and moderate-income people.

Housing

East Baltimore Development Project
BORROWER: BALTIMORE
STATE: MD
COMMITMENT AMOUNT: $21,200,000

The City of Baltimore, Maryland has been awarded a $21,200,000 loan guarantee under Section 108 to finance activities associated with the redevelopment of the Historic East Baltimore area near Johns Hopkins Medical Institutions. This phase includes the acquisition of properties, relocation of households and businesses, and demolition of structures, many of which are vacant. The neighborhood is located in the City's Federally-designated Empowerment Zone and the City has approved establishment of a Tax Increment Financing District for the area. East Baltimore Development, Inc. (EBDI), a non-profit corporation, will have the lead role in coordinating the activities under a subrecipient agreement with the City. Guaranteed Loan Funds will be used to carry out eligible activities of acquisition of real property, relocation assistance, clearance and demolition, and payment of issuance and other costs of financing the Section108. These activities will meet the criteria for the national objectives of benefiting low- and moderate-income persons on an area-wide basis and the elimination of slum or blight on an area basis.