MCBIF - The Fund

History. In 2008, the Maryland General Assembly passed and in November 2008 the general public endorsed a bill which sets the stage for video lottery terminals (VLT), commonly called slot machines, at race tracks and other venues. This legislation also establishes the guidelines for distribution of slot proceeds. The law (Section 9-1A-35) allocates 1.5% of all proceeds generated by gaming venues to a fund for small, minority and women-owned businesses (Targeted Businesses) in an account under the authority of the Board of Public Works (VLT Fund Pool). The Board of Public Works has executed a memorandum of understanding with the Department of Business and Economic Development to administer the VLT Fund Pool by contracting management to private sector fund managers.

There are currently six (6) areas specifically designated to receive slot facilities:

Three of these facilities have been operating long enough to contribute to the VLT Fund Pool. They are Cecil County at Perryville, Worcester County at Ocean Downs Race Course and Anne Arundel County at the Arundel Mills Mall. The fourth recently opened casino facility located at Rocky Gap in Allegany County will begin contributing to the VLT Fund Pool in late 2013. Deposits to the VLT Fund Pool for the initial allocation totaled $7.8 million. Three fund managers were selected to provide financing assistance to the Targeted Businesses. The three fund managers are Meridian Management Group (MMG), Anne Arundel County Economic Development Corporation (AAEDC) and Maryland Capital Enterprise (MCE). Additional VLT Fund Pool allocations will be available each year.

Purpose. The purpose of the Maryland Casino Business Investment Fund (MCBIF is to provide access to capital for small businesses, minority owned businesses, women owned businesses and veteran owned businesses (Targeted Businesses) in Maryland. MCBIF’s geographic focus is in areas which are in the designated radius (designated by zip code) of casino facilities. However, Targeted Businesses outside of the designated radius of casino facilities are also eligible for assistance. MCBIF will provide affordable and flexible financing to assist in the acquisition of businesses, equipment, owner occupied commercial real estate, vehicles, furniture/fixtures, and lease hold improvements. It will also provide working capital assistance for maintaining and improving business cash flow; marketing; adding personnel; inventory expansion; and obtaining professional consulting assistance. In addition, it will refinance existing debt under certain circumstances.

Fund Manager. MMG is a fund manager whose family of funds has the capital and expertise to invest in small, minority, and women-owned businesses. MMG is a multi-faceted fund management company that is focused on serving the underserved and strengthening Maryland’s economic base through the growth and development of small, minority and women-owned businesses. MMG was awarded $3.5 million of the initial VLT Fund Pool. MMG will manage and invest the capital into businesses located within the Targeted Areas and throughout the State of Maryland. The name MMG has chosen for the fund is the Maryland Casino Business Investment Fund (“MCBIF”). The management of MCBIF includes:

MMG has partnered with Prince George’s Financial Services Corporation (FSC First) to provide assistance in management of the MCBIF portfolio; micro loan administration and preparation of MCBIF reporting documents. FSC First’s mission is to provide small and minority-owned businesses access to creative, flexible, and innovative financing solutions for their operations. They accomplish this by providing direct loans, accounts receivable financing, and micro enterprise loans. MMG has also partnered with the BIZ CENTER, Inc., in Prince George’s County to provide micro loan administration.