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 slot 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/public sector fund managers.

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

  1. BALTIMORE CITY (Horseshoe Casino)
  2. CECIL COUNTY (Hollywood Casino Perryville)
  3. ALLEGANY COUNTY (Rocky Gap Casino Resort)
  4. ANNE ARUNDEL COUNTY (Maryland Live Casino)
  5. WORCESTER COUNTY (Casino at Ocean Downs)
  6. PRINCE GEORGE’S COUNTY (MGM National Harbor)

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, flexible, and patient capital 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.