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Archived News Articles
Small Poultry Growers May Qualify For MCE Financing(March 2008) Micro-enterprises are small businesses with five or fewer employees or whose financing need is less than $50,000. MCE works with area banks, the area’s Chambers of Commerce, federal and State government, and the SU Small Business Development Center to help our smallest businesses grow and succeed. Part of its funding is from the US Department of Agriculture (USDA). For further information or to obtain an application, please call 410-546-1900. Help Your Community, Save on Taxes!!(Business Journal-Chamber May 2008) Mr. Joseph Morse, Editor of African American Pride Magazine, is Chairman of the Board of Maryland Capital Enterprises, Inc. and was excited to learn that MCE was awarded the opportunity to sell Maryland State Tax Credits by DHCD. This distinction allows businesses that donate to MCE to receive tax credits equal to 50% of the value of the donation. These tax credits may be claimed in addition to state and federal deductions for charitable contributions. Mr. Morse explains, “The tax credit program is an outstanding incentive for businesses to save tax dollars while directly strengthening the economic environment of the Eastern Shore.” Giving to MCE through the Tax Credit Program can help businesses by reducing state tax liability while turning it into a targeted community investment. Receiving Maryland tax credits is a simple process and will increase corporate visibility within the community as well as regionally on the Shore. Since its inception MCE has helped more than 800 entrepreneurs with business start up advice and technical assistance and has loaned out close to $875,000 in small business start up funding. Corporate donations can help MCE reach its overall goal to increase business and economic development. Receiving tax credits is an additional incentive for area businesses to participate in MCE’s program and help accomplish its mission. For more information on participating in MCE’s Tax Credit Program please contact 410-546-1900. PRESS RELEASE For immediate release Contact Hayley Gallagher @ 410-546-1900 Duncan, St. Fleur, & Ward Join The board of directors of Maryland Capital Enterprises, Inc. has added James W. Duncan, Hebreux St. Fleur, and Frank J. Ward III to its membership, according to Joseph E. Morse, Chairman of the 14-member board of the micro-business finance and assistance firm. Duncan is the president of Navtrak, Inc., located in Salisbury, MD. Navtrak is the industry leader in providing GPS systems, fleet management and vehicle tracking system solutions for businesses with mobile workforces. He resides in Easton, MD. St. Fleur is the owner and CEO of Hebrew Quality Construction, Inc. in Salisbury, MD where he and his family also reside. The firm operates Hebrew Quality Insulation, Hebrew Quality Housing Development and Rentals, and Hebrew Investment. Ward is the founder and CEO of The Money Centre, Ltd. mortgage company and Ward Construction, Inc., both based in Salisbury, MD. A native of the Shore, he and his family reside in Pocomoke City, MD. Maryland Capital Enterprises is a micro-business support firm formed in 1998 that provides loans and assistance to small businesses on Maryland’s Eastern Shore. Based in Salisbury, MD, the firm is certified by the US Dept. of the Treasury as a Community Development Financial Institution. It is also certified as an Intermediary Microlender for the Small Business Administration and the US Dept. of Agriculture.
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Do Well by Doing Goodby Samuel F. Slabaugh, Sr. CFP™
One such non-profit is Maryland Capital Enterprises (MCE), an organization whose mission is to “Help economically disadvantaged residents of Maryland's Eastern Shore become self-sufficient through entrepreneurship by aiding in the creation and expansion of micro-businesses owned by minorities, women, and others with low incomes and limited assets.” The organization accomplishes this mission by making loans to persons starting a business who are often not eligible for traditional financing. One beneficiary of this mission is Vanessa Jones-Warner of God’s Little Angels Childcare in Salisbury, Maryland. Ms. Jones-Warner was self-employed with an in-home day care. She wanted to expand but did not know how to proceed. With counseling from MCE Ms. Jones-Warner created a business plan and purchased a building. She needed more equipment to supply a larger building but was denied a loan by her bank. MCE loaned Ms. Jones-Warner the money for equipment and she was able to open the larger location that now employs three people. Says Ms. Jones-Warner, “MCE helped me take my business to the next level.” The tax credit incentive allows for significant leverage of corporate dollars. Tax credits bring more value to a corporate bottom line than charitable deductions. Charitable deductions only reduce the taxable income whereas tax credits reduce tax paid dollar-for-dollar. For example, a company with $100,000 in profits that made a $10,000 donation to charity would reduce their taxable income to $90,000 and end up paying $7,425 in Maryland taxes instead of $8,245. The same company that donates $10,000 to a charity with tax credits would receive the deduction and receive a credit of $5,000. This would reduce their state tax bill from $8,245 to $2,425. (Not included in this example is the additional impact of the Federal deduction.) In short, these credits granted by the State allow businesses to redirect what would otherwise be tax dollars toward community development. One local company that has leveraged community investment is First Shore Federal. This bank has given to many organizations offering tax credits such as Habitat for Humanity, Pocomoke Marketing Partnership for Pocomoke River Discovery Center, Salisbury Neighborhood Housing Services and Maryland Capital Enterprises. Asked if the tax credits were the motivation for the gift, CEO Marty Neat said, “Sure, they basically give the opportunity to double your gift. The way they are structured, you get to give your gift as well as what you would have paid in taxes. Is it the only consideration? No, but it certainly is a factor.” Maryland’s Department of Housing and Community Development awards a total of $1 million in tax credits to worthy projects that creatively address community issues. The awards process is competitive and place both small and large organizations on a level playing field. Dan Aker, Program Officer of Neighborhood Revitalization Division, thinks one of the benefits of the program is that it “Does not entail any money on the part of the State, just crediting $1 million in tax credits.” Asked why this program has been so successful, Mr. Aker said, “There really is a double benefit for companies. First of all the credit but in addition, the business that buys the tax credit receives the tax deduction on the Federal level.” Of course, one does not give because of the tax credit; community investment should be made for the right reasons. Never let the tax tail wag the dog; an investment should make good community sense and not just tax sense. For companies who are already investing in the community, leveraging a gift with tax credits is the logical course of action. For companies who are not yet investing but wish to start, consider diverting tax dollars to an organization with credits to give away. A list of Maryland organizations with tax credits available can be found at www.neighborhoodrevitalization.org under Community Investment Tax Credits. Samuel F. Slabaugh, Sr. is a CERTIFIED FINANCIAL PLANNER™ professional with EST Financial Group in Delmar, Delaware. He specializes in retirement planning, estate planning and small business consulting. PRESS RELEASEFor immediate release Maryland Capital Enterprises recently received $250,000 from the US Department of Agriculture’s Rural Development Administration to support its micro-business loan program for businesses on Maryland’s Eastern Shore. MCE was also certified as a USDA/ IRP (Intermediary Relending Program) Lender. The funds are to be used for small business loans up to $50,000. Loan applications are being accepted now. Maryland Capital Enterprises is a micro-business support firm formed in 1998 that provides loans and assistance to small businesses on the Maryland Eastern Shore. Based in Salisbury, MD, the firm is certified as a SBA Intermediary Microlender for the State and as a US Dept. of the Treasury Community Development Financial Institution. It is supported by the US Dept. of Agriculture, US Treasury Dept., US Small Business Administration, several MD Eastern Shore county governments, private foundations, and interest and fees earned. Its chairman is Joseph E. Morse, JD and its executive director is Hayley Gallagher. Call 410-546-1900 for more information. |
In America, it's up to individuals to invest in their community. Civic-minded corporations are driven by visionaries, and most of those movers and shakers agree: when the tide comes in, everyone's boat rises. The State of Maryland approves of this idea, so a program has been created that grants tax credits in exchange for donations to non-profits who actively develop community investment. Last Modified: June 1, 2009 