Maryland's economy has been in a state of crisis for the last few months. So many companies have laid off workers - especially in the construction industry - that in January 2010, Maryland's unemployment rate had reached an astounding 8.3 percent. Unemployed workers cannot meet the mortgage payments on their homes, so Maryland's home foreclosure rates have shot up as well. At the end of 2009, one out of every 54 homes in Maryland was going through the process of foreclosure.

At the same time, though, Maryland is considered one of the best states in which to start a small business, because of its proximity to nearby cities such as Washington D.C. and New York City. In 2009, CNN rated Baltimore as the tenth best city nationwide in which to start a small business, such as a cleaning business, a moving company, or a professional organizing business. Many unemployed Marylanders choose to open a business such as a Baltimore self storage facility, which can provide a family with housing as well as an income (many self storage owners live on site at their businesses).

What resources are available to unemployed would-be Maryland entrepreneurs? Several loans and grants are available to small businesses:

· Maryland is one of eight states that offers the federal Self-Employment Assistance Program (http://workforcesecurity.doleta.gov/unemploy/self.asp). Under this program, a person who has just lost a job can file for self-employment assistance instead of unemployment. The self-employment assistance can be used to get a home business off the ground.

· The Baltimore Development Corporation (http://www.baltimoredevelopment.com/assistance/overview.aspx) offers many resources to small businesses locating in the Baltimore area, including helping small business owners to work their way through city approval processes such as licensing and zoning. The BDC also helps business owners by providing them with low-interest loans. For example, the BDC maintains two loan funds: the Revolving Loan Fund and the Working Capital Loan Funds. These loans can be used to acquire land and equipment, including paying for demolition, construction, and relocation. In addition, Baltimore offers city bonds that can be used for capital improvements such as business expansions.

· The Maryland Small Business Development Center Network (http://www.mdsbdc.umd.edu/) provides small businesses with counseling, training, certification information, and financing. For example, it provides small loans (for as little as $5,000) to entrepreneurs who are starting offices in their homes, through SOHO, the Small Office Home Office Loan. It also offers "micro-loans," loans of very small sums of money, ranging from $100 to $25,000, which can be used to buy start-up inventory, furniture and equipment, or as working capital in a business' early days. The MSBDC can also counsel business owners through the process of applying for ordinary bank loans or for federal Small Business Administration loans.

Maryland also offers assistance to families and individuals, whether or not they are starting businesses, through programs like the Baltimore Cash Campaign, which provides free financial counseling, tax preparation, and financial aid filing assistance.

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