SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G....
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![Page 1: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/1.jpg)
SMALL BUSINESS FINANCING Division of Neighborhood Revitalization
Martin O'Malley
GOVERNOR
Anthony G. Brown
LT. GOVERNOR
Raymond A. Skinner
SECRETARY
Clarence J. Snuggs
DEPUTY SECRETARY
![Page 2: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/2.jpg)
Business Lending Programs
• Neighborhood BusinessWorks Loan Program
• Microenterprise Loan Program
• Linked Deposit
• Maryland Capital Access Program
![Page 3: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/3.jpg)
NEIGHBORHOOD REVITALIZATION
Linked Deposit ProgramProgram is for Certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banks
• Businesses certified by the Maryland Department of Transportation (MDOT) as a Minority Business Enterprise (MBE) are eligible
• 2% interest rate reduction on loans from enrolled financial institutions• First National Bank, The Columbia Bank, Industrial Bank• Loans are underwritten and approved by the financial institution• Maryland State Treasurer’s office deposits matching funds in a CD at the
lending institution• Loans may not exceed $1 million• Loan terms can not exceed 10 years• Points charged by lender can not exceed 1% • Project or activity must be in Maryland
Maryland Capital Access Program (MCAP)Program allows lenders to make loans that fall slightly outside of their normal credit guidelines.
• A loss reserve account is created to strengthen applications with weak credit or collateral
• Lender, Borrower, and DHCD creates a loss reserve account at the lending institution for 6% of the loan amount.
• The lender contributes 1.5%, the borrower contributes 1.5%, and DHCD puts in 3%
• Program lenders – BB&T and PNC• The borrower applies directly to one of the lending institutions• The loan is underwritten and funded by the lending institution • Eligible loan amounts are from $10,000 - $1 million • Any type of commercial loan qualifies, lines of credit and term loans
Neighborhood Business Works Loan Program
Program provides gap financing to new or expanding small businesses and nonprofit organizations in Sustainable Communities throughout the State
• Loans from $10,000 - $500,000 • No more than 50% of total project cost• Loan terms from 5 – 15 years• Interest rates from 3% - 5%• Minimum 5% of total project cash contribution from applicant • 75% collateral coverage and personal guarantees required• Primary lender required• This loan is underwritten and funded by the State
Micro Lending Loan ProgramProgram provides financing to new or existing small businesses and nonprofit organizations in Sustainable Communities throughout the State
• Loans from $5,000 - $35,000 • Loan terms up to 5 years• Interest rates competitive• collateral and personal guarantees required• This loan is underwritten and funded by the State
![Page 4: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/4.jpg)
Eligible Applicants
• Maryland-based small businesses (small business as defined by the U.S. Small Business Administration)
• Nonprofit organizations whose activities contribute to a broader revitalization effort and whose projects are intended to promote investment in commercial districts or town centers
• Commercial Property Owners
• Commercial Property Tenants
• Developers
• Note: Local governments are not eligible applicants.
![Page 5: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/5.jpg)
NEIGHBORHOOD BUSINESSWORKS
• Eligible Projects/Use of Funds• New construction or rehabilitation • Leasehold improvements• Real estate acquisition • Manufacturing • Retail/Franchise• Market/Planning/Feasibility studies• Machinery and equipment• Furniture, fixtures and equipment• Working capital
![Page 6: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/6.jpg)
Neighborhood BusinessWorks
Program provides gap financing to new or expanding small businesses and nonprofit organizations in designated Sustainable Communities throughout the State
• Eligible uses: Commercial building rehab or leasehold improvement, equipment & furniture, inventory and working capital
• Loans from $10,000 - $500,000
• Financing up to 50% of the total project cost
• Commitment for other 50% of project must be committed
• Loan terms from 5 – 15 years - Interest rates from 3% - 5%
• Minimum 5% of total project as cash contribution from applicant
• Minimum 75% collateral coverage and personal guarantees required
• This loan is underwritten and funded by the State
![Page 7: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/7.jpg)
Sustainable Communities
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Sources & Uses: Itemize how you plan to fund this project
Breakdown of total project costs by funding source:
(A) Use of Funds
(B) Total Costs
(C) NBW
Request
(D) Other
Lender(s)
(E) Applicant’s Contribution
Building/Site Acquisition $ $ $` $
Building Construction/ Expansion/Improvements
$ $ $` $
Pre-Development Costs $ $ $ $
Furniture, Fixtures, Equipment $ $ $ $
Inventory $ $ $ $
Start-up Costs $ $ $ $
Working Capital $ $ $ $
Other (explain) $ $ $ $
TOTAL PROJECT:
$ $ * $ $ **
*Not to exceed 50% of total project costs. **Minimum of 5% of total project costs.
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Microenterprise Loan Program
Program provides financing to new or existing small businesses and nonprofit organizations in designated Sustainable Communities throughout the State
• Eligible uses: Working capital or other approved business expense
• Loans up to $35,000
• Loan term up to 5 years
• Rates are from 5% - 7%
• Loan underwritten by the State or Intermediary Microlending Partners:
Maryland Capital Enterprises
Economic Development Group
Prince George’s Financial Services
![Page 10: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/10.jpg)
Linked Deposit
Program provides more affordable capital to MDOT certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banks for businesses in Maryland
• Eligible uses: business restructuring or and other business expenses deemed eligible by participating bank and program guidelines
• Borrowers receive a reduced rate that is 2% below market
• Participating banks: First National Bank, The Columbia Bank, Industrial Bank
• Loans are underwritten and approved by the financial institution
• Maryland State Treasurer’s office deposits matching funds in the amount of the loan at the lending institution
• Loans may not exceed $1 million or a term of 10 years
• Points charged by lender can not exceed 1%
![Page 11: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/11.jpg)
Maryland Capital Access Program
Program allows lenders to make loans that fall slightly outside of their normal credit guidelines for businesses located in Priority Funding Areas throughout the State.
• Eligible uses: Any commercial term loan deemed qualified by lender
• A loss reserve account is created to strengthen applications with weak credit or collateral
• Lender, Borrower, and DHCD creates a loss reserve account at the lending institution for 6% of the loan amount.
• The lender contributes 1.5%, the borrower contributes 1.5%, and DHCD puts in 3%
• Program lenders – BB&T and PNC
• The borrower applies directly to one of the lending institutions
• The loan is underwritten and funded by the lending institution
• Eligible loan amounts are from $10,000 - $1 million
![Page 12: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/12.jpg)
Neighborhood BusinessWorks/Microenterprise
Project: Potomac Gourmet Pantry
Loan Amount: $300,000
Location: Prince George’s County
Jobs Created: 25
Loans Closed: October 2010
22
Project: Babe (A Boutique)
Loan Amount: $35,000
Location: Baltimore City
Jobs Sustained/Created: 2
Loans Closed: June 2011
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Linked Deposit/Maryland Capital Access
Borrower: Amtrac Railroad
Contractors of Maryland, Inc.
Loan Amount: $431,660
Location: Washington County
Jobs Sustained: 3
Loans Closed: May 2009
22
Borrower: Ed Paton Insurance
Loan Amount: $75,000
Enrolled by: BB&T
Location: Prince George’s
Jobs Retained: 3
Loan Closed: June 2010
![Page 14: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/14.jpg)
Neighborhood BusinessWorks Projects
Arrow Bicycle, Hyattsville, MD Joie De Vivre, Cambridge, MD
Big Bad Woof, Hyattsville, MD Roscoe’s Neapolitan Pizzeria, Takoma Park, MD
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Limerick Pub Wheaton
Before After
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John L Williams Funeral Directors Baltimore City
Before After
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Pemberton Café Salisbury
Before After
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Joie de Vive Cambridge
Before After
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Neighborhood BusinessWorks
• Since 1996, Neighborhood BusinessWorks has:
• Loaned more than $62 million to 300+ businesses, creating 6,170 jobs across Maryland and leveraging
$206 million in private investment
• Loaned nearly $16 million to 88 businesses in historic Main Street Maryland communities
![Page 20: SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence.](https://reader038.fdocuments.in/reader038/viewer/2022103111/5517f869550346c1568b4eb7/html5/thumbnails/20.jpg)
Thank You
For More Information Contact:
Michael Haloskey, Director Business Lending
Phone: 410-514-7237
Email: [email protected]
Cheivelle Hill, Senior Loan Underwriter
Phone: 410-514-7245
Email: [email protected]