Currently, the interest rate is fixed at 9.25% with a special rate of 7.25% for businesses that are at least 20% women-owned.
Loan terms range from:
The business must be headquartered or have its primary office in Baltimore City.
Technical Assistance (TA) Requirement
All applicants must complete an approved Technical Assistance small business training program prior to submitting a completed application. The one-on-one TA is free and customized to each borrower's level of knowledge, experience, and availability.
Collateral and Personal Guarantees
Borrowers must have a reasonable credit record with consistent payments for a period of at least 1 year prior to application; no bankruptcies that have been discharged within the last 2 years, and no outstanding tax debts that are not part of a repayment plan.
Use of Funds
The loan can be used to rent or build out a leased space, to purchase inventory, supplies and materials, to purchase or lease furniture, fixtures, machinery and equipment, to refinance existing high interest debt, and as operating capital. Loans cannot be used to purchase real estate or for real estate construction or development. Loans cannot be used to purchase a franchise.
The following nonrefundable fees and charges will be charged at application:
The following fees and charges will be charged at loan closing and will be deducted from the loan proceeds:
Business Plan and Financials
Borrowers must complete a full, written Business Plan.
Financials required include:
All co-owners and co-signers are also required to provide:
Additional documents may be required or recommended as relevant.
Business Bank Account
Borrowers are required to have or open a business bank account for automatic withdrawal of payments due.
Business Banker Meeting
Prior to the closing of the loan, borrowers must also participate in a brief education session with a small business representative from a participating bank to learn about traditional financing options and other support available, and to facilitate future growth.