Microenterprise Loan Program

The Maryland Microenterprise Loan Program expands opportunities for microenterprise development, creates new opportunities for small business development and sustains local economies in Maryland communities. The Microenterprise Loan Program ​is designed to provide entrepreneurs with flexible financing for microenterprise start-ups and expansions within designated Sustainable Communities and Priority Funding Areas throughout the State. The Maryland Department of Housing and Community Development has established partnerships with community-based microlenders as Intermediaries that originate and administer microenterprise loans.

Our local partners understand their local economy and can provide micro-entrepreneurs with easier access to training and technical assistance. This new public-private partnership will provide better access to capital for establishing and sustaining micro-businesses.

INTERMEDIARY MICROLOAN PARTNERS

Anne Arundel Economic Development Corporation
2660 Riva Road, Suite 200 Annapolis, MD 21401
P: 410-222-7410 | E: info@aaedc.org

Eastern Shore Entrepreneurship Center
8737 Brooks Drive, Suite 101 Easton, MD 21601
P: 410-770-9330 | F: 410-770-5398 | E: info@ventureahead.org

Maryland Capital Enterprises, Inc. – Salisbury MD (Serving Anne Arundel, Baltimore, Caroline, Dorchester, Kent, Queen Anne, Somerset, Talbot, Wicomico, Worcester Counties and Baltimore City)
P: 410-546-1900 | W: www.marylandcapital.org

Prince George’s Financial Service Corporation – Largo MD
(Serving Prince George’s County)
P: 301-883-6900 | W: fscfirst.net

PLEASE CONTACT THE INTERMEDIARY DIRECTLY TO RECEIVE AN APPLICATION

ELIGIBLE BUSINESSES

  • Retail businesses
  • Manufacturing businesses
  • Goods and Services related businesses
  • Must be located in a designated Sustainable Community area
  • Small business cannot exceed $500,000 in annual revenue
  • Not more than 5 employees at time of application

ELIGIBLE USES OF FUNDS

  • Working capital
  • Marketing/planning/feasibility studies
  • Real estate acquisition down payment
  • Minor renovations
  • Minor leasehold improvements
  • Machinery and equipment
  • Certain other costs associated with opening or expanding a small business

INELIGIBLE USES OF FUNDS

  • No residential or transient living businesses, multifamily or single-family housing developments, nursing homes, assisted living facilities, crisis care centers, group homes, transitional housing, and homeless shelters
  • No facilities such as community halls, fire stations, hospitals, colleges, or universities
  • No adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, massage parlors, pawn shops, tanning salons, or tattoo parlors
  • No home-based businesses

MICROLOAN TERMS

  • Microenterprise Loan Program portion of loan cannot exceed $50,000
  • Additional funds may be added to project by Intermediary
  • Rates up to 12%
  • Loan term cannot exceed 5 years
  • Collateral is required and may include, but is not limited to personal guarantees, liens on business assets and pledges of accounts
  • No prepayment penalties

MORE INFORMATION

CONTACT: Business Lending Team
E: dhcd.businesslending@maryland.gov​
P: 301-429-7408

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