Neighborhood BusinessWorks (NBW) loan program offers flexible financing to new or expanding small businesses and nonprofit organizations. Funding is available for projects located in
Sustainable Community or Priority Funding Area (see
Neighborhood Revitalization Mapper).
NOTICE: Due to limited funding, the Neighborhood BusinessWorks program operates on a first-come, first-serve basis. The applications to date exceed the total amount of funds available until July 2026. Please review the
State Small Business Credit Initiative (SSBCI) Program or contact [email protected] to learn more or be added to our wait list.
Eligible Applicant
The following organizations may apply:
- Maryland-based small businesses (Defined as having 500 or fewer employees)
- Nonprofit organizations
Local governments are not eligible applicants.
Eligible Projects
Small businesses and nonprofit organizations may apply for loans to be used for a wide range of commercial purposes including:
- Mixed-use projects containing both residential and commercial uses in the same building (must include commercial space to qualify)
- Restaurants
- Child Care Facilities
- Markets
- Office space, including coworking and makerspaces
- Retail
- Manufacturing facilities
Uses of Funds
- New construction, rehabilitation, expansion, or other construction
- Machinery and equipment
- Working capital
- Real estate acquisition
- Other costs associated with opening, operating, or expanding a Maryland small business
Project Criteria
To be eligible, a project must meet the following criteria:
- Located within one of the following targeted geographies:
-
Sustainable Community
- Priority Funding Area (see
Neighborhood Revitalization Mapper)
- Opportunity Zone in Allegany County, Garrett County, Somerset County, or Wicomico County
- Transit-Oriented Development area designated by the Maryland Department of Transportation
- BRAC Revitalization and Incentive Zone
- Demonstrate project viability and a positive impact on the neighborhood
Loans must be underwritten and meet program underwriting policies, including:
- Appropriate debt service levels
- Sufficient collateral
- Personal guarantee
- Positive net operating income (NOI)
- Strong business plan
Priority is given to projects that:
- Strengthen community commercial districts
- Add or retain child care slots
- Provide fresh food access
- Seed investment as part of a greater community revitalization mission
Ineligible Projects
The following types of projects and activities are not eligible for financing:
- Residential or transient living facilities (unless part of an eligible mixed-use project described in eligible projects section)
- Public facilities such as
- Community halls
- Fire stations
- Hospitals
- Colleges or universities
- Businesses such as:
- Adult bookstores
- Adult video shops
- Other adult entertainment facilities
- Gambling facilities
- Gun shops
- Liquor stores
- Cannabis businesses
- Massage parlors
- Pawn shops
- Tanning salons
- Tattoo parlors
Loan Terms
- Loan amounts up to $5 million
- Interest rate is based on an underwriting analysis
- Flexible loan terms up to 30 years, depending on use and loan amount
- 10% applicant cash contribution is required
- Personal guarantees are required
Application
Apply online through our Application Portal:
- New users: Create an account by selecting the Registration link in the upper left corner of the application portal login screen.
- Returning users: Log in with your existing account.
There is a $250 application fee when you apply.
Consultation
For an initial consultation to discuss whether Neighborhood BusinessWorks or another DHCD business financing program may be a good fit for your business, please complete our
Pre-Application Consultation Form and a member of our team will contact you shortly.
NBW Fees
- $250 application fee
- $250 closing fee
- 1% commitment fee
Program Documents
Program Contact: Business Lending Team
Email:
[email protected]
Phone:
301-429-7408
Pre-Application Consultation Form
