NBW Loan to Lender Program
Designed for Community Development Financial Institutions (CDFIs) for relending to small businesses combined with the required private capital match (Targeted loan of up to $500,000). The loan focuses on businesses owned and operated by Socially and Economically Disadvantaged Individuals (SEDI), Very Small Businesses (VSB) and CDFI Investment Areas.
Eligibility
- CDFIs only
- Proof of private capital to match from a qualified private source
- For non-SEDI businesses and those with ≥10 employees, Goal of 4:1
- For SEDI businesses or those with <10 employees, targeted private capital match to SSBCI funds ratio of 2.3:1 (or 70-30)
- CDFIs must have 20% at risk
- Priority: SEDI businesses, and very small business (<10 employees)
Terms
- Loan Size based on capacity ($500,0000 - $15,000,000)
- Applications processed on a first come / first served basis
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NBW Venture Funds Program
The Venture Funds Program is dedicated to funding and growing the next generation of outstanding early-stage businesses in Maryland.
The program is designed to assist businesses with high potential job growth that have already raised equity from early-stage investors and are seeking new investors to support reaching the next equity raise. Most companies are positioned to scale and are in need of bridge financing to achieve milestones. Typical bridge rounds are >$2,000,000.
Eligibility
- Less than 500 employees
- Minimum required private capital match to SSBCI funds ratio 1:1
- Target matching private capital to SSBCI funds > 2:1
- Existing Paid-In-Capital >$2,000,000 or revenues > $1,000,000
- Priority is given to very small businesses (<10 employees) and SEDI owned and operated businesses
Terms
- SSBCI must be on at least on a pari passu basis with the private capital match
- SSBCI funds must cause and result in the private capital match
- Venture Debt rates with repayment in principal and interest or a convertible note
- Target SSBCI portion of venture debt: $500,000 to $2,500,000
- Aggregate Funding Round < $20,000,000
If interested, please email
[email protected]
Application
All applications must include the following:
- A current business plan supporting your bridge financing
- Identified source of the private capital match
- Historical financials, 3 years or less if business formed less than 3 years ago up to 3 years
- A capitalization table
- An existing term sheet from an a private capital match provider (investor), if available.
If you have any questions about the Venture Funds Program, contact:
Frank Dickson, Director of Strategic Initiatives
[email protected]
SSBCI Participating CDFIs
The Maryland SSBCI program provides loans to CDFIs to re-lend to small businesses owned and operated by SEDI Individuals and located in CDFI Investment Areas. These lenders are listed as a resource for eligible businesses. Please click on the links below to apply.
For More Information
For more information on eligible businesses and projects, review the FAQs on the
Resources page