Anne Arundel Economic Development Corporation
Economic Development Revenue Bonds The ABL Fund is a viable non-bank alternative source of financing ready and Anne Arundel County encourages private- able to assist small businesses in Anne sector financing for economic development Arundel County. The ABL Fund’s partners projects through the issuance of private are: the U.S. Small Business Administration, The Arundel Business activity revenue bonds. Tax-exempt bonds the Maryland Industrial Development Loan Fund Financing Authority (MIDFA), The Maryland provide access to long term capital markets an SBA Lender for fixed-asset financing at tax-exempt Small Business Development Financing rates. Federal tax law limits eligibility to Authority (MSBDFA) and 19 banks Guidelines for a Small Business Loan • Bank of America • Bay Bank • Branch Banking & Trust (BB&T) • Essex Bank • First Mariner Bank • First National Bank • M&T Bank • Old Line Bank • PNC Bank manufacturing facilities, 501(c)(3) non- • Howard Bank profit organizations, and certain energy • Revere Bank projects. Additional limitations apply, • SECU depending on the specific transaction. • Sandy Spring Bank • Severn Savings Bank Most importantly, you have a • SunTrust Bank resource at AAEDC. Contact us • TD Bank with questions and for details. • The Bank of Glen Burnie • The Columbia Bank The Anne Arundel Economic Development Corporation mission is to serve business needs and to increase Anne Arundel County’s economic base through job growth and investment. For more information about the AAEDC Business Financing Services, please visit www.aaedc.org
Updated: January 18, 2017 Stephen Primosch Vice President Financial Services 2660 Riva Road, Suite 200, Annapolis, MD 21401 t (410) 222 7410 • f (410) 222 7415 www.aaedc.org M:\Desktop Publishing\Projects\AAEDC Brochures\Feb 07 Brochure\ABL AAEDC Business Financing Brochure www.aaedc.org Guidelines Lending Requirements Loan Packaging
The Anne Arundel Economic Development Typical maximum loan terms are: A Loan application package Corporation (AAEDC) provides financial should include: • SBA 7A guarantee: $300,000 assistance to new and expanding businesses • Business financial statements • MIDFA & MSBDFA operating in Anne Arundel County. This and financial projections. guarantee: $300,000 entails: (1) technical assistance in identifying • Personal financial statements • SBA 504 loans $540,000 and tax returns for each owner public financial-assistance programs SBA 504 loans are made in conjunction that best fit a given company’s financial with a 40% loan issued by an SBA (20% or greater ownership). need; and (2) direct assistance through Certified Development Company • Completed the ABL Fund application the AAEDC’s loan programs, including the Interest Rate: • Business plan required for new Arundel Business Loan (ABL) Fund. • Interest Rates generally vary monthly businesses and are tied to the Wall Street Journal Applicants Prime rate + 2.25% - 4.75% Ability To Repay: Applicants are proprietorships, partnerships, • Financial information corporations, or limited liability corporations should demonstrate operating in Anne Arundel County, Maryland. sufficient cash flow to repay the loan Business Eligibility Collateral: Eligibility involves: Loans are secured with liens 1. Businesses operating in Anne on all available collateral. Arundel County, Maryland, or Typically, collateral includes: • Security interest in all 2. Businesses relocating to Anne business assets, including Arundel County, Maryland assets purchased with 3. Additional regulations apply the loan proceeds for loans involving an SBA or • Indemnity Deed of State of Maryland guarantee. Trust on the owners’ personal residence. Use of Proceeds • A collateral assignment Loan proceeds may be used for any of life insurance on legitimate business purpose, to include: the owners for the loan amount
• Working capital (term of 1 - 7 years) Guarantees Settlement Process • Equipment and furniture (term of 3 - 7 years) • Personal guarantees of owners with a Loans are settled as quickly as possible after • Leasehold improvement 20% or greater ownership interest all approvals are secured. Closing costs, (term of 3 - 7 years) including fees for AAEDC’s legal counsel, • Real estate (terms of 5 - 20 years) are the responsibility of the borrower. • Lines of credit (term of 1 year with an option to renew) Meeting business needs today