| Maryland Capital Access Program (MCAP) -
Frequently Asked Questions by Borrowers
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| Q: Who is eligible to receive an MCAP
loan? |
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A: Most Maryland small businesses, including nonprofit organizations, are
eligible. Businesses must be located in Maryland's
"Priority Funding Areas" (PFAs). Nearly all populated areas of the
State are recognized PFAs.
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| Q: Why would I apply? |
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A: MCAP improves access to capital for small businesses. Typical loans
under this program would be those that fall slightly outside the lender's
normal credit guidelines.
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| Q: What kind of loans qualify? |
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A: Virtually any type of commercial loan made by participating lenders
qualify, including revolving lines of credit and term loans. However, some
restrictions do apply, consult the MCAP
program fact sheet for details.
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| Q: Do I apply to the State? |
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A: No. The relationship is between the participating lender and
MCAP.
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| Q: Where do I apply? |
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A: At your local participating lender.
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| Q: What are the minimum and maximum loan
amounts? |
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A: Enrolled loan amounts may range from $10,000 to $1,000,000.
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| Q: How long is the MCAP application
process? |
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A: After a participating lender underwrites an eligible loan, the process
usually takes less than 10 business days.
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| Q: What are the costs associated with
MCAP? |
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A: The lender determines the amount of contribution (fee), within a range
established by MCAP. An example would be: 1.5 percent each from the lender and
borrower, or a total of 3 percent, and a 3 percent match from MCAP, for a total
of 6 percent of the original loan amount. These are nonrefundable contributions
(fees) to establish the loan loss reserve fund. In the event of default on an
enrolled loan, the lender can utilize funds in this reserve to offset its loss.
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| Q: What about interest rates, points and
fees other than the contributions (fees) to the loan loss reserve account, for
the borrower? |
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A: These costs are negotiated between the lender and the borrower. MCAP
does not participate in the lender's underwriting decision. MCAP does not
require any other costs to the borrower.
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| For Information About the Program: |
Raymond Lanza-Weil
Director, Neighborhood BusinessWorks
Maryland Department of Housing and Community Development
Maryland Capital Access Program
1201 West Pratt Street, Suite D
Baltimore, Maryland 21223
Phone: 410-209-5808
Fax: 410-685-8270
lanza-weil@mdhousing.org
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