Hampden’s signature restaurant on the “Avenue”
received
a Neighborhood Business Works Loan for Expansion.
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The Neighborhood BusinessWorks loan program provides gap
financing, i.e. subordinate financing, to new or expanding small businesses and
nonprofit organizations in
Sustainable Communities throughout the State.
WHO CAN APPLY
Maryland-based small businesses
(as defined by the U.S. Small Business Administration), local
development corporations and nonprofit organizations whose activities
contribute to a broader revitalization effort, and whose projects are intended
to promote investment in commercial districts or town centers. Local
governments are not eligible applicants.
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ELIGIBLE PROJECTS & USES OF
FUNDS |
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Mixed-use projects combining residential and commercial uses in the same
building
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New construction or rehabilitation
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Machinery and equipment
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Certain other costs associated with opening or expanding a small business
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Real estate acquisition
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Manufacturing
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Service providers
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Retail
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Note: A Minority Business Enterprise Plan is required for those
projects where Neighborhood BusinessWorks funds will exceed $250,000 for
construction or rehabilitation.
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| PROJECT
CRITERIA |
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Project must be located in a Sustainable Community
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Project viability and potential impact on the neighborhood
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First floor business or retail space use that generates street level activity
in mixed use projects
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Improvements to a vacant or under-utilized building or site
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Readiness to proceed
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Cash flow and collateral
Priority is given to projects that strengthen neighborhood commercial districts
and are part of a greater revitalization strategy. The following types of
projects and activities will not be considered for financing:
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Residential or transient living facilities (other than mixed-use projects
described in eligible projects section)
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Facilities such as community halls, fire stations, hospitals, colleges or
universities
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Adult bookstores, adult video shops, other adult entertainment facilities,
gambling facilities, gun shops, liquor stores, massage parlors, pawn shops,
tanning salons, or tattoo parlors
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Cumberland Town Center received a Neighborhood
Business Works Loan for Acquisition and renovation of two adjacent vacant
buildings for mixed use.
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LOAN TERMS |
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Loan amounts up to $500,000 or 50% of the total project costs, whichever is
less
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Interest rate is based on an underwriting analysis
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Target loan term is five to 15 years, depending on use and loan amount
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Minimum five percent applicant cash contribution is required (based on total new
project cost)
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Personal guarantees and collateral are required
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No prepayment penalties
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APPLICATION
Applicants must complete a Neighborhood BusinessWorks loan application package.
Upon loan approval an applicant will receive a commitment letter from the
Maryland Department of Housing and Community Development. Loan approval
requires that applicants meet underwriting guidelines.
Applicants must have executed the necessary legal documents prior to
disbursement of the loan proceeds.
Neighborhood BusinessWorks Loan Application Package
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FOR MORE
INFORMATION
Michael Haloskey
Director, Business Lending Programs
Maryland Department of Housing and Community Development
100 Community Place
Crownsville, MD 21032
Phone: 410-514-7237
Haloskey@mdhousing.org
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