The Frederick County Office of Economic Development, with support from County Executive Jan Gardner, is pleased to introduce a Small Business Loan Guarantee Program (SBLG) for existing and aspiring small businesses in Frederick County. The initial funding of this program will be provided by the existing funds remaining from the Frederick County Revolving Loan Fund, which stopped issuing new loans in 2011. “This is another way of showing that Frederick County means business,” County Executive Gardner said Thursday. “We support our small businesses and want to give them the help they need to succeed.”
Frederick County Office of Economic Development Director Helen Propheter added, “The end goal is to create more jobs in Frederick County, support jobs that pay family supporting wages and provide more local job opportunities. This program is another tool in our toolbox that helps us achieve these results.”
The purpose of the SBLG is to provide financing assistance for growth-related expansion projects for existing businesses and for aspiring entrepreneurs, the loan guarantee can be used for real estate, refinancing secured debt, machinery & equipment and working capital. The SBLG provides up to an 80% loan guarantee with a commitment capped at $50,000. There is no loan amount maximum and the terms and interest rate are to be determined by the lender that the business is working with.
In order to maximize resources, the business must be located in Frederick County or agree to locate within Frederick County prior to settlement and must be a start-up or early stage for-profit company with 100 or fewer employees. Borrowers must provide at least 5% equity and preference is given to Frederick County’s targeted industries or high growth industries.
The program will be administered by the Frederick County Office of Economic Development and managed by a volunteer-driven Loan Guarantee Committee . Lenders will serve as the primary contact for prospective Frederick County Small Business Loan Guarantee clients. The SBLG requires that an applicant be approved for conventional bank financing contingent upon a loan guarantee before applying for the SBLG. For more information, including administrative guidelines and a Small Business Loan Guarantee Application, click here or call the Frederick County Office of Economic Development at 301-600-1058.
