Thursday, January 28, 2016

Gap Financing Available for Businesses in One of County's Four Sustainable Communities

The State of Maryland developed a program in 2010 with the Sustainable Communities Act, where public and private investments and partnerships help develop healthy economies with growth practices that conserve resources and appreciate historical and cultural resources. Since that time, the State has designated four Sustainable Communities in Frederick County: City of Brunswick, Town of Emmitsburg, Town of Middletown and the Town of Thurmont.

The State of Maryland's Neighborhood BusinessWork's loan progr​am provi​des gap financing, i.e. subordinate financing, to new or expanding small businesses and nonprofit organizations in Sustainable Communities throughout the State.

  • Mixed-use projects combining residential and ​commercial uses in the same ​building
  • New construction or rehabilitation​​
  • Machinery and equipment
  • Certain other costs associated with opening or expanding a small business
  • Real estate acquisition
  • Manufacturing
  • Service providers
  • Retail
  • Project must be located in a Sustainable Community
  • Project viability and potential impact on the neighborhood
  • First floor business or retail space use that generates street level activity in mixed use projects
  • Improvements to a vacant or under-utilized building or site
  • Readiness to proceed
  • 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:
  • Residential or transient living facilities (other than mixed-use projects described in eligible projects section)
  • Facilities such as community halls, fire stations, hospitals, colleges or universities
  • Adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, massage parlors, pawn shops, tanning salons, or tattoo parlors
  • Loan amounts up to $500,000 or 50% of the total project costs, whichever is less
  • Interest rate is based on an underwriting analysis
  • Target loan term is five to 15 years, depending on use and loan amount
  • Minimum five percent applicant cash contribution is required (based on total new project cost)
  • Personal guarantees and collateral are required
  • No prepayment penalties
To apply, please visit