Anne ArundelEconomic Development Corporation

www.aaedc.org

Economic Development Revenue Bonds

Anne Arundel County encourages private-sector financing for economic development projects through the issuance of private activity revenue bonds. Tax-exempt bonds provide access to long term capital markets for fixed-asset financing at tax-exempt rates. Federal tax law limits eligibility to

manufacturing facilities, 501(c)(3) non-profit organizations, and certain energy projects. Additional limitations apply, depending on the specific transaction.

Most importantly, you have a resource at AAEDC. Contact us with questions and for details.

Updated: January 18, 2017

The Arundel Business Loan Fundan SBA LenderGuidelines for a Small Business Loan

The ABL Fund is a viable non-bank alternative source of financing ready and able to assist small businesses in Anne Arundel County. The ABL Fund’s partners are: the U.S. Small Business Administration, the Maryland Industrial Development Financing Authority (MIDFA), The Maryland Small Business Development Financing Authority (MSBDFA) and 19 banks

• 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• Howard Bank• Revere Bank• SECU• Sandy Spring Bank• Severn Savings Bank• SunTrust Bank• TD Bank• 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

Stephen PrimoschVice President Financial Services

2660 Riva Road, Suite 200, Annapolis, MD 21401t (410) 222 7410 • f (410) 222 7415

www.aaedc.orgM:\Desktop Publishing\Projects\AAEDC Brochures\Feb 07 Brochure\ABL AAEDC Business Financing Brochure

Guidelines

The Anne Arundel Economic Development Corporation (AAEDC) provides financial assistance to new and expanding businesses operating in Anne Arundel County. This entails: (1) technical assistance in identifying public financial-assistance programs that best fit a given company’s financial need; and (2) direct assistance through the AAEDC’s loan programs, including the Arundel Business Loan (ABL) Fund.

Applicants

Applicants are proprietorships, partnerships, corporations, or limited liability corporations operating in Anne Arundel County, Maryland.

Business Eligibility

Eligibility involves:

1. Businesses operating in Anne Arundel County, Maryland, or

2. Businesses relocating to Anne Arundel County, Maryland

3. Additional regulations apply for loans involving an SBA or State of Maryland guarantee.

Use of Proceeds

Loan proceeds may be used for any legitimate business purpose, to include:

• Working capital (term of 1 - 7 years)• Equipment and furniture

(term of 3 - 7 years)• Leasehold improvement

(term of 3 - 7 years)• Real estate (terms of 5 - 20 years)• Lines of credit (term of 1 year

with an option to renew)

Lending Requirements

Typical maximum loan terms are:

• SBA 7A guarantee: $300,000 • MIDFA & MSBDFA

guarantee: $300,000• SBA 504 loans $540,000

SBA 504 loans are made in conjunction with a 40% loan issued by an SBA Certified Development Company

Interest Rate:• Interest Rates generally vary monthly

and are tied to the Wall Street Journal Prime rate + 2.25% - 4.75%

Ability To Repay:

• Financial information should demonstrate sufficient cash flow to repay the loan

Collateral:

Loans are secured with liens on all available collateral. Typically, collateral includes:

• Security interest in all business assets, including assets purchased with the loan proceeds

• Indemnity Deed of Trust on the owners’ personal residence.

• A collateral assignment of life insurance on the owners for the loan amount

Guarantees

• Personal guarantees of owners with a 20% or greater ownership interest

Loan Packaging

A Loan application package should include:

• Business financial statements and financial projections.

• Personal financial statements and tax returns for each owner (20% or greater ownership).

• Completed the ABL Fund application• Business plan required for new

businesses

Settlement Process

Loans are settled as quickly as possible after all approvals are secured. Closing costs, including fees for AAEDC’s legal counsel, are the responsibility of the borrower.

Meeting business needs today