Staff contacts: Ashley Newcomer, anewcomer@hagerstownmd.org

Eligible Applicants:

Small business or developer organized as a proprietorship, partnership, limited liability company or a corporation whose business sales are less than five million dollars ($5,000,000) annually for each of the last two (2) years.

Eligible Activities:

Loan funds may be used for activities, including but not limited to:

• Growth and Expansion
• Rehabilitation
• Code Compliance
• Façade Enhancement

Eligible Costs:

May include the following:

• Land improvements, including but not limited to: grading, new streets or street improvements, parking lots, utilities, and landscaping.
• Purchase or renovation of building.
• Purchase machinery or equipment defined to have a useful life of at least five (5) years.
• Building construction.
• Leasehold improvements provided the lease is equal to or greater than the term of the loan and the City secures a lien on the land or building, and improvements.
• Micro-enterprise activities defined as a commercial enterprise that has five (5) or fewer employees, one or more of whom owns the enterprise.
• Working Capital

Ineligible Costs:

Include but are not limited to:

• Management Fees
• Financing Costs
• Franchise Fees
• Debt Repayment or Debt Consolidation
• Moving Costs
• Refinancing

Ineligible Activities:

Funds may not be used for:

• Non-profit Institutions
• Gambling Organizations
• Lending or Investment Organizations
• Land Speculation
• Any activity deemed illegal by federal, state or local law or ordinance

Terms and Conditions:

• Maximum loan amount is $200,000 or 80% of total project cost, whichever is less.
• Maximum loan amount for working capital is $30,000.
• Minimum loan amount is $5,000.00.
• Additionally, micro-enterprise loans are available up to 5,000.
• The interest rate shall be a fixed-rate established at PRIME plus 1%, but shall not be less than 3%.
• Term may not exceed 7 years. Term may not exceed 5 years for working capital loans.
• Minimum of 20% cash equity investment of total project costs. For new restaurants open 3 years or less, minimum of 40% cash equity investment of total project costs.
• Repayment of loan shall begin within one month of completion of construction or taking possession of machinery or equipment purchased.

Please be advised, a credit check is required along with a non-refundable application fee based on the requested loan amount.

Complete program guidelines apply.

Click on the following link for the Program Guidelines and Application.