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Hagerstown Revolving Loan Fund (HRLF) Program
Staff contacts: Ashley Newcomer, anewcomer@hagerstownmd.org
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.
Loan funds may be used for activities, including but not limited to:
May include the following:
Include but are not limited to:
Funds may not be used for:
Click on the following link for the Program Guidelines and Application.
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.
Complete program guidelines apply.
Click on the following link for the Program Guidelines and Application.