Hagerstown Revolving Loan Fund (HRLF) Program

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
  • Fa├žade 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.