Hagerstown Revolving Loan Fund (HRLF) Program
Staff contact: Margi Joe, MJoe@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:
- Growth and Expansion
- Code Compliance
- Façade Enhancement
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
Include but are not limited to:
- Management Fees
- Financing Costs
- Franchise Fees
- Debt Repayment or Debt Consolidation
- Moving Costs
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.