New Micro Loan Fund Aims to Assist Small Business in Anne Arundel County
“The Arundel Micro Loan Fund is just another way we can empower our local entrepreneurs,” said Mr. Rothstein. “This fund specifically benefits retail, manufacturing and goods and services related businesses, and it can be impactful in stimulating job growth and economic expansion in many communities around Anne Arundel County.”
Under the program, qualified enterprises must be small businesses with no more than five employees at the time of application and annual revenues of $500,000 or less. The business must be located in a designated Sustainable Community area such as portions of Annapolis, Brooklyn Park, Glen Burnie and Odenton/Severn.
Microloans range from $5,000 to $35,000 at a fixed rate of 6.50% with a one percent loan fee and a closing fee of $250. There are no prepayment penalties and the loan term cannot exceed five years. Additional funds may be added to the project by other AAEDC programs such as the Arundel Community Reinvestment Fund (ACR), the VOLT Fund and the Arundel Business Loan Fund (ABL).
Eligible uses for the microloan include:
- Working capital
- Real estate acquisition down payment
- Leasehold improvements
- Equipment purchase
- Business start-up costs
In early October, AAEDC was awarded $500,000 by the Maryland Department of Housing and Community Development’s (DHCD) Microenterprise Loan Program to serve as an intermediary that will originate and administer such loans. The program is designed to provide entrepreneurs with flexible financing for microenterprise start-ups and expansions within designated Sustainable Communities throughout the state.
Sustainable Communities is a place-based community revitalization designation offering a comprehensive package of resources that aim to increase economic, transportation and housing choices, and improve environmental quality and health outcomes. The designation encourages interagency and cross-governmental collaboration, aligning State and local resources to address the needs of Maryland communities. More information on the Maryland Department of Housing and Community Development and the Sustainable Communities program is available on www.mdhousing.org .
About Anne Arundel Economic Development Corporation
The mission of the Anne Arundel Economic Development Corporation is to support business and serve as a catalyst for business growth in Anne Arundel County thereby increasing job opportunities, expanding the tax base and improving quality of life.
Marketing and Outreach Manager
Anne Arundel Economic Development Corporation
2660 Riva Road, Suite 200
Annapolis, MD 21401
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