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SMALL BUSINESS FINANCING Division of Neighborhood Revitalization

Martin O'MalleyGOVERNOR

Anthony G. BrownLT. GOVERNOR Raymond A. SkinnerSECRETARY Clarence J. SnuggsDEPUTY SECRETARY1Business Lending ProgramsNeighborhood BusinessWorks Loan ProgramMicroenterprise Loan ProgramLinked DepositMaryland Capital Access Program

2NEIGHBORHOOD REVITALIZATION

Linked Deposit ProgramProgram is for Certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banksBusinesses certified by the Maryland Department of Transportation (MDOT) as a Minority Business Enterprise (MBE) are eligible2% interest rate reduction on loans from enrolled financial institutionsFirst National Bank, The Columbia Bank, Industrial BankLoans are underwritten and approved by the financial institutionMaryland State Treasurers office deposits matching funds in a CD at the lending institutionLoans may not exceed $1 millionLoan terms can not exceed 10 yearsPoints charged by lender can not exceed 1% Project or activity must be in Maryland Maryland Capital Access Program (MCAP)Program allows lenders to make loans that fall slightly outside of their normal credit guidelines. A loss reserve account is created to strengthen applications with weak credit or collateralLender, Borrower, and DHCD creates a loss reserve account at the lending institution for 6% of the loan amount. The lender contributes 1.5%, the borrower contributes 1.5%, and DHCD puts in 3%Program lenders BB&T and PNCThe borrower applies directly to one of the lending institutionsThe loan is underwritten and funded by the lending institution Eligible loan amounts are from $10,000 - $1 million Any type of commercial loan qualifies, lines of credit and term loansNeighborhood Business Works Loan ProgramProgram provides gap financing to new or expanding small businesses and nonprofit organizations in Sustainable Communities throughout the StateLoans from $10,000 - $500,000 No more than 50% of total project costLoan terms from 5 15 yearsInterest rates from 3% - 5%Minimum 5% of total project cash contribution from applicant 75% collateral coverage and personal guarantees requiredPrimary lender requiredThis loan is underwritten and funded by the StateMicro Lending Loan ProgramProgram provides financing to new or existing small businesses and nonprofit organizations in Sustainable Communities throughout the StateLoans from $5,000 - $35,000 Loan terms up to 5 yearsInterest rates competitivecollateral and personal guarantees requiredThis loan is underwritten and funded by the State

Eligible ApplicantsMaryland-based small businesses (small business as defined by the U.S. Small Business Administration) Nonprofit organizations whose activities contribute to a broader revitalization effort and whose projects are intended to promote investment in commercial districts or town centersCommercial Property Owners Commercial Property TenantsDevelopers Note: Local governments are not eligible applicants.NEIGHBORHOOD BUSINESSWORKSEligible Projects/Use of FundsNew construction or rehabilitation Leasehold improvementsReal estate acquisition Manufacturing Retail/FranchiseMarket/Planning/Feasibility studiesMachinery and equipmentFurniture, fixtures and equipmentWorking capital

5Neighborhood BusinessWorksProgram provides gap financing to new or expanding small businesses and nonprofit organizations in designated Sustainable Communities throughout the StateEligible uses: Commercial building rehab or leasehold improvement, equipment & furniture, inventory and working capitalLoans from $10,000 - $500,000 Financing up to 50% of the total project costCommitment for other 50% of project must be committedLoan terms from 5 15 years - Interest rates from 3% - 5%Minimum 5% of total project as cash contribution from applicant Minimum 75% collateral coverage and personal guarantees requiredThis loan is underwritten and funded by the StateSustainable Communities

Microenterprise Loan ProgramProgram provides financing to new or existing small businesses and nonprofit organizations in designated Sustainable Communities throughout the State Eligible uses: Working capital or other approved business expenseLoans up to $35,000Loan term up to 5 yearsRates are from 5% - 7%Loan underwritten by the State or Intermediary Microlending Partners:Maryland Capital EnterprisesEconomic Development GroupPrince Georges Financial ServicesLinked DepositProgram provides more affordable capital to MDOT certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banks for businesses in MarylandEligible uses: business restructuring or and other business expenses deemed eligible by participating bank and program guidelinesBorrowers receive a reduced rate that is 2% below marketParticipating banks: First National Bank, The Columbia Bank, Industrial BankLoans are underwritten and approved by the financial institutionMaryland State Treasurers office deposits matching funds in the amount of the loan at the lending institutionLoans may not exceed $1 million or a term of 10 yearsPoints charged by lender can not exceed 1% Maryland Capital Access ProgramProgram allows lenders to make loans that fall slightly outside of their normal credit guidelines for businesses located in Priority Funding Areas throughout the State. Eligible uses: Any commercial term loan deemed qualified by lenderA loss reserve account is created to strengthen applications with weak credit or collateralLender, Borrower, and DHCD creates a loss reserve account at the lending institution for 6% of the loan amount. The lender contributes 1.5%, the borrower contributes 1.5%, and DHCD puts in 3%Program lenders BB&T and PNCThe borrower applies directly to one of the lending institutionsThe loan is underwritten and funded by the lending institution Eligible loan amounts are from $10,000 - $1 million Neighborhood BusinessWorks/MicroenterpriseProject: Potomac Gourmet PantryLoan Amount: $300,000Location: Prince Georges CountyJobs Created: 25Loans Closed: October 201022Project: Babe (A Boutique)Loan Amount: $35,000Location: Baltimore CityJobs Sustained/Created: 2Loans Closed: June 2011

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Linked Deposit/Maryland Capital AccessBorrower: Amtrac Railroad Contractors of Maryland, Inc.Loan Amount: $431,660Location: Washington CountyJobs Sustained: 3Loans Closed: May 200922Borrower: Ed Paton Insurance

Loan Amount: $75,000

Enrolled by: BB&T

Location: Prince Georges

Jobs Retained: 3

Loan Closed: June 2010

131313Neighborhood BusinessWorks Projects

Arrow Bicycle, Hyattsville, MDJoie De Vivre, Cambridge, MDBig Bad Woof, Hyattsville, MDRoscoes Neapolitan Pizzeria, Takoma Park, MDLimerick PubWheatonBeforeAfter

John L Williams Funeral Directors Baltimore City

Before After

Pemberton Caf SalisburyBefore After

Joie de Vive CambridgeBeforeAfter

Neighborhood BusinessWorksSince 1996, Neighborhood BusinessWorks has:Loaned more than $62 million to 300+ businesses, creating 6,170 jobs across Maryland and leveraging $206 million in private investmentLoaned nearly $16 million to 88 businesses in historic Main Street Maryland communities Thank YouFor More Information Contact:

Michael Haloskey, Director Business LendingPhone: 410-514-7237Email: Haloskey@mdhousing.org

Cheivelle Hill, Senior Loan UnderwriterPhone: 410-514-7245Email: Hillc@mdhousing.org

20Sources & Uses: Itemize how you plan to fund this projectBreakdown of total project costs by funding source:

(A)Use of Funds(B)Total Costs(C)NBWRequest(D)OtherLender(s)(E)Applicants Contribution

Building/Site Acquisition$ $ $` $

Building Construction/Expansion/Improvements$ $ $` $

Pre-Development Costs$ $ $ $

Furniture, Fixtures, Equipment$ $ $ $

Inventory$ $ $ $

Start-up Costs$ $ $ $

Working Capital$ $ $ $

Other (explain)$ $ $ $

TOTAL PROJECT:

$ $ *$ $ **

*Not to exceed 50% of total project costs.**Minimum of 5% of total project costs.