Microenterprise Loan Program

The Maryland Microenterprise Loan Program expands opportunities for microenterprise development, creates new opportunities for small business development and sustains local economies in Maryland communities. The Microenterprise Loan Program is designed to provide entrepreneurs with flexible financing for microenterprise start-ups and expansions within designated Sustainable Communities and Priority Funding Areas throughout the State. The Maryland Department of Housing and Community Development has established partnerships with community-based microlenders as Intermediaries that originate and administer microenterprise loans.

Our local partners understand their local economy and can provide micro-entrepreneurs with easier access to training and technical assistance. This new public-private partnership will provide better access to capital for establishing and sustaining micro-businesses.

Intermediary Microloan Partners

Baltimore Community Lending (serving Baltimore City)
P: 410-727-8590 | W: https://bclending.org

Enterprise Development Group - Arlington, VA (Serving Anne Arundel, Baltimore, Charles, Frederick, Howard, Montgomery, Prince George's, St. Mary's counties and Baltimore City)
P: 703-685-0510 | W: https://www.ecdcus.org

Latino Economic Development Center - Washington, DC (Serving Anne Arundel, Baltimore, Charles, Frederick, Harford, Howard, Montgomery, Prince George's counties and Baltimore City)
P: 202-540-7412 | W: https://www.ledcmetro.org

Maryland Capital Enterprises, Inc. – Salisbury MD (Serving Anne Arundel, Baltimore, Caroline, Dorchester, Kent, Queen Anne, Somerset, Talbot, Wicomico, Worcester Counties and Baltimore City)
P: 410-546-1900 | W: www.marylandcapital.org

Prince George’s Financial Service Corporation – Largo MD
(Serving Prince George’s County)
P: 301-883-6900 | W: fscfirst.net

Please contact the intermediary directly to receive an application.

Eligible Businesses

Retail businesses
Manufacturing businesses
Goods and Services related businesses
Must be located in a designated Sustainable Community area
Small business cannot exceed $500,000 in annual revenue
Not more than 5 employees at time of application

Eligible Uses of Funds

Working capital
Marketing/planning/feasibility studies
Real estate acquisition down payment
Minor renovations
Minor leasehold improvements
Machinery and equipment
Certain other costs associated with opening or expanding a small business

Ineligible Uses of Funds

No residential or transient living businesses, multifamily or single-family housing developments, nursing homes, assisted living facilities, crisis care centers, group homes, transitional housing, and homeless shelters
No facilities such as community halls, fire stations, hospitals, colleges, or universities
No adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, massage parlors, pawn shops, tanning salons, or tattoo parlors
No home-based businesses

Microloan Terms

Microenterprise Loan Program portion of loan cannot exceed $50,000
Additional funds may be added to project by Intermediary
Rates up to 12%
Loan term cannot exceed 5 years
Collateral is required and may include, but is not limited to personal guarantees, liens on business assets and pledges of accounts
No prepayment penalties