Maryland Business Recovery Loan Program Fact Sheet

Transcription

1 Maryland Department of Housing & Community Development Division of Neighborhood Revitalization Lawrence J. Hogan Jr Governor Boyd K. Rutherford Lt. Governor Kenneth C. Holt Secretary Maryland Business Recovery Loan Program Fact Sheet Purpose of the Program: The Maryland Business Recovery Loan Program is an emergency program to assist small businesses affected by civil unrest in the spring of Eligible applicants must apply by August 1, Eligible Applicants: Maryland-based small businesses and non-profit organizations that can provide evidence of physical or economic damage related to the unrest in Baltimore. Amount of Financing Available: Up to $35,000 for Micro-Loans and typically up to $500,000 for larger loans. However the upper limit may change subject to available funds and demonstrated need. Eligible Businesses: (in good standing with the State of Maryland) Retail businesses Manufacturing businesses Service-related businesses Mixed-use projects Eligible Uses of Funds: Demolition and new infill construction Rehabilitation Repair and replacement of furniture, fixtures and equipment New machinery and equipment Inventory replacement Other costs associated with recovery of the business, including working capital Loan terms: For loan amounts at or below $35,000: interest rate of zero percent (0%) and repayment period of one to five years. For loans above $35,000: interest rate of four percent (4%) and repayment period of up to fifteen years. Personal guarantees and lien on business assets required No prepayment penalties Forgivable loan option loan forgiveness, up to $5,000 or 50% of the loan amount, whichever is less, may be available if other benchmarks are met. Only uncompensated losses are eligible; insurance or other private or federal loan or grant proceeds not required to be applied against outstanding mortgages must be applied to losses and repairs prior to State funds. DHCD may require borrowers to obtain and maintain appropriate insurance. The Maryland Department of Housing and Community Development (DHCD) pledges to foster the letter and spirit of the law for achieving equal housing opportunity in Maryland. 1

2 Restrictions: The following types of projects and activities will not be considered for MBR financing: Residential or transient living businesses e.g., multifamily or single-family housing developments, nursing homes, assisted living facilities, crisis care centers, group homes, transitional housing, and homeless shelters Public facilities such as community halls, fire stations, hospitals, colleges, or universities Adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, massage parlors, pawn shops, tanning salons, or tattoo parlors Home-based businesses Application: A complete application consisting of the items on the Required Documentation Checklist must be submitted before a business application can be fully processed. If the application for funds is approved, additional documentation will be necessary to close the loan. For Additional Information Please contact: Colleen Cord-Malone Program Coordinator, Business Lending Programs Phone: [email protected] Maryland Department of Housing and Community Development Neighborhood BusinessWorks Program 7800 Harkins Road Lanham, Maryland Phone: or Toll Free: Fax: MD Relay for the Deaf: Employment Opportunities As part of Maryland s continuing efforts to provide successful Welfare-to-Work opportunities, the Department of Housing and Community Development encourages Microenterprise Loan Program applicants to make jobs available to Temporary Cash Assistance recipients. For further information on how to reach these resources, please contact the Department of Human Resources, Office of Work Opportunities at or the Department of Labor, Licensing and Regulation, Office of Employment Training at or the Maryland Job Service at Maryland also maintains a job bank on the internet at 2

3 DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT 7800 Harkins Road Lanham, MD or toll free FAX (Please Print Clearly or Type) Applicant: Address: Address (continued): Telephone No. (Home): Social Security No.: Address: Cell: Legal Business Entity Name: Business Name, if different from Entity Name Address of Business: Address (continued): Federal I.D. No.: Business Insurance Company: Contact/Agent Name: Contact/Agent Tel. No.: Policy Number: Loan Amount Requested: 3

4 Sources & Uses: Itemize how you plan to fund this project (A) Use of Funds (B) Total Costs Breakdown of total project costs by funding source: (C) NBR Loan Request (D) Other Funds) 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. Available Collateral: (E) Applicant s Contribution Please identify sources of collateral that may secure the loan: Value of collateral: Value of collateral based on (circle one): Appraisal Estimate Collateral Deeded to or owned by: Please provide a brief explanation of damages incurred: Please provide a brief plan for the use of funds should funding be approved: 4

5 All Applicants need to provide the following information: Current number of employees : Are lawsuits pending against you or your company? If yes, please explain on a separate sheet of paper. Have you or your business declared bankruptcy? If yes, please explain on a separate sheet of paper. Do you have any outstanding liabilities with the State of Maryland? (e.g., income taxes, sales taxes, payroll withholding taxes, unemployment taxes, or other penalties and fines) If so, please explain on a separate sheet of paper. 5

6 The undersigned authorizes the Department of Housing and Community Development (the Department ) to make such inquiries as necessary, including, but not limited to, credit inquiries in order to verify the accuracy of the statements made by the applicant and to determine the creditworthiness of the applicant. In accordance with Executive Order , the Department advises you that certain personal information is necessary to determine your eligibility for financial assistance. Availability of this information for public inspection is governed by Maryland s Access to Public Records Act, State Government Article, Section et seq. of the Annotated Code of Maryland (the Act ). This information will be disclosed to appropriate staff of the Department or to public officials for purposes directly connected with administration of this financial assistance program for which its use is intended. Such information may be shared with State, federal or local government agencies, which have a financial role in the project. You have the right to inspect, amend, or correct personal records in accordance with the Act. The Department intends to make available to the public certain information regarding projects recommended for reservation of funds by the Neighborhood Business Development Program/Microenterprise Loan Program. The information available to the public will include the borrower s name; the name, location, and description of the project; and the amount of financial assistance. This information may be confidential under the Act. If you consider this information confidential and do not want it made available to the public, please indicate that in writing and attach the same to this application. The Department desires to disclose information about your project to the Maryland General Assembly or other State officials or their staff, local government officials or their staff, other lenders and funding sources, and small business technical advisors. Such information may include your name; photo of the project and/or borrower; the name, location, and description of your project; the date and amount of financial assistance awarded by the Department; the terms of your financial assistance, including interest rate, repayment obligation, use of funds, and security interest taken; and the sources, amounts, and terms of other funding used to complete your project, including your capital contribution. This information may be confidential under the Act. If you do not want this information made available to the above-referenced parties, you must attach to this application your written objection. You agree that not attaching an objection constitutes your consent to the information being made available to the abovereferenced parties and a waiver of any rights you may have regarding this information under the Act. I have read and understand the above paragraph. Applicant s Initials: Anyone who knowingly makes, or causes to be made, any false statement or report relative to this financial assistance application for the purposes of influencing the action of the Department on such application shall be subject to criminal prosecution, a fine of up to $50,000, and/or imprisonment of up to five years. The undersigned hereby certifies that the development proposed in this application can be accomplished in accordance with the development budget set forth herein and further certifies that the information set herein and in any attachments in support hereof is true, correct, and complete to the best of his/her knowledge and belief. Authorized Signature Type Name and Title Date 6

7 Personal Financial Statement Please list all assets (Type and Amount) for each proprietor: Type: Amount: Please list all liabilities (Type and Amount) for each proprietor: Type: Amount: 7

8 VOLUNTARY DEMOGRAPHIC DATA This information will have no bearing on the loan process. Its intent is to provide a snapshot of loan portfolio demographics. BORROWER: I do not wish to furnish this information (Initials) Ethnicity: Hispanic or Latino Not Hispanic or Latino ( ) White ( ) American Indian/Alaskan Native & White ( ) Black / African American ( ) Asian & White ( ) Asian ( ) Black/African American & White ( ) American Indian/Alaskan Native ( ) American Indian/Alaskan Native & Black/African American ( ) Native Hawaiian/Other Pacific Islander ( ) Other Multi Racial ( ) Male ( ) Female CO-BORROWER: I do not wish to furnish this information (Initials) Ethnicity: Hispanic or Latino Not Hispanic or Latino ( ) White ( ) American Indian/Alaskan Native & White ( ) Black / African American ( ) Asian & White ( ) Asian ( ) Black/African American & White ( ) American Indian/Alaskan Native ( ) American Indian/Alaskan Native & Black/African American ( ) Native Hawaiian/Other Pacific Islander ( ) Other Multi Racial ( ) Male ( ) Female 8

9 MARYLAND BUSINESS RECOVERY LOAN PROGRAM This documentation is needed for all loans requested from the Maryland Business Recovery Loan Program. Complete information is necessary to evaluate and underwrite your request. Please attach the following with your application: 1. Proof of damages (photos, police report or insurance claim). 2. Proof of business insurance or affidavit. 3. Proof of business ownership-organizational documents (articles of incorporation, operating agreement or by-laws). 4. Proof of site control (such as a copy of deed or lease agreement). 5. Most recent Business Federal Tax Return. 6. Most recent Personal Federal Tax Return. 7. List of outstanding debt(s) for the business. 8. Most recent three (3) months business and personal bank statements. For Loans greater than $35,000.00, please also provide the following: 1. Last three (3) years Business Federal Tax Returns. 2. Last three (3) years Individual Federal Tax Returns. 3. Summary of related business experience of individual owners, partners and/or managers. 4. *Evidence of 5% capital contribution (e.g., cash contribution, purchase of inventory, equipment,etc.) from the applicant. Documentation must include method of payment. 5. A copy of the commitment letters from all participating lenders. 6. Evidence of the amount of funding committed from any other private and non-state public sources to the project, as applicable. 7. List of the outstanding business loans, including balances and payment amounts. If not applicable, provide a statement that no other loans exist. 9

10 MARYLAND BUSINESS RECOVERY LOAN PROGRAM 8. First quarter financial statements (profit & loss statement, monthly cash flow statement and balance sheet) for the business. 9. Historical financial statements (profit & loss statement, monthly cash flow statement, and balance sheet) for the past three (3) years. 10. Projected profit and loss statements and monthly cash flow statements covering a period of three (3) years following the submission of the loan application. 11. Copy of applicant s organizational documents, including by-laws, articles of incorporation, and operating agreement, if applicable. 12. Evidence of site control (such as a copy of a deed, a purchase contract, a lease or option to buy). 13. *Local government resolution of support for the project. Note: MBR will request this form from the local jurisdiction. 14. Copy of fire, hazard and/or liability insurance, as applicable. 15. Construction contract and architect s agreement, if architect is used. 16. * Copy of leases for tenant occupied properties. 17. * UCC searches on all entities and individuals. 18. * Minority Business Enterprise Plan if MBR construction funds exceed $250, Certificate of Good Standing for the business (required after approval). Please list the following contacts along with address, telephone and fax numbers and addresses: Attorney, if applicable: Title Company: Accountant: Bank Contact: 10

11 MARYLAND BUSINESS RECOVERY LOAN PROGRAM Please contact Colleen Cord-Malone, , toll free or with the Maryland Business Recovery Loan Program with questions regarding these application requirements. NOTE: All items listed must be submitted before a loan request may be fully processed. If the application for funds is approved, additional documentation to suit the particular project will be necessary before the loan can be closed and funded. Funds are limited and will be provided on a first come first serve basis. 11