BaltimoreMICRO - Revolving Loan Fund

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1 BaltimoreMICRO - Revolving Loan Fund sbrcbaltimore.com FACT SHEET Description and purpose Administered by the Baltimore Development Corporation (BDC), the purpose BaltimoreMICRO is to provide existing small businesses with financing for the working capital (the difference between current assets and current liabilities) essential for businesses to meet operational needs, and to remain financially viable. Loan funds will also be available for capital purchases such as furniture, fixtures, machinery, and equipment. BaltimoreMICRO is designed to assist small businesses that may not be able to secure financing from a traditional lender. BaltimoreMICRO will provide critical financing when credit access is limited, supporting the development and expansion of small, local businesses. The primary objective of BaltimoreMICRO is to stimulate employment, assist small businesses in obtaining fixed rate financing, and to encourage private sector investment in Baltimore City. How does the program work? Potential applicants must meet with the Small Business Resource Center to review eligibility Submit application BDC determines whether proposed use is consistent with program s guidelines BDC staff seeks approval from BDC Loan Committee BDC staff prepares loan documents Applicant executes loan documents Disbursement of funds Eligible applicants Existing small businesses, including retail, service providers and contractors located in Baltimore City Personal credit report score of 620 or higher Applicants must be one of the following for profit entities: sole proprietor, partnership, corporation, or LLC Small business cannot exceed $3,000, in annual revenue

2 Eligible use of funds Any of the Following: Working Capital Building improvements Machinery, equipment, furniture, and fixtures Can be used to finance City, State, or Federal contracts Inventory Purchase and certain other costs associated with opening or expanding a small business Contract mobilization Loan Terms Minimum loan of $5,000 with a maximum loan of $30,000 not to exceed a loan to value of 95% of total project costs. Additional borrower may be required (refinancing is prohibited under this program) $ application fee (nonrefundable) 1.0% closing fee of the loan amount; for example, a $20,000 loan would require a $200 fee at closing Real estate related loans will incur a higher closing cost Documentation preparation fee of $200 to $300 due at closing plus any filing fees and credit report fees Interest rate to be determined upon approval, but not to exceed 8.0% over the Wall Street Journal Prime Rate Loan term is based upon use of funds but not to exceed 7 years Personal guarantees required Collateral may be required No prepayment penalties Loan Guidelines Project viability and potential Commercial improvements Impact of the project on its neighborhood Introduction of needed goods or services to a neighborhood Creation of new jobs Readiness to proceed All federal, state, and local taxes must be up-to-date No outstanding judgments or liens

3 Restrictions Priority is given to projects that strengthen neighborhood commercial districts and are part of a greater revitalization strategy. The following types of projects and activities will not be considered for BaltimoreMICRO financing: o Speculative developments or Real Estate Investment properties o Housing or rental properties o Refinancing o Facilities such as: community halls, fire stations, hospitals, colleges, or universities. Adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, blood or plasma donor center, massage parlors, pawn shops, or tanning salons For more information contact: Paul Taylor, SBRC,

4 BaltimoreMICRO Loan Application BUSINESS INFORMATION Business Name Telephone ( ) Tax I.D. Individual Name(s) Telephone ( ) Social Security # Date of Birth: Proprietorship Partnership Sub-Chapter S Corporation Sole Proprietor Individual LLC Ownership Distribution: (List stockholders, partners, owner names) Note: Attach separate sheet if additional space needed. Name Title # of Years % SS# Name Title # of Years % SS# Name Title # of Years % SS# Nature of Business Year Established Number of Employees Years at Present Location [ ] Own [ ] Lease Accountant Telephone ( ) Insurance Agent Telephone ( ) Attorney Telephone ( ) FINANCIAL INFORMATION Bank of Account Account Number Credit Relationships: Please provide details of your business credit relationships below: Original Loan Amount Maturity Name of Creditor Purpose of Loan Amount Presently Owing Repayment Terms Date $ $ $ $ $ $

5 LOAN REQUEST Amount of Loan Requested Type of loan Requested Term of Loan [ ] Term Loan Specific Loan Purpose (Check all that apply) [ ] Working Capital [ ] Finance Purchase of Inventory [ ] Finance Purchase of Furniture, Fixtures or Equipment [ ] Finance Purchase of Business Collateral Available* (Check all that apply) [ ] All Assets (accounts receivable, inventory, machinery and equipment) [ ] Specific Equipment (Please attach equipment list, including serial numbers or description of Equipment, and invoices for new equipment.) [ ] Real Estate (Please attach property address, legal description and a copy of most recent tax bill.) Square Feet Acres [ ] Cash on Deposit at (name of bank) Branch Account # [ ] Personal Assets (As described in Personal Financial Statement.) * Collateral: Loans are secured by collateral, which is property in which a security interest is granted to secure repayment of the loan. The loan collateral may include business assets, stocks, bonds, certificates of deposits, or personal assets. Consider (1) the value of the loan collateral must be equal to or greater than the amount of the loan, (2) expected economic life of collateral will be considered by the Bank in evaluating the collateral offered for the loan, (3) formal collateral appraisals may be required, and (4) a pledge of personal assets may be required as additional collateral for the business loan requested. [ ] Guarantors** (Please list) Name Social Security # Name Social Security # Name Social Security # ** Guarantors: For incorporated borrowers, guarantees of owner(s) is required, unless secured by Bank deposits or marketable collateral. If personal assets are in joint names, a sole proprietorship, and/or partnership, the Lender may require all parties to pledge collateral.

6 BUSINESS BACKGROUND INFORMATION Please provide a brief history of your business, future plans and projections, and describe your products and/or services and competition. PERSONAL BUSINESS EXPERIENCE If you have been in your present business for less than five years, please describe your previous business experience. (Include business background, management experience, and training, or include a resume.) MISCELLANEOUS INFORMATION Are tax liabilities current? [ ] Yes [ ] No Settled through Is the business an endorser, guarantor, or co-maker for any obligation not listed in the financial statements? [ ] Yes [ ] No If yes, what is the contingent liability? Has the business or principal owner ever declared bankruptcy? [ ] Yes [ ] No If yes, provide details on a separate sheet. Is the business a defendant in any lawsuit? [ ] Yes [ ] No If yes, provide details on a separate sheet. Are any of the business assets encumbered by liens or attachments of any type? [ ] Yes [ ] No What By whom Amount $ What By whom Amount $ What By whom Amount $ Does the business have a pension fund? [ ] Yes [ ] No Profit-sharing plan? [ ] Yes [ ] No

7 If so, does the plan have any unfunded pension liabilities? [ ] Yes [ ] No Amount $ CERTIFICATION The undersigned certifies that, to the best of his or her knowledge and belief, all information contained in this loan application and in the accompanying statements and documents is true, complete, and correct. The undersigned agrees to notify the BDC immediately of any material changes in this information. It is further agreed that, whether or not the loan herein applied for is approved, the undersigned will pay or reimburse the bank for the costs, if any, of surveys, title or mortgage examinations, appraisals, etc., performed by non-bank personnel with the consent of the applicant. The undersigned authorizes the Bank to contact any bank and trade creditors it deems necessary without further notice, including, but not limited to, Dunn & Bradstreet reports or information from TRW Credit Data. Business Name (print): Applicant Signature: Applicant Title: Date: Guarantor(s) Signature: Guarantor(s) Signature: Date: Date: BUSINESS LOAN APPLICATION CHECKLIST Please be sure all of the following documentation has been included in order for your business loan application to be processed. [ ] Business Loan Application [ ] Accountant-Prepared Business Financial Statements (Profit and Loss, Balance Sheet) for the past three fiscal years [ ] Business Federal Tax Returns for past three fiscal years [ ] Interim Financial Statements (if available) [ ] Most Recent Federal Tax Returns for each principal owner listed in the first section of the Business Loan Application [ ] Personal Financial Statement [ ] Organizational Papers (Articles, dba papers, etc.) [ ] OTHER:

8 PERSONAL FINANCIAL STATEMENT As of, 20 Complete this form for: (1) each proprietor, or (2) each limited partner who owns 20% or more interest and each general partner, or (3) each stockholder owning 20% or more of voting stock or (4) any other person or entity providing a guaranty on the loan. Name Business Phone ( ) Resident Residence Phone ( ) City, State & Zip Code Business Name of Applicant/Borrower ASSETS LIABILITIES (Omit Cents) Cash on hands & in Banks $ Accounts Payable $ Savings Accounts $ Notes Payable to Bank and Others $ IRA or Other Retirement Account $ (Describe in Section 2) Accounts & Notes Receivable $ Installment Account (Auto) $ Life Insurance Cash Surrender Value Only $ Mo. Payments $ (Complete Section 8) Installment Account (Other) $ Stocks and Bonds $ Mo. Payments $ (Describe in Section 3) Loan on Life Insurance $ Real Estate $ Mortgages on Real Estate $ (Describe in Section 4) (Describe in Section 4) Automobile Present Value $ Unpaid Taxes $ Other Personal Property $ (Describe in Section 6) (Describe in Section 5) Other Liabilities $ Other Assets $ (Describe in Section 7) (Describe in Section 5) Total Liabilities $ Net Worth $ (Omit Cents) TOTAL $ TOTAL $ Section 1. Source of Income Contingent Liabilities Salary $ As Endorser or Co-Maker $ Net Investment Income $ Legal Claims & Judgments $ Real Estate Income $ Provision for Federal Income Tax $ Other Income (Describe below)* $ Other Special Debt $ Description of Other Income in Section 1 * Alimony or child support payments need not be disclosed in Other Income unless it is desired to have such payments counted toward total income.

9 Section 2. Notes Payable to Bank and Others. (Use attachments if necessary. Each attachment must be identified as a part of this statement and signed. Original Current Payment Frequency How Secured or Endorsed Name and of Noteholder(s) Balance Balance Amount (monthly, etc.) Type of Collateral Section 3. Stocks and Bonds. (Use attachments if necessary. Each attachment must be identified as a part of this statement and signed). No. of Shares Name of Securities Cost Market Value Quotation/Exchange Date of Quotation/Exchange Total Value Section 4. Real Estate Owned. part of this statement and signed). Type of Property (List each parcel separately. Use attachments if necessary. Each attachment must be identified as a Property A Property B Property C Date Purchased Original Cost Present Market Value Name & of Mortgage Holder Mortgage Account Number Mortgage Balance Amount of Payment Month/Year Status of Mortgage Section 5. Other Personal Property and Other Assets. (Describe, and if any is pledged as security, state name and address of lien older, amount of lien, terms of payment, and if delinquent, describe delinquency). Section 6. Unpaid Taxes. (Describe in detail, as to type, to whom payable, when due, amount, and to what property, if any, a tax lien attaches).

10 Section 7. Other Liabilities. (Describe in detail) Section 8. Life Insurance Held. (Give face amount and cash surrender value of policies name of insurance company and beneficiaries). I authorize BDC/Lender to make inquiries as necessary to verify the accuracy of the statements made and to determine my creditworthiness. I certify the above and the statements contained in the attachments are true and accurate as of the stated date(s). These statements are made for the purpose of either obtaining a loan or guaranteeing a loan. I understand FALSE statements may result in forfeiture of benefits and possible prosecution by the U.S. Attorney General (Reference 18 U.S.C. 1001). Signature: Date: Social Security Number: Signature: Date: Social Security Number: PLEASE NOTE: The estimate average burden hours for the completion of this form is 1.5 hours per response. If you have questions or comments concerning this estimate or any other aspect of this information, please contact BDC, at 36 S. Charles Street, Baltimore, Maryland.