1. SMALL BUSINESS FINANCING Division of Neighborhood Revitalization Martin O'Malley GOVERNOR Anthony G. Brown LT. GOVERNOR Raymond A. Skinner SECRETARY Clarence J. Snuggs DEPUTY SECRETARY

2. Business Lending Programs Neighborhood BusinessWorks Loan Program Microenterprise Loan Program Linked Deposit Maryland Capital Access Program

3. NEIGHBORHOOD REVITALIZATION Linked Deposit Program Program is for Certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banks Businesses certified by the Maryland Department of Transportation (MDOT) as a Minority Business Enterprise (MBE) are eligible 2% interest rate reduction on loans from enrolled financial institutions First National Bank, The Columbia Bank, Industrial Bank Loans are underwritten and approved by the financial institution Maryland State Treasurers office deposits matching funds in a CD at the lending institution Loans may not exceed $1 million Loan terms can not exceed 10 years Points 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 collateral Lender, 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 PNC The borrower applies directly to one of the lending institutions The 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 loans Neighborhood Business Works Loan Program Program provides gap financing to new or expanding small businesses and nonprofit organizations in Sustainable Communities throughout the State Loans from $10,000 - $500,000 No more than 50% of total project cost Loan terms from 5 – 15 years Interest rates from 3% - 5% Minimum 5% of total project cash contribution from applicant 75% collateral coverage and personal guarantees required Primary lender required This loan is underwritten and funded by the State Micro Lending Loan Program Program provides financing to new or existing small businesses and nonprofit organizations in Sustainable Communities throughout the State Loans from $5,000 - $35,000 Loan terms up to 5 years Interest rates competitive collateral and personal guarantees required This loan is underwritten and funded by the State

4. Eligible Applicants Maryland-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 centers Commercial Property Owners Commercial Property Tenants Developers Note: Local governments are not eligible applicants.

5. NEIGHBORHOOD BUSINESSWORKS Eligible Projects/Use of Funds New construction or rehabilitation Leasehold improvements Real estate acquisition Manufacturing Retail/Franchise Market/Planning/Feasibility studies Machinery and equipment Furniture, fixtures and equipment Working capital

6. Neighborhood BusinessWorks Program provides gap financing to new or expanding small businesses and nonprofit organizations in designated Sustainable Communities throughout the State Eligible uses: Commercial building rehab or leasehold improvement, equipment & furniture, inventory and working capital Loans from $10,000 - $500,000 Financing up to 50% of the total project cost Commitment for other 50% of project must be committed Loan 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 required This loan is underwritten and funded by the State

7. Sustainable Communities

9. Microenterprise Loan Program Program 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 expense Loans up to $35,000 Loan term up to 5 years Rates are from 5% - 7% Loan underwritten by the State or Intermediary Microlending Partners: Maryland Capital Enterprises Economic Development Group Prince Georges Financial Services

10. Linked Deposit Program provides more affordable capital to MDOT certified Minority Business Enterprises (MBEs) reducing the interest rate on loans from participating banks for businesses in Maryland Eligible uses: business restructuring or and other business expenses deemed eligible by participating bank and program guidelines Borrowers receive a reduced rate that is 2% below market Participating banks: First National Bank, The Columbia Bank, Industrial Bank Loans are underwritten and approved by the financial institution Maryland State Treasurers office deposits matching funds in the amount of the loan at the lending institution Loans may not exceed $1 million or a term of 10 years Points charged by lender can not exceed 1%

11. Maryland Capital Access Program Program 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 lender A loss reserve account is created to strengthen applications with weak credit or collateral Lender, 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 PNC The borrower applies directly to one of the lending institutions The loan is underwritten and funded by the lending institution Eligible loan amounts are from $10,000 - $1 million

12. Neighborhood BusinessWorks/Microenterprise Project: Potomac Gourmet Pantry Loan Amount: $300,000 Location: Prince Georges County Jobs Created: 25 Loans Closed: October 2010 22 Project: Babe (A Boutique) Loan Amount: $35,000 Location: Baltimore City Jobs Sustained/Created: 2 Loans Closed: June 2011

13. Linked Deposit/Maryland Capital Access Borrower: Amtrac Railroad Contractors of Maryland, Inc. Loan Amount: $431,660 Location: Washington County Jobs Sustained: 3 Loans Closed: May 2009 22 Borrower: Ed Paton Insurance Loan Amount: $75,000 Enrolled by: BB&T Location: Prince Georges Jobs Retained: 3 Loan Closed: June 2010

14. Neighborhood BusinessWorks Projects Arrow Bicycle, Hyattsville, MDJoie De Vivre, Cambridge, MD Big Bad Woof, Hyattsville, MDRoscoes Neapolitan Pizzeria, Takoma Park, MD

15. Limerick PubWheaton BeforeAfter

16. John L Williams Funeral Directors Baltimore City Before After

17. Pemberton Café Salisbury BeforeAfter

18. Joie de Vive Cambridge Before After

19. Neighborhood BusinessWorks Since 1996, Neighborhood BusinessWorks has: Loaned more than $62 million to 300+ businesses, creating 6,170 jobs across Maryland and leveraging $206 million in private investment Loaned nearly $16 million to 88 businesses in historic Main Street Maryland communities

20. Thank You For More Information Contact: Michael Haloskey, Director Business Lending Phone: 410-514-7237 Email: Haloskey@mdhousing.orgHaloskey@mdhousing.org Cheivelle Hill, Senior Loan Underwriter Phone: 410-514-7245 Email: Hillc@mdhousing.orgHillc@mdhousing.org