Maryland Small Business Loans

Every business goes through cycles of ups and downs during its lifetime. Some years are profitable, others less so. Whether you’re a startup or an existing business, an influx of capital can always help. The challenge is to find the right loan for your specific business needs - from organizations with fair terms and reasonable interest rates.

At a glance Maryland has almost half a million small businesses operating within the state, employing close to 200,000 people and creating an estimated 40,000 new jobs every year. These small businesses make up 99.5% of the total economy in the state. Growing these small businesses is in the best interest of the Maryland economy, and one way of doing this is by granting small business loans in Maryland.

Top Four Maryland Small Business Loan Options

When looking for funding, there are specific criteria that you need to consider. Things like the interest rate, the loan term, and the cost of attaining the loan are essential factors. Many lenders specialize in the state of Maryland and can help your business grow. 

1. Headway Capital

Headway Capital offers businesses that operate in Maryland small business loans. The company feels strongly about accessing funds quickly without needing your credit record to be pristine. Headway Capital allows for revolving credit, and you can feel safe working with the online portal, as it has bank-level encryption. 

Get up to $100,000 to invest in your business, with the option of weekly or monthly repayments. Headway Capital allows you to make a minimum loan of $5,000 and doesn’t compound your interest. You can choose the loan term, which is either 12, 18, or 24 months. You can also pay off your outstanding loan amount without incurring any additional fees.

Withdrawals are subject to a 2% fee, so you should make sure to withdraw enough to cover all your needs and avoid paying the 2% repeatedly. You can make a withdrawal from your credit facility at any time, night or day, and the amount will be in your bank account by the next business day. The interest rate Headway Capital offers is based on your credit record. Headway Capital prides itself on not having any hidden costs that business owners need to worry about. You can easily contact their customer service line if you have any additional questions regarding your loan. 

2. Fulford Lending

Serving Maryland, Virginia, and Washington, DC, Fulford Lending promises rapid approvals for residential and commercial borrowers. Fulford Lending doesn’t do a credit check but instead looks at your equity position to determine how much you’ll be allowed to borrow. If your business has good assets, you’ll be able to get a credit facility from Fulford without having to worry about your credit record. 

The company often gives provisional approval for loans over the phone, whereafter you’ll be able to negotiate the terms and conditions. The purpose of this provisional approval is to speed up the process so that you can access additional funds as quickly as possible. 

You can pay off your loan early without a prepayment penalty. The company offers small business loans in Maryland with various repayment terms, interest rates, and amounts, allowing you to quickly access the funds you need. Fulford Lending offers customer care available during business hours to answer any questions you have about your loan. 

This company’s focus is to do things fast, so you don’t have to wait for extended periods. With this in mind, you can trust that the customer care representatives will help out you as quickly and efficiently as they can.  

3. Innovation Gateway

An organization specifically aimed at helping African-American entrepreneurs, Innovation Gateway offers startups the opportunity to apply for a loan through the SBDC. They’ll assist you in starting the business by assigning a business counselor to train you. If you’re interested in starting a business as an African-American, this organization will offer plenty of assistance.

4. SBA Loan

An SBA loan is a small business loan in Maryland that the Small Business Administration guarantees. You can usually apply for one of these loans through a bank, and the SBA guarantees up to 85% of the loan amount, which is funded through various lending programs. Since the government backs these loans, it takes the bank’s risk, which allows them to grant loans to small businesses that might not qualify for traditional loans. 

You can expect low interest rates from an SBA loan, starting at 5.5%. You can get loan amounts up to $5 million, with repayment terms as long as 25 years. Even though an SBA loan has plenty of paperwork and administration, you can access your funds within two weeks in many instances. These approval times are longer than many other lenders, but you’ll struggle to find institutions with similar low interest rates and long loan terms. 

Many small business loans place restrictions on what you’re allowed to use the money. An SBA loan is different and allows you to use the loan for a wide range of business needs. You can use the capital influx for wages, renovations, working capital, or expanding your business. 

There are different SBA loans that you can consider, including COVID-19 disaster relief. You can contact your local bank to find out more about an SBA loan for your Maryland small business. Some of the top banks that offer these loans include Wells Fargo, Cadence Bank, SunTrust, J.P. Morgan Chase, and First Home Bank. 

Top Online Maryland Small Business Loan Options

Various online sites provide loans for small businesses in Maryland. If you’re interested in saving time while applying for a loan, an online application might be the right way to go. 

1. BlueVine

BlueVine is an online lender that prides itself on the speed with which it administrates loans. The company offers loans from $10,000 with competitive interest rates based on your credit record. Depending on your credit profile, you can get interest rates as low as 4.8%. The maximum amount that BlueVine offers is $250,000. If you’re worried about an online lending company’s customer service, you can rest assured that you’ll receive excellent person-to-person service from BlueVine.   

You can pay your loan off over a minimum period of six months, and you need to make payments every week, which is more frequent than most lenders. You need to pay your loan off within one year. Your credit score can be as low as 600 and you will still be considered for a loan. The company believes in offering credit to those who struggle to support their businesses. You can use the credit for various purposes, including cash flow or a startup. 

2. Kabbage

Kabbage is another company that is good to consider if you have a poor credit profile. Kabbage considers itself disruptive in the financial market, offering loans to those who won’t be approved through more traditional sources. This company offers loans quickly, so you can cover unexpected expenses that crop up. Kabbage doesn’t force you to take a loan that’s more than what you actually need. You can give any excess funds back without paying charges or penalties. 

Once Kabbage approved your credit facility, you’ll receive a debit card you can use anywhere with no hassles. This card makes payments effortless. 

Since Kabbage offers credit to high-risk customers, you can expect high interest rates. The company also has a complicated fee structure that can be difficult to figure out. You can contact the customer service representatives seven days a week to discuss these fees. 

To qualify for a Kabbage loan, your business must make a revenue of at least $50,000 per year and $4,200 per month for the last three months. You can’t get startup funding for a new business from Kabbage, as they only consider businesses that have been operating for at least one year. 

Kabbage doesn’t charge any origination fees for your loan. While there are no incentives for paying your loan off early, there are no penalties to do so. You will face fees if you don’t pay your installments on time. 

3. Square Capital

For smaller loans, Square Capital is a good choice. You can get loans as small as $500, going up to $100,000. This company aims at assisting small businesses to grow faster. There are various loans aimed at small businesses, which you have to pay off over a maximum of 18 months. The cost of the loans ranges between 10% and 16%. 

You must have an existing merchant account to qualify for a loan, and your business must have an annual turnover of at least $10,000. You must also use Square Capital point of sale software since this is how you’re going to make repayments. There are no fees for late payments, no hidden costs, and no fees for settling your loan early. It seems like the only disadvantages to getting a Square Capital loan are a slow response from customer service and high annual percentage rates.

How to Prepare for a Maryland Small Business Loan

Depending on which institution you decide on using, there are a few documents that you should have ready before applying for a loan. Here are some of the documents that you should get ready before you apply:

  • Your credit score
  • At least three month’s bank statements
  • Proof of income
  • Tax registration
  • Proof of tax payments for recent years
  • Depending on the type of loan, you may need a list of assets or details for your biggest customers

Each company will have individual requirements and can request proof of income for the business or other documents. You can contact customer service to enquire precisely which documents you need to prepare to qualify for a loan. 

The Bottom Line

If your business needs a push, you should consider looking into one of the top sources for a small business loan in Maryland. Choose a company that will meet your business’s needs and allows you to use the funds for the intended purpose. Analyze the interest rates and repayment costs. You should also consider your credit score when deciding where you should apply for a loan.