|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.
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.
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.
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.