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Businesses of all sizes need access to funding in order to keep up with the competition, expand, or create new product lines. If you’re a business in Maryland, you might not be sure where to go to access the funds you need.
Here’s a breakdown of the various options for financing available to Maryland businesses from small business grants to loans in Maryland.
On this page:
- Small Business Loans in Maryland
- Maryland Small Business Grants
- Small Business Investors in Maryland
- Getting Your Business Ready for Financing
- What Kind of Financing Do You Need?
Small Business Loans in Maryland
Wondering where you can get small business loans in Maryland. Here are some online loans available to business owners in Maryland:
As low as 6.00%
$5,000 – $2 million
1 – 5 years
The above information is for the Lendio Business Term Loan.
Lendio is the largest small business loan marketplace in the U.S. with a network of over 300+ lenders. These lenders include PayPal, Bank of America, American Express, and more.
Maryland business owners can apply with one simple application without impacting their credit. The application process can be completed online in 15 minutes with no fee or obligation. If approved, funds can be made available in as little as 24 hours.
- Short term loan
- Business term loan
- Business line of credit
- Merchant cash advance
- Business credit card
- Equipment financing
- Commercial mortgage
- Startup loan
- SBA loans
- Accounts receivable financing
- Business acquisition loan
9.77% – 35.98%
$5,000 – $500,000
6 – 60 months
The information above is for the LendingClub Business Term Loan.
LendingClub is a peer-to-peer lender that connects investors with businesses in need of financing. To be eligible, businesses must have at least $50,000 in annual sales, as well as been in business for 12 months or more.
You can apply online in under 5 minutes and receive multiple quotes. If you decide to pay off your loan early, there are no prepayment fees to worry about.
7.00% – 69.00%
$500 – $250,000
6, 12, or 18 months
The information above is for the Kabbage Business Line of Credit.
Kabbage is a small business lender offering a business line of credit. The lender has a low minimum loan amount which can make it a good option for Maryland business owners in need of a small amount of financing.
In order to be eligible, your business needs to be at least 12 months old, with $50,000 in annual revenue.
Maryland Small Business Grants
Grants are a great way to fund your business because they don’t have to be repaid. Here are some great Maryland small business grants and Maryland startup grants to consider.
Small, Minority and Women-Owner Business – Video Lottery Terminal Fund
You might be able to get a grant from this fund if you’re a minority or a woman-owned business and you’re located around one of these six Maryland casinos: Maryland Live in Anne Arundel County, Hollywood Casino Perryville in Cecil County, Rocky Gap in Allegany County, Ocean Downs in Worcester County, Horseshoe Casino in Baltimore City or National Harbor in Prince George’s County.
This program provides grants, loans and investments that support initiatives aimed at economic development. Grant providers prioritize initiatives that will use the funds in ways that support business attraction and retention; infrastructure; brownfield redevelopment; arts and entertainment districts; daycares; and local strategic planning. Funds are distributed to specific priority areas.
This grant is for small to mid-sized companies that need money to help with international marketing efforts to increase their exports. The grants provide up to $5,000 towards expenditures such as trade show fees, the translation of brochures, airfare, or website development.
The Maryland Energy Authority provides over a dozen grants and credits for companies looking to upgrade or retrofit equipment to be more energy efficient. Some grants are directed towards specific types of renewable energy, such as the Community Solar Grant, while others are aimed by industries such as the Animal Waste to Energy Grant, which is for agricultural producers.
Maryland Momentum Fund
The Maryland Momentum Fund is designed for early stage companies associated with the University System of Maryland in some way. The fund has up to $500,000 to give out to companies able to get a matching investment within six months.
Learn more: http://www.otc.umd.edu/node/87
Maryland Economic Adjustment Fund
This fund helps businesses modernize their manufacturing, enter new markets, or develop commercial applications for their existing technologies. It is aimed at manufacturers, wholesalers, service companies, and others in the skilled trades. Funds can be used for working capital, machinery and equipment, building renovations, real estate acquisitions, and site improvements.
Learn more: http://www.otc.umd.edu/node/87
Maryland Value Added Producer Matching Grant
This grant is designed to match up to 15% of the USDA’s Value Added Producer Grant (capped at $75,000). This grant isn’t designed for capital purchases but gives businesses in the agricultural industry funding to help with planning and working capital.
Partnership for Workforce Quality
This program provides matching grants for training or support services to small to medium manufacturing and technology companies. The grants are used to increase the skills of workers to help them with adapting to new technologies or production processes.
NIH Small Business Innovation Research
The NIH provides programs that allow small businesses to engage in federal research and development on initiatives where there is a high chance of commercialization. The fund supports technology transfer, particularly within health and life sciences companies.
Learn more: https://sbir.nih.gov/
Maryland Technology Internship Program
The Maryland Technology Internship Programs gives companies funding to recruit and retain top talent through paid internships. The funds are for technology-based businesses and state and local agencies and the funding allows eligible businesses and agencies to hire more interns.
Learn more: https://mtip.umbc.edu/
Small Business Investors in Maryland
Investors in Maryland may also be willing to support your business. Here are some angel investors and venture funds to consider If you’re looking for Maryland small business financing.
Maryland Casino Business Investment Fund
This fund provides help to small businesses as well as to minority, women, and veteran owned businesses by offering term loans, lines of credit and equity investments. Around 50% of funds must got to businesses in zip codes of targeted areas around certain casinos. The other 50% of funding is available to businesses anywhere in Maryland.
Learn more: https://www.mcbif.com/
TEDCO is a venture capital firm with a number of funds that support Maryland businesses. TEDCO has a builder fund that provides pre-seed capital for start-up companies. The firm also has a seed fund for startups that are slightly more developed as well as a venture fund and a tech transfer fund. Funds are open to businesses in any sector and at any stage of development.
Learn more: https://www.tedcomd.com/funding
Baltimore Angels is an angel investing network that meets monthly in Baltimore. It looks for companies that have working capital and a product already launched but who are looking to scale their business. They are generally mid-stage investors and do not provide funds at a very early stage.
Getting Your Business Ready for Financing
You’ll have to meet different requirements in order to qualify for loans, grants, or other types of business financing.
For example, many online lenders and many local lenders look primarily at the owner’s personal credit to make lending decisions. But building a good business credit score is also important – especially the longer your business is in operation. You’ll also need to have a business bank account as that is often a requirement of getting a loan.
Lenders will also look at other factors when deciding whether to lend to you, such as the number of years you’ve been in business, the number of employees you have, and your annual revenue. And, many want to see a business plan. Grants and angel investors will likely want to know more about your business plan and projected revenue as well.
To get your business ready for financing, focus on improving your business and credit so that lenders and investors will see your company as an attractive investment.
What Kind of Financing Do You Need?
Not all kinds of financing are created equal. Depending on your business, one type of funding might be better for you. For example, a line of credit is best for ongoing capital needs since you can use the funds, repay them and then borrow those same funds again.
Grants and equity investments are great when you need money but won’t be able to make payments on a loan because you are pre-revenue or because you need to reinvest all your profits into the business.
A loan from an online lender is likely better if you have bad credit and are unlikely to get a loan from a bank. It also might be the best fit for you if you need money fast. In contrast, if you are an established business and have good credit, a secured bank loan or a Small Business Administration loan would likely be the best bet since it would give you access to the most favorable terms and the lowest interest rate.
If you’re a small business in Maryland, there are a number of different ways to access financing from investors in Maryland to Maryland small business grants. To figure out which is right for you, consider which you’re going to be more likely to qualify for and what is the best fit for your business.
Author: Amanda Reaume