Small Business Growth Fund
Small Business Growth Fund
The Small Business Growth Fund (a guaranteed revolving loan fund) is available to established businesses with at least 3-5 years of profitable operating history. This program is designed to assist emerging growth companies in response to access to new markets and expansion challenges.
Typically, FSC First is the lender of choice to qualified businesses seeking financing for general working capital, leasehold improvements, inventory, equipment (not rolling stock) purchases, and human capital increases for the purpose of expanding their already-established business.
Minimum Loan: $25,000
Maximum Loan: $250,000 ($100,000 for start-ups)
Term: Up to 10 years
Interest Rate: Capped at Wall Street Journal Prime Rate + 2%
The loan proceeds can be combined with and subordinated to traditional bank financing. FSC First will take a junior lien position on pledged assets to secure the loan. However, the repayment of the loan must be based upon the applicant's demonstrated ability to generate sufficient cash flow to cover the debt service or loan repayment.
In addition, FSC First requires unlimited corporate guarantees as well as personal guarantees from all individuals who own 20% or greater ownership interest in the business seeking financing.
FSC First may require controlled disbursements of loan proceeds. In other words, the loan proceeds will be disbursed through joint payee checks to the vendor and borrower.
Currently, this program is restricted to qualified businesses located in Prince George's County, Maryland.
Typically, in select circumstances, financing is provided to start-up businesses on a case-by-case basis.
NOTE: This program has been in existence since 1996 and historically received SBA 7(a) guarantees on all loans until October 2008. Since 2009, FSC First successful obtained alternative guarantees from the State of Maryland.
If you are ready to apply for the Small Business Growth Fund now, please click here or call 301-883-6900.