Revolving Loan Fund

Western Maryland Revolving Loan Fund

The Western Maryland Revolving Loan Fund Program is a pool of money granted by federal and state entities for the purpose of making loans to create and/or save jobs. Borrowers repay loans and the money is returned to the RLF to make other loans. In that manner, the RLF becomes an ongoing or “revolving” financial tool.

rlf map

The Summit Financing Solutions Revolving Loan Fund serves as a source for gap financing for small businesses seeking to locate or expand in Maryland’s Garrett, Allegany, and Washington counties. Established in 1980, the program has facilitated the creation and expansion of businesses that have created or saved jobs in the Appalachian region. The program operates by participating with banks and other lenders to assist in financing a business project.

  • Loan amounts range from $10,000 - $400,000

  • Bank or other lender must be involved for at least 50% of the total project cost

  • Eligible Purposes:  business acquisition, commercial real estate acquisition, building improvements, equipment purchase, leasehold improvements, business start-up costs, and working capital

  • Ineligible Uses:  Refinancing existing debt, real estate for speculation, projects that do not create or retain permanent jobs, and projects that otherwise qualify for financing through traditional lenders or other programs

  • Eligible entities include for-profit corporations, partnerships, or sole proprietorships located in Garrett, Allegany, or Washington County in western Maryland

  • Use of standard underwriting practices; factors to be considered include repayment capacity, financial strength of the company and guarantors, industry and management experience, and collateral protection

  • Maximum loan terms are 5 years for working capital, and up to 15 years for fixed assets

  • Interest rates are tied to the prime interest rate and are currently prime plus 1 percent, with a floor of five percent

  • The project to be financed must create or retain a minimum of one job for each $30,000 of RLF funds requested

  • Application fee of $250 (non-refundable) for loan processing

  • Approved borrowers are assessed a one and one-half percent (1.5%) loan origination fee at closing

  • Collateral required includes Deeds of Trust, Machinery and Equipment liens, Personal Guarantys, and Key Man Life Insurance