Small Business Loans in Maryland

Maryland earned the title of “Old Line State” for the heroic fighting of its troops during the Revolutionary War. Today, Maryland’s regiment of small businesses—supported with loans from a sizable legion of banks, credit unions, and nonprofit institutions—deserves the same recognition of strength in the state’s economy.

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Types of Maryland Small Business Loans

Lenders in Maryland know how to structure loans for small businesses engaged in healthcare, professional services, construction, real estate, retail, and high-tech manufacturing. Long-term loans can be arranged for purchases of fixed assets, short-term loans, or revolving lines of credit to meet working capital needs.

SBA loans

SBA loans are business loans that are partially backed by the Small Business Administration (SBA), a federal agency. These loans are serviced by private lenders, but are popular because they generally have good interest rates.

Line of credit

Use a line of credit as a flexible form of financing. Unlike with a loan, this option does not involve a big disbursement upfront that you must repay, providing a flexibility that better fits many entrepreneurs’ needs.

Term loan

Term loans are common small business loans in which you would apply for a large disbursement of capital and then repays it over several years, along with fixed or variable interest.

Equipment finance

With equipment financing, you receive a piece of equipment and then pay off the cost of the equipment in installments. This way, your business can make money off the equipment immediately, even if you don’t have the funds to buy it at the sticker price.

Accounts receivable financing

Accounts receivable financing is an alternative form of business financing in which your unpaid invoices serve as collateral for a lump disbursement of funds.

Maryland Small Business Loan Options

Bankers, credit unions, and numerous nonprofit financial institutions in the Old Line State support small businesses with a wide variety of loan programs. Lenders like to support the growth and development of small businesses because it increases the economic basis of the community and adds jobs.

Maryland Economic Adjustment Fund (MEAF) provides loans for underserved businesses with fewer than 50 employees to upgrade their operations, increase working capital, purchase real estate, or expand their markets.

Maryland Resource-Based Industry Financing Fund (MRBIFF) works with local vendors to provide low-interest loans for farmers to purchase land or capital equipment.

Neighborhood Business Works offers flexible financing to new and existing businesses located in older commercial districts or town centers.

In Baltimore City, Baltimore Business Lending offers microloans for small business owners with credit issues or insufficient collateral. BBL gives special consideration to women- and minority-owned businesses.

Maryland Small Business Development Financing Authority (MSBDFA) provides financing for businesses owned by economically and socially disadvantaged entrepreneurs.

Maryland Capital Enterprises provides funding for small and micro businesses in Maryland that wish to start or expand their businesses.

SECU is a top credit union in Maryland that offers multiple loan products to small businesses in the state.

The Harbor Bank of Maryland is provides several loan products including lines of credit, SBA loans, and commercial real estate loans to small businesses in the state.

Four simple steps to funding.

Tell us about your business.

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Submit your application.

We’ll present your application to our marketplace 75+ lenders. Applying is free and won’t impact your credit score.

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Find the funding option with the terms that best fit your small business goals.

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Once you accept, funding can hit your bank account in as little as 24 hours.

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FAQs

What other resources are available to Maryland small businesses?

In addition to the traditional lending resources, there are other organizations in Maryland that provide programs to assist new businesses with their financing and managerial needs.

The Maryland Small Business Development Centeroffers free consulting and training for small business owners and also assists a network for owners in connecting with lenders. At Mid-Maryland SCORE, business owners can get guidance and advice from experienced executives and corporate managers.

What Maryland small business grants are available?

In addition to loans, small business owners in Maryland can also take advantage of various grants. The governor’s office of Maryland maintains a list of grants available from the state and private foundations. For federal grants available to Maryland businesses, you can search the website Grants.gov.

What do I need to qualify for a loan in Maryland?

When you first set up your business, you’ll have to decide what type of business structure you intend to use. You can begin as a sole proprietorship, or you could start out by incorporating or setting up a limited liability company (LLC). If you’re incorporating or forming an LLC, you’ll need to register the name with the Maryland Department of Commerce.

Before you complete and submit an application, find out what documentation your lender needs. To increase your chances of getting your loan approved, you will want to present documentation that clearly states the purpose of the loan, how you intend to pay them back, and the collateral that will be used to secure the loan.

Which loan is right for my Maryland business?

If you need the funds to purchase a fixed asset, such as equipment or real estate, you want to go for a long-term loan with the payments distributed over several years. If you need the funds to finance current assets or working capital, a line of credit or some other type of short-term loan,—such as advances against your accounts receivable—would be the best way to go. Repayments for both long-term loans and short-term loans should coincide with your cash flow. Online platforms, such as Lendio, have financial advisors who can help you assess the best financing instrument for your business, based on your needs.

How can a Maryland business loan help my business?

Borrowing money to support the growth and development of your business is necessary to reach an acceptable return on your investment. Initial capital is often not enough to fund the operations of a business and provide a financing basis to support growth. Lenders exist with the mission to make loans to small businesses to expand their economic base and increase employment. Your business will be able to grow faster when you have working relationships with banks and credit unions helping you along the way.

What are the benefits of an SBA loan?

SBA loans are backed by the government and offer lower interest rates than other types of small business loans. They typically require a minimum time in business of two years and a credit score of 650+.

Ready for funding?

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