Expansion Loans

Maryland Capital Enterprises, Inc. (MCE) provides small business loans to businesses located in MCE’s Service Area: Wicomico, Worcester, Somerset, Dorchester, Talbot, Caroline, Queen Anne’s, and Kent counties of Maryland’s Eastern Shore and also Baltimore City, Anne Arundel, and Baltimore counties.

You must be in business for at least 2 years to qualify for the higher loan amount and have 2 years of tax returns to present to the committee.

Who is eligible?

  • A start-up for-profit business owner with 10 or fewer employees
  • Has tried to receive a loan through a traditional lender or a bank
  • Located within MCE’s Service Area listed above
  • Must have a clearly established business idea and business plan (MCE can help to develop a business plan)
  • Ability to create full-time and/or part-time employment for low to moderate-income residents
  • Must be a U.S. citizen or legal alien
  • Must demonstrate the ability to repay the loan
  • Must have reasonable credit history and payment records

Terms and Fees

  • Loans for any amount from $5,000 to $150,000
  • Up to 10 years
  • Interest rate from 6% to 12%
  • 1% closing fee of the loan amount
  • Legal Reserve Fee ($250 – $1,500)
  • $100 Non-refundable Application Fee
  • $25 Credit Report Fee per applicant (non-refundable)
  • MCE will conduct semi-annual site visits to your business
  • No costs or penalties for early repayment
  • Security may be required up to the full amount of the loan
  • Applicants must be sole proprietors, partnerships, corporations, or LLCs

What can Maryland Capital Enterprise expansion loan money be used for?

MCE start-up loan money can be used for almost anything that will help you start and operate your business. Each loan application will be evaluated on a case-by-case basis. The borrower will need to specify what the funds will be used for. Examples include but are not limited to:

  • Opening of another location
  • Machinery and equipment
  • Furniture and fixtures
  • Supplies, materials, and inventory
  • Working capital
  • Truck/car purchase for the business

Your business plan and cash-flow projections must demonstrate loan repayment capacity and the borrower needs to present enough collateral in order to qualify for MCE’s start-up loan. MCE can accept business assets, personal guarantees/co-signers, equipment, cars, trucks, trailers, real estate, or life insurance.

Loan Application Procedures

Before submitting the application you are required to schedule an appointment with our Loan Officer. The Loan Officer will discuss your paperwork with you, help you prepare the Loan Application Packet, and will then present it to the Loan Committee for approval.

Please note: for some people it may take almost a month or even two to collect all the required documentation. Allow yourself enough time to prepare the documents and find out from our Loan Officer in advance the due date for submission of your packet on the desired month.

If you experience difficulties in preparing your statements, cash-flow projections or other paperwork for your application, MCE can recommend experienced professionals, who assist you.

The decision about your loan will be made on the day of the Loan Committee meeting. Our Loan Officer will contact you at their earliest convenience after the meeting. Closing will take place 2-4 weeks after approval and after all liens and necessary title searches are performed. You will receive a written approval letter with an approximate loan settlement date.

How is the decision made? The most common reasons for the denial are:

  • Insufficient cash flow to support debt service
  • Insufficient collateral
  • Debt-to-equity ratio is too high
  • Excessive leverage
  • Poor credit history
  • Inadequate/poor quality financial statements and supporting information
  • Lack of personal guarantees or inadequate guarantees

Keep in mind, it’s our mission to work with those who have sound ideas for starting or expanding a small business; those who will promote self-sufficiency and create jobs to help others become self-sufficient, productive members of our community.

However, sometimes we are unable to approve all loans presented. We will try to make every effort to give you alternate resources and work with you if you wish to proceed in such a manner.