Anne ArundelEconomic Development Corporation

LOANS TO SMALL BUSINESSES• $25,000 - $500,000

• Priced at below current market interest rates

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

• Eligible entities include start-ups and existing businesses

• 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

• Settlement facilitated with the assistance of outside attorneys

• Post-closing: Servicing, loan monitoring, billing, and collections administered by AAEDC financial services staff

Loan Requirements• Personal credit (640 or above)

• Historical Debt Service Coverage Ratio (DSCR) of 1.00x or projections with assumptions showing 1.00x DSCR

• Collateral required when available

• All owners over 20% must personally guaranty the loan

• Life insurance on owner/guarantor where no valid succession plan is in place

• Minimum equity injection of 10% for start-up businesses

• Business plan required for start-up businesses

LOANS TO TECHNOLOGY BUSINESSES• Loans to promising early stage companies to help attract follow-on funding from venture capital firms, angel investors and other sources

• Loans of $100,000 to $250,000

• Funds from The VOLT Fund program are a long term loan with no principal or interest payments until the company experiences a liquidity event, preferably within 24 months of the loan closing. A liquidity event is defined as an acquisition, investment from venture capital/angel investors or private equity firms, or an initial public offering (IPO).

• Within 60 days of the liquidity event the company will pay a one-time ten percent (10%) earnest payment to The VOLT Fund and then, based on company cash flow, the company will make monthly principal payments for 36-60 months.

Eligibility Criteria for Technology Businesses – Ideal applicants will meet most or all of the following criteria:• High potential early stage small, minority and women-owned technology company with clear path to follow-on funding, particularly

engaged in cybersecurity, clean energy, life sciences or Health IT

• Affiliated with a business incubator that is a member of the Maryland Business Incubation Association (MBIA) is preferred, but not mandatory

• Defendable intellectual property with clear ownership or licensing arrangement

• Team led by an experienced entrepreneur or demonstrates willingness to acquire needed management talent

• Recognizable $20 million addressable market

• Cash flow break-even is reached within 24 months

The VOLT FundSmall, Minority, Veteran and Women-Owned Business Loan Program

80% Loans to Small Businesses

20% Loans Convertible to equity in promising technology related business

Updated -June 30, 2016 M:\Desktop Publishing\Projects\AAEDC Brochures\Feb 07 Brochure\VLT Brochure

A loan program managed by the Anne Arundel Economic Development Corporation for the Maryland Department of Commerce2660 Riva Road, Suite 200, Annapolis, MD 21401 • t (410) 222 7410 • f (410) 222 7415 • www.aaedc.org

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THE VOLT FUND - BUSINESS LOAN PROGRAM TARGET AREASHalf of the fund’s investment will be targeted to small, minority and women owned businesses located within a ten mile radius of Maryland’s five existing casinos, Maryland Live in Anne Arundel County, Hollywood Park in Cecil County, Ocean Downs in Worcester County, Rockey Gap Casino in Allegany County, and Horseshoe Casino in Baltimore City. The other half will be available to small businesses throughout Maryland.

Meeting business needs today

Maryland Live Target Program Area

Horseshoe Casino Target Program AreaNational Harbor Target Program Area

Future Area

Ocean City Target Program Area

Rocky Gap Casino Target Program Area

Perryville Target Program Area

The VOLT Fund - Business Loan Program Target Areas of Maryland

THE VOLT FUND PARTNERS• Anne Arundel Economic Development Corporation

• Chesapeake Innovation Center

• bwtech@UMBC

• Worcester County Economic Development

PROGRAM CONTACTSStephen Primosch Vice President, Financial Services Anne Arundel Economic Development Corporation (410) 222-7410 • sprimosch@aaedc.org