VOLT Growth Fund
The VOLT Growth Fund (VGF) aims to help Maryland based high growth innovative and technology product companies implement a go-to-market strategy and accelerate sales. The program has flexible underwriting standards and payment terms to allow a company to grow its revenue and workforce as well as facilitate future equity investment.
Terms
- Loan of up to $100,000
- Term of up to 10 years
- Interest recollection amount of 10% due at the time of event of recapture
- Event of recapture is defined as when the company raises 5x the amount of the original loan in equity investment or 5 years whichever is sooner
- After event of recapture, loan to be repaid over 5 years in equal principal monthly payments
- No interest or other closing costs
- Collateral will be a blanket lien UCC filing assets (AAEDC may release or subordinate the UCC filing in order to allow follow on investment or debt to help grow the company
- Personal guaranty of all active owners over 20%
- Spousal guaranty and guarantys from investors not active in operations may not be required if all other underwriting criteria are met
Underwriting
- Company should have strong management team in place with a proven track record of success
- The product must be created/completed and ready to bring to market
- AAEDC will evaluate amount of previous and prospective future equity and debt investment in the company when determining viability of success
- Pre-revenue and minimal revenue companies may apply
- Applicant to provide realistic financial projections showing cash flow positive within 12 months
- Borrower is required to provide a business plan or investor deck showing pathway to growth and profitability
Listen to Adam Ashley, founder of Plus Up, LLC and the first recipient of a VOLT Growth Fund (VGF) loan, discuss how it will help him grow the market for Goodtimer, an electronic educational toy that encourages kids to form healthy habits using positive reinforcement:
Read our press release on awarding the first VOLT Growth Fund loan to Adam here: