VOLT Fund

Small and minority-owned, woman-owned, and Veteran-owned businesses in Maryland may be eligible for a loan through the VOLT Fund. Loans ranging from $25,000 to $500,000 may be used for purposes such as business and commercial real estate acquisition and expansion, lease-hold improvements, equipment, and working capital.

Anne Arundel Economic Development Corporation manages the VOLT Fund on behalf of the Maryland Department of Commerce. The department oversees the state’s Small, Minority and Women-Owned Business loan fund which is supported by 1.5 percent of video lottery terminal revenue from Maryland casinos.

Loans to Small Businesses

• Priced at or below current market interest rates
• 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

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Listen to Kendra Eden, founder of Sweet Eden Bakeshop, discuss how she felt while working with AAEDC to secure a VOLT Fund loan here:

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Listen to Elizabeth Elliott, owner of Himmel’s Landscape and Garden Center, discuss how a VOLT Fund loan allowed her to purchase the business – then quickly grow from 4 to 35 employees! – here:

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Click here to view and download the full VOLT Fund Brochure

Click here for the online application.