The need and decision to expand your business is a major milestone in business ownership. MCE can assist you in successfully navigating your expansion. Our goal is to help you succeed.

Currently we can assist you with a direct small business loan for any amount between $5000 and $25000. We can also package larger loans up to $50,000 with the cooperation of one or more of our partners. You must be in business for at least 2 years to qualify and have 2 years of tax returns to present to the committee.

Who is eligible?

Any for-profit business with 10 or less employees, which have tried to receive a loan through a traditional lender or a bank and is located in Baltimore City and Baltimore and Anne Arundel counties. Must have the ability to create full-time, part-time employment for the community residents. Must be a U.S. citizen or legal alien, demonstrate ability to repay loan and have reasonable credit history and payment records.

Terms and Fees:

• Loans for any amount from $5,000 to $50,000
• Up to 6 years
• Interest rate to be determined upon approval, but not to exceed 12%
• 1% closing fee of the loan amount
• $250 - $1,000 Legal Reserve Fee
• $75 Non-refundable Application Fee
• $6 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, corporation, or LLCs

Use our Payment Calculator to determine your monthly payment.

What can MCE expansion loan money be used for?

MCE start up loan money can be used for almost anything that will help you 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 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 Business Counselor in advance the due date for submission of your Packet on the desired month. Your Loan Application Packet should include the following:

• Request for Services Form (download) or click here to fill it out online
• MCE Loan application
• Personal Information Supplement
• Detailed Business Plan
• Cash Flow Projections for 1 year (12 consecutive months)
• Personal tax returns (3 years)
• Explanation of Credit – discuss bankruptcies, late payments, judgments
• Certificate of Good Standing
• Application fee – money order or cash only
• Other supporting documents requested by Loan Officer.

If you experience difficulties in preparing your statements, cash-flow projections or other paperwork for your application, MCE can recommend experienced professionals, who can do it for you. Once your packet is ready and reviewed by our Loan Officer, it will be presented to Loan Committee for approval. MCE’s Loan Committee meetings are held once a month and the Application Packet must be submitted two weeks prior to the meeting date. Please, refer to the Calendar to find out the dates of Loan Committee meetings. All applications received after the deadline will be presented to the Loan Committee in the following month.

The decision about your loan will be made on the day of the Loan Committee meeting. Our Loan Officer will contact you at his earliest convenience after the meeting is over. Be patient, there is no set time at which the meeting will end and in some months it may go on for more than a few hours, depending on how many loans have been presented to the Committee. 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 the decision is made?

The most common reasons for the denial are:

• Insufficient cash flow to support debt service
• Insufficient collateral
• Debt-to-equity ratio too high
• Excessive leverage
• Credit history too damaged
• 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.