Business Expansion Deferred Loan Program (BEDL)

Business Expansion Deferred Loan Program (BEDL) is sponsored by Allegany County. The BEDL program provides forgivable loans to small for-profit businesses looking to expand or establish themselves in Allegany County. Up to 50% of the loan can be forgiven based on performance metrics such as job creation or increased export capacity.

Business Expansion Deferred Loan Program Empowering local business to make the next step in their growth Business Expansion Deferred Loan Program The Business Expansion Deferred Loan Program (BEDL) is a dedicated funding resource for small businesses that are ready to expand their footprint in Allegany County.

As a forgivable loan, the BEDL seeks to help new companies become established in Allegany County or to help existing companies grow in order to expand employment opportunities, export capacity or placemaking. Eligible applicants can qualify for up to $50,000 as a low-interest loan.

Recipients have the opportunity to have up to half of the loan forgiven, based on predefined performance metrics, such as job creation and increase in export capacity. If you are interested in applying to the program, please carefully read the details below, and click the contact form at the end of the page to let our team know you would like to be considered.

What to know before applying Program Eligibility and Details Applicants must be for-profit, tax-paying entities that are in good standing with Allegany County and the State of Maryland. Any applicant that is not in good standing with the County or State of Maryland is ineligible for funding.

Applicants may only apply via a formal invitation from a qualified member of Allegany County Economic and Community Development (ECD), after having met the pre-established criteria. Grant applications are accepted on a rolling basis, and subject to funding availability.

Businesses must have less than fifteen (15) full-time employees and be physically present in Allegany County through the ownership or long-term commercial lease of a physical asset. Those businesses that are operating out of personal residencies can also apply, as long as they intend to eventually expand to a commercial location, as part of their narrative.

Business must clearly illustrate the ability to offer a tangible product or service. This can be done through patents filed, existing sales figures, taxes paid, assets owned or through the availability of capital or financing. Eligible uses of funding include any costs that expand the productive capacity of the business that lead to long term, sustainable growth.

This includes tangible assets such as equipment and furniture. Ineligible use of the funds include staff costs, salaries, the acquisition or capital improvements of an existing building, or the construction of a new building. Projects that have already received funding from the previous County funding program, Invest Allegany, are ineligible for additional funding.

Loan Terms and Incentives Loan Details and Disbursement Loans range from a minimum of $10,000 to a maximum of $50,000. Loans valued at $10,000 or under do not require a match and shall be granted based on need and the previously stated criteria. Loans over $40,000 will require a 1:1 match in funding.

Loans that meet the criteria set forth in each application may qualify for partial forgiveness up to 50% of the total loan amount. Conditions vary from applicant to applicant, as these conditions are defined by the applicant through the description of use of funds, and the accompanying narrative (e.g. “3 new employees in two years”) Payments may be deferred for up to a period of 6 (six) months after loan draw.

Terms shall be defined by ECD, and each loan must be approved by the Board of County Commissioners (“The Commissioners”) during a public board meeting. Terms shall be more “favorable” (i.e. lower interest rates) than those sourced from a traditional lender. All applications will be reviewed by ECD before any approval will be granted or inferred.

A review Committee will make the final recommendation and submit recommendations to The Commissioners for grant approval. Clearly defined project scoring criteria will be given to applicants, as they are invited to apply. Funds shall be paid directly by Allegany County, following the signing of an agreement between both Applicant and County.

How Applications will be judged Project Definition and Scope A project is defined through a narrative indication of the use of funds to further expand and grow the business in order to grow new employment, export capacity or placemaking in Allegany County.

Separate projects can be co-located on the same physical footprint, assuming that there is sufficient narrative distinction between them ( i.e. an argument can be made that, while in the same building, the projects do not affect one another). The narrative scope, if approved by ECD and The Commissioners, will be used as the metrics to determine whether or not a loan qualifies for forgiveness.

What's needed for your application Application Requirements and Terms All business expansion projects shall comply with federal, state, and local codes, laws, and ordinances. The BEDL will require a developed business plan outlining the expansion and major components of the project that was either developed in conjunction with or approved by the local Small Business Development Center Representative.

The business plan must include a line item budget with estimates from reputable vendors. As stated previously, all applicants must provide proof of capacity, through filed patents, existing sales figures, taxes paid, owned assets, and / or the availability of capital or financing.

All funds must be appropriated for the expansion within 12 months after receiving the conditional loan approval and must be spent by 24 months, in order to qualify for forgiveness. Allegany County reserves the right to dictate the terms of grant disbursement to applicants, based on project details, cost and scope.

Applicants shall agree that their project will be made public and may be used for promotional purposes of Allegany County Government. Applying for the grant does not mean application will be awarded. Required Supporting Documents The following documents will be required once the application process opens.

Please prepare in gathering the necessary documents in the interim to prepare for applying. Fully completed application Developed business plan with letter from SBDC Rep.

confirming approval Line Budget Workbook (template to provided) with accompanying vendor quotes Proof of capacity based on above criteria Applications will be reviewed by a selection committee and will be ranked by the following criteria: Soundness of business plan Impact on local placemaking Potential for positive job creation, product export and / or tourism attraction Apply to the BEDL Program If you are ready to expand your business, then click the button below to reach out to someone from our team.

Starting a conversation is the first step, along with an introduction to the Small Business Development Center.