FSC First selected to serve as State of Maryland Video Lottery Terminal Fund Manager Print This Post

6 Jul 2016 | Under News | Posted by | 0 Comments

FSC First selected to serve as State of Maryland
Video Lottery Terminal Fund Manager

 Organization will take the lead on investing $2 million into eligible targeted businesses in the Prince George’s County

Largo, MDThe Prince George’s Financial Services Corporation, trading as “FSC First”, has been awarded a $2.0 Million allocation and contract by the Maryland Department of Commerce to serve as one of eight Video Lottery Terminal (VLT) Fund Managers in the State of Maryland. The contract will be for a five-year term, with one optional subsequent five-year renewal period.  The State of Maryland allocates 1.5% from the revenue proceeds of video lottery terminals at each of the video lottery facilities in the State of Maryland to provide investment capital or loans to eligible targeted businesses. FSC First was selected through a very competitive bid process to make investments and/or loans to eligible targeted businesses.

“This is a significant achievement for our organization and we are elated that the Department of Commerce deemed our proposal to be the most advantageous to the State,” said Shelly M. Gross Wade, President & CEO of FSC First. “The $2.0 Million allocation supports the FSC First corporate vision to diversify and expand the flexible funding options it provides to local, small, minority, and veteran-owned businesses with direct access to loans, investments and guarantees that support the start-up and growth of their successful ventures.”

According to President Gross-Wade, the FSC First program will be marketed as the Small Business FLEX Fund – denoting the organization’s emphasis on providing flexible funds to local entrepreneurs who will have special consideration and flexible payment terms. There are also companies in the local market who cannot qualify for any of the FSC First existing programs, but are worth the risk because of their sound business plan, proven operating principles and realistic growth potential.  These companies may need a more flexible repayment term or short-term cash flow. This program will also have a shorter review, approval and closing process.

“I want to congratulate Prince George’s County’s own FSC First for this well-deserved contract award to manage the State of Maryland’s VLT revenues,” said Prince George’s County Executive Rushern L. Baker, III. “Through the work we did in Prince George’s County to expand and enhance gaming in the State of Maryland, the citizens of the State will see more revenues and resources from the five gaming facilities, and even more additional revenues when MGM National Harbor comes on line soon.  It is critical that these funds are well monitored and invested with complete transparency.  I am confident that FSC First is the best firm in the state to conduct this business.”

The Fund Manager must allocate at least 50% of the Grant Funds it receives for use in the jurisdictions and communities surrounding the video lottery facilities. The Fiscal Year 2017 allocation is projected to be $24.2 Million. FSC First participation as a Fund Manager further illustrates the State’s commitment to insure that the funds are accessible for those businesses located in close proximity to the gaming facilities.  With the anticipated opening of the MGM Resort, FSC First is strategically located to provide access to businesses that may benefit from or be impacted by that facility. Of the eight Fund Managers authorized by the Board of Public Works, FSC First and the Meridian Management Group are the only two minority Fund Managers.

 

FSC First is a flexible, risk-tolerant alternative lender providing innovative and creative financing solutions and loan administration services that benefit small, minority, and emerging businesses. As a certified Community Development Financial Institution (CDFI), and U. S. Small Business Administration certified development corporation (CDC) and Community Advantage Lender, we operate bank-funded Revolving Loan Fund (RLF) to provide direct loans and credit enhancements between $50,000 and $250,000, microloans between $5,000 – $50,000; and we fund commercial real estate, machinery and equipment loans up to $5.5 Million with the SBA 504 and the Prince George’s County’s Economic Development Incentive (EDI) Fund programs.  As a CDFI and CDC, we are authorized to make loans throughout the State of Maryland.