FSC FIRST PROGRAMS

FSC First provides access to financing to small and minority businesses through 5 distinct loan products. The loans are a product of public-private partnerships between a consortium of participating banks, Prince George’s County, the State of Maryland and FSC First.

SMALL BUSINESS GROWTH FUND (SBGF)

The Small Business Growth Fund (SBGF) is a public-private revolving loan fund targeted towards smaller, established businesses (at least 3 – 5 years of operating history). This may be used towards smaller real estate acquisitions, leasehold improvements, equipment purchases, working capital expenditures, and inventory and human capital increases for the purpose of expanding established businesses.

Program Details

The Small Business Growth Fund (SBGF) is available to established businesses with at least 3-5 years of profitable operating history.  This program is designed to assist emerging growth companies in response to access to new markets and expansion challenges.

This program is designed for qualified businesses seeking financing for general working capital, leasehold improvements, inventory, equipment (not rolling stock) purchases, and human capital increases for the purpose of expanding their already-established business.

The loan proceeds can be combined with and subordinated to traditional bank financing. FSC First will take a junior lien position on pledged assets to secure the loan. However, the repayment of the loan must be based upon the applicant’s demonstrated ability to generate sufficient cash flow to cover the debt service or loan repayment.

In addition, FSC First requires unlimited corporate guarantees as well as personal guarantees from all individuals who own 20% or greater ownership interest in the business seeking financing.

FSC First may require controlled disbursements of loan proceeds.  In other words, the loan proceeds will be disbursed through joint payee checks to the vendor and borrower.

Typically, in select circumstances, financing is provided to start-up businesses on a case-by-case basis.

  • Collateral: Business and Personal Assets
  • Personal Guarantees required
  • 10% cash down payment required for existing firms, and 20% cash required for start ups
  • Prince George’s County-based businesses ONLY

Program Snapshot

Loans
$25,000 – $250,000 ($100,000 maximum for start-ups)

Loan Term
Up to 10 years

Interest Rate
Wall Street Journal Prime Rate plus up to 6%

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