The U.S. Small Business Administration (SBA) provides capital, counseling, and other resources for small business owners in Maryland and throughout the country. Utilizing in-person and online resources positions entrepreneurs for success when starting and operating small businesses. We will discuss Maryland SBA loan resources and support available in the state, including how to obtain financing for your small business.
Types of SBA Loans
The SBA works with local lenders to provide capital to small business owners. Business owners can choose from SBA 7(a), 504, and microloans based on their needs and intentions for the funding.
As the SBA’s primary loan product, most business owners select 7(a) loans, which consist of the following:
- Standard 7(a)
- Loans from $500,001-$5 million
- 7(a) Small
- Maximum loan amount of $500,000
- SBA Express
- Maximum loan amount of $500,000
- Export Express
- Maximum loan amount of $500,000
- Export Working Capital
- Maximum loan amount of $5 million
- International Trade
- Maximum loan amount of $500,000
Borrowers may use the funds from SBA 7(a) loans for various business expenses, including acquiring and refinancing real estate, refinancing debt, purchasing supplies, and installing equipment.
Business owners who want to purchase or improve fixed assets, such as new facilities and machinery, can obtain SBA 504 loans. Qualified applicants may borrow up to $5 million with this loan product.
Microloans are available for small business owners who borrow up to $50,000 to expand and grow their operations. These loans can be used for working capital, inventory, supplies, equipment, and other business purposes.
While the SBA guarantees these loans, it does not provide direct funding. Instead, small business owners must apply for SBA loans through a financial institution. Business owners can inquire with their current bank, visit an SBA district office, or use the Lender Match tool on the SBA’s website to find a lending partner.
SBA Support Services
The SBA has support programs available to small business owners in Maryland. These programs provide resources and tools to help small businesses grow before or after obtaining financing.
SBA District Offices
Business owners pursuing financing can visit an SBA district office for resources. SBA district offices connect business owners with lenders and provide additional support, such as business counseling.
Maryland small business owners can access the Baltimore District Office. Interested parties must schedule an appointment since this office does not accept walk-ins.
SBA Learning Center
The SBA Learning Center provides free online training courses for entrepreneurs. Courses focus on planning and launching a business, managing day-to-day operations, marketing, expansion, and other business topics. Each course contains objectives for entrepreneurs to meet before moving on to the next class.
Ascent Virtual Learning Platform
The SBA launched the Ascent virtual learning platform in 2021. This free platform is geared toward female entrepreneurs and includes discussion guides, videos, infographics, and fireside chats. The fireside chats contain insights from experts experienced in starting and operating successful small businesses.
Small Business Development Centers (SBDCs)
SBDCs provide essential resources to help start-ups and established businesses succeed. Business owners receive one-on-one counseling and training in multiple areas, including accessing capital and business planning and strategy. Entrepreneurs can also access topics covering personal administration, financial management, and technology.
The Maryland Small Business Development Center serves the Northern Region, including Frederick County. It maintains an online Events Calendar for its upcoming training programs. Interested entrepreneurs and business owners can register for events online.
SCORE Business Mentors
Entrepreneurs with mentors are twice as likely to remain in business after five years compared to non-mentored entrepreneurs. The SBA connects entrepreneurs to established mentors through the SCORE Business Mentors program. The program is free, and mentees can meet with mentors via video, email, and telephone.
SCORE Mid-Maryland serves small businesses in Frederick and surrounding counties. Business owners enter their zip codes to find nearby mentors to connect with for the long term. SCORE Mid-Maryland also offers webinars and other events throughout the year.
Veterans Business Outreach Centers (VBOC)
The SBA offers personalized assistance to service members, veterans, and their spouses through Veterans Business Outreach Centers. Eligible entrepreneurs can access mentors, training, networking, and other services free of charge at these centers.
Maryland entrepreneurs can access these resources at the Mid-Atlantic VBOC located at the University of Maryland. The Mid-Atlantic VBOC offers a variety of tools, including the Boots to Business education and training program. This two-day training program assists service members when transitioning to entrepreneurship.
Women’s Business Centers
Women’s Business Centers are available to support female entrepreneurs when launching and operating small businesses. Female entrepreneurs can visit the Maryland Women’s Business Center for peer support, counseling, workshops, and other training. The center also assists women interested in securing capital to open or maintain their businesses.
Secure a Maryland SBA Loan Through Woodsboro Bank
Woodsboro Bank provides resources and support to small business owners seeking financing via SBA loans. As a community bank, our commercial lending team provides personalized service to each customer we serve. Contact Woodsboro Bank today to explore SBA loans and determine your eligibility.
Sources:
https://www.sba.gov/partners/lenders/7a-loan-program/types-7a-loans
https://catran.sba.gov/lendermatch/form/contact.cfm
https://www.sba.gov/district/baltimore
https://www.sba.gov/blog/mentoring-missing-link-small-business-growth-survival
https://midatlanticvboc.com/
https://www.sba.gov/local-assistance
https://midatlanticvboc.com/resources/