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Small Business Loans in Maryland (2020 Update)
In Maryland alone, there are almost 500,000 small businesses. Roughly 350,000 of these companies run without the help of staff or employees. The rising number of entrepreneurship in the state is astounding, since thousands of new businesses are created each year. One in every two small businesses will require a loan at some point in their journey.
When to Take Out a Loan and Why?
The best time for your company to take out a loan is when you need a large lump sum of cash for business expenditures. Some use their loan money to improve marketing and advertising to bring in new clients. Others use their loan-obtained money to expand on their shops and properties, improving services for customers. When taking out a small business loan, you need a clear goal in mind so that the money benefits you. Many entrepreneurs apply for loans, receive the money and then spend it on frivolous things that aren’t advantageous to their companies. Before spending any money, have a solid objective for your business and know where every penny of that loan is going to be spent.
How to Apply for a Loan
Small business loan application is different from personal loans. Your company should ideally be over two years old to improve the chances of loan approval. Most lenders look at brand new businesses as a liability factor and won’t give out loans to these companies. If your company is older and well-established, you should have no problem taking out a loan. You’ll need documentation of sales and expenditures associated with your company. This lets the lender know if you’ll have the funds to pay back the loan. Loan approval can take anywhere from one week to several months. Most loans are approved within 45 days and funds will be deposited into your account upon approval.
Repayment and Term Length
The amount you’ll pay back on the loan is dependent upon a variety of factors, such as interest rate and term length. Small business loans can be approved for anywhere from $5,000 to millions of dollars, and you’ll be responsible for paying every penny of that loan back. This means that if you take out a loan and your business fails, you’ll still be responsible for repayment as an individual. It is important to only take out a loan you know you’ll be able to afford and pay back. Interest rates for small business loans are currently set at 5.5 percent to 8.5 percent. The interest will be added to your monthly loan payments.
Lenders Available in Maryland
Here are a list of small business lenders in the state of Maryland:
Provident State Bank
This bank is one of the most popular in Maryland, which is apparent as it has a customer satisfaction rating of 92.5. Their main headquarters can be found in Preston.
Community Bank of Tri-County
To date, Community Bank has given out over 250,000 small business loans to entrepreneurs throughout the state. They work with high-risk companies in a niche market.
Hebron Savings Bank
Hebron Savings Bank has lent out roughly 100,000 loans and has a satisfaction rating of 85 percent. People trust this bank because of their superior customer service department.
Top Cities in Maryland and Their Lenders
Maryland is another one of the nation’s famous Northeastern states. Unlike many of the northernmost state’s in the country, Maryland has a very large city attached to it – Baltimore. While Maryland has a decent population, the state itself is very small in size. This means that there are a number of densely populated cities, with not many smaller cities to choose from. If you’re thinking of starting a business in the area, you’re best to look into the larger cities in the state. Maryland is one of the original 13 colonies – it has a long history in the United States.
In this article, we’ll take a look at the top business cities that Maryland has to offer. We’ll also examine the best business lenders in each of these cities.
Baltimore is by far the largest city in the state of Maryland – it has over 500,000 full-time residents. The city has played a major role in American manufacturing and steel producing. As the region’s largest port, Baltimore has served as an economic hub for the area. The city had a reputation for crime in past decades, but has become an increasingly popular place to move for small business owners. Below are the top small business lenders in Baltimore:
1st Mariner Bank
Our top pick in Baltimore, Maryland for business banking is the 1st Mariner Bank. They’re a regional lender in the Northeast of the country. They have a great reputation in the various cities they work within. They’re extremely business friendly. Make sure to check out their other business lending products as well – they offer lines of credit, term loans, and plenty of other financing options.
Hamilton Bank is our other favorite lender in the area. They’re a community bank that provides a range of lending products to businesses. For such a small bank, they happen to have some great online platforms that help you get the most out of your funding experience.
Silver Spring, Maryland
Silver Spring is another major city in Maryland – the area is known for its role in the media and biotechnology industries. It’s a great place to start a business if you’re in either of these industries. Below are the top lenders in Silver Spring:
EagleBank is our top pick for the Silver Spring area. They’re one of the most customer-friendly banks in the state. If you’re looking for a business lender that prioritizes custom solutions and customer service, we recommend that you use EagleBank. They can also provide you with business banking services.
Vantage Finance and Loans
Vantage Finance and Loans provide both consumer and business loans to their client base. They’re a great option for anyone who is looking to work with a lender that can get you capital quickly. They specialize in fast funding!
Frederick is another Maryland city with a diverse economy. Healthcare, education, and insurance all have a major role in the local industry. Below is our favorite lender in the Frederick area:
Frederick County Bank
Our top pick for Frederick is the Frederick County Bank. They’re a business friendly local lender that has worked hard to help many small business owners in the area. They have a reputation for being customer and community focused. You can head into a local branch to speak to one of their loan specialists. They provide loans and lines of credit for their customers.
If you’re looking to work in technology, Gaithersburg is a great spot to be in Maryland. There are plenty of large technology companies operating in the area. The cost of living is also quite reasonable. Our favorite small business lender in Gaithersburg is listed below:
Nymeo Credit Union
Nymeo Credit Union has grown into a large lender in the Gaithersburg region. They’ve managed to establish themselves as experts in the local industry. They also have some of the best rates in the industry. If you’re looking for a business lender that is affordable, this is the best option in Gaithersburg.
Rockville is another affordable city in the state of Maryland. It’s well known for being home to plenty of large software and data science companies. Our favorite lender in Rockville is listed below:
Abel Commercial Funding
Abel Commercial Funding is a lender in Rockville that deals exclusively with small business owners. They aim to create partnerships that last long into the future. If you want to work with a small lender that understands business in Rockville, this is definitely your best choice.
Bowie is the smallest city on our list of recommended cities in Maryland. This is a top place to head to if you’re looking to start a retail business. Below is our favorite lender in the area:
Bowie may be a small city, but they also have a large national lender to work with if you’re a small business owner in the area. If you’re thinking of starting a new business, we definitely recommend you work with BB&T. They have national experience and the ability to lend businesses of all size. They have a local branch in Bowie.
Remember, some of these companies or banks are very specialized and may only handle SBA loans or a business line of credit. Ask them about any special programs for minorities or women. Also ask for information about business grants for startups if that interest you. If you bad credit don’t worry as there still may be other alternative lenders willing to work with you.
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