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November 16, 2021

Small Business Loans in Maryland: How to Select a Loan

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Fora Financial

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Whether you’re a current small business owner or own a startup, pursuing small business loans in Maryland can help you launch or grow your venture.

How to Use Maryland Business Loans

Small business loans in Maryland can be used for numerous purposes. Before you apply for a loan program, determine how you'll use the funds. Several common uses include:
  • Everyday Operations: With a working capital loan, you can cover the cost of the operational expenses such as payroll, rent, and marketing.
  • Equipment: There’s a good chance you’ll need business equipment, such as computers for your office staff, an oven for your restaurant, or a bulldozer for construction jobs. You can pay for these expenses with a loan.
  • Inventory: If you’re in an industry like retail or food services, inventory will be required. A Maryland small business loan can allow you to buy it in bulk so you always have enough on-hand.
  • Startup Costs: Startup costs can range from business registration and insurance to marketing and human resources. A business loan may be just what you need to get your venture up and running.

4 Types of Small Business Loans in Maryland

Fortunately, there are many types of business financing to choose from. The right choice for you will depend on your business's industry and your financial goals.

1. Term Loans

Term loans are available at banks, credit unions, and alternative lenders. You receive a lump sum of money upfront and repay it via monthly payments plus interest. Terms can be anywhere from a few months to a few years or even longer.

2. SBA Loans

Small Business Administration (SBA) loans come with low interest rates and long repayment terms. They’re also guaranteed by the SBA, making them less risky for lenders and improving your chances of approval.

3. Real Estate Loans 

A real estate loan is ideal if you want to finance commercial property such as an office building or warehouse. They can provide you with the hundreds of thousands of dollars you may need to cover this high expense.

4. Equipment Loans

Equipment financing is intended to help you cover the cost of equipment. It’s a secured loan, meaning it uses your equipment as collateral. If you default, the lender may seize your equipment.

How to Apply for Small Business Loans in Maryland

Each lender and loan type has their own unique requirements and application process. SBA loans and term loans usually have more rigorous requirements than credit cards and invoice financing. Check out each lender’s website for more information on what you need to do to apply. Most lenders will outline the process online but if you can’t find it or are unsure, don’t hesitate to contact them directly.

Conclusion: Grow Your Venture with Small Business Loans in Maryland

While owning a business in the Old-Line State is exciting, it can be expensive. The good news is that there's no shortage of resources for business owners. Whether you’re preparing to launch your startup or grow your established organization, persistence, passion, and financial support may be the key to your success.