Hagerstown Revolving Loan Fund (HRLF) Program

Staff contacts: Jonathan Kerns, JKerns@hagerstownmd.org

Eligible Applicants:


Small business or developer organized as a proprietorship, partnership, limited liability company or a corporation whose business sales are less than five million dollars ($5,000,000) annually for each of the last two (2) years.

Eligible Activities:


Loan funds may be used for activities, including but not limited to:
  • Growth and Expansion
  • Rehabilitation
  • Code Compliance
  • Employee Recruitment and Retention
  • Façade Enhancement

Eligible Costs:


May include the following:
  • Land improvements, including but not limited to: grading, new streets or street improvements, parking lots, utilities, and landscaping. • Purchase or renovation of building.
  • Purchase machinery or equipment defined to have a useful life of at least five (5) years. • Building construction.
  • Leasehold improvements provided the lease is equal to or greater than the term of the loan and the City secures a lien on the land or building, and improvements.
  • Micro-enterprise activities defined as a commercial enterprise that has five (5) or fewer employees, one or more of whom owns the enterprise.
  • Working Capital

Ineligible Costs:


Include but are not limited to:
  • Management Fees
  • Financing Costs
  • Franchise Fees
  • Debt Repayment or Debt Consolidation
  • Moving Costs
  • Refinancing

Ineligible Activities:


Funds may not be used for:
  • Non-profit Institutions
  • Gambling Organizations
  • Lending or Investment Organizations
  • Land Speculation
  • Any activity deemed illegal by federal, state or local law or ordinance

Terms and Conditions:


  • Maximum loan amount is $200,000 or 80% of total project cost, whichever is less.
  • Maximum loan amount for working capital is $30,000.
  • Minimum loan amount is $10,000.00.
  • Additionally, micro-enterprise loans are available up to 5,000.
  • The interest rate shall be a fixed-rate established at LIBOR plus 1%, but shall not be less than 3%.
  • Term may not exceed 7 years. Term may not exceed 5 years for working capital loans.
  • For each $35,000 or fraction thereof borrowed, one full-time job must be created or retained within 2 years from the loan closing.
  • Business must pay each employee total compensation including benefits not mandated by law equal to at least 110% of federal poverty level for a family of four.
  • Business must agree to list any vacant positions with Maryland DLLR job services.
  • Minimum of 20% cash equity investment of total project costs. For new restaurants or restaurants open 3 years or less, minimum of 40% cash equity investment of total project costs.
  • Repayment of loan shall begin within one month of completion of construction or taking possession of machinery or equipment purchased.
Please be advised, a credit check is required along with a non-refundable application fee based on the requested loan amount.

Complete program guidelines apply.


Click on the following link for the Program Guidelines.
Click on the following link for the Application Form.
Click on the following link for the Personal Financial Statement Form.