Welcome to the EDI Fund program. We are excited about this program and hope that it will make a difference for your business. Here are some helpful things you need to know before applying. The application process is as easy as 1, 2, 3. There are three helpful ways to apply;
- Downloading an Application from our website
- Filling out online application
- Picking one up from our office
Items Needed for Prequalification
- Application Fee
- Signed Application
- The sections below must be completed:
- Project Description (Section 13)
- Community Benefit Assessment (Section 18)
- Prince George’s County Employment (Section 19
- Personal financial statements of owners of 20% or more of the company
- Completed Confidentiality Agreement
- Current Credit Report (within the last 6 months)
- Business Plan, Executive Summary, Capability Statement
- Articles of Incorporation & Organization (if LLC)
- Disclosure of Interested Parties Form (K)
- Business Indebtedness Form (N)
- Summary of Collateral Form (O)
After initial review and determination that your application fits this program, these are some additional items that you will need to complete the process.
- Business Financial Statements: If available, CPA prepared balance sheets and income statements for the most recent three years with 3 year projections with two (2) year month-to-month projections, including detailed assumptions to support the projections. Also include interim statements no less than 45 days. Otherwise, federal tax returns.
- Cash Flow: Please include, as a part of the financial statements, a summary of cash flow covering prior year’s operations.
- Payroll, Sales, Corporate Taxes paid to the State of Maryland (past 3 years and projected for 3 years).
- Resume of Company Owners and Management Team.
- Schedule of related affiliated companies.
- Purchase Agreement or memorandum between the parties.
- Current balance sheet of business being acquired.
- Appraisal, or estimate of value, of seller’s real estate and equipment.
- T4506 IRS Form
Rates Total and Fees
A minimal application fee of 1% of the loan amount will be required after it has been determined that your application and project meet the basic requirements for this Fund. A business development specialist will let you know exactly the amount, but these are the up front costs you should expect to pay. A portion of the fee will be required up front and the balance of the 1% of the loan may be financed as part of your total loan amount.
Up Front Fee Structure for Loan Amounts
Up to $1,000,000: $2500
$1,000,000 and above: $5,000 with balance due at closing
Rates will be determined for those who qualify on a case by case basis, depending on credit and personal history. Generally interest rates will be set at competitive market rates or slightly lower where consistent with the statutory goals of the EDI Fund. The Prince George’s prime rate is 4%.
Apply Here Now!