Gap Financing Available for Sustainable Communities

The State of Maryland developed a program in 2010 with the Sustainable Communities Act, where public and private investments and partnerships help develop healthy economies with growth practices that conserve resources and appreciate historical and cultural resources. Since that time, the State has designated four Sustainable Communities in Frederick County: City of Brunswick, Town of Emmitsburg, Town of Middletown and the Town of Thurmont.

The State of Maryland's Neighborhood BusinessWork's loan progr​am provi​des gap financing, i.e. subordinate financing, to new or expanding small businesses and nonprofit organizations in Sustainable Communities throughout the State.

Mixed-use projects combining residential and ​commercial uses in the same ​building
New construction or rehabilitation​​
Machinery and equipment
Certain other costs associated with opening or expanding a small business
Real estate acquisition
Service providers

Project must be located in a Sustainable Community
Project viability and potential impact on the neighborhood
First floor business or retail space use that generates street level activity in mixed use projects
Improvements to a vacant or under-utilized building or site
Readiness to proceed
Cash flow and collateral
Priority is given to projects that strengthen neighborhood commercial districts and are part of a greater revitalization strategy. The following types of projects and activities will not be considered for financing:
Residential or transient living facilities (other than mixed-use projects described in eligible projects section)
Facilities such as community halls, fire stations, hospitals, colleges or universities
Adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, massage parlors, pawn shops, tanning salons, or tattoo parlors

Loan amounts up to $500,000 or 50% of the total project costs, whichever is less
Interest rate is based on an underwriting analysis
Target loan term is five to 15 years, depending on use and loan amount
Minimum five percent applicant cash contribution is required (based on total new project cost)
Personal guarantees and collateral are required
No prepayment penalties

To apply, please visit