Video Lottery Terminal Fund (VLT)
Providing funds to assist small, minority, women, and veteran owned businesses.
Video Lottery Terminal Fund (VLT)
The Maryland Department of Commerce’s Video Lottery Terminal Fund (VLT) uses proceeds from video lottery terminals (slots) generated by Maryland’s six casinos to assist small, minority, and women owned businesses. At least 50% of VLT allocations will be provided to qualifying businesses in targeted areas surrounding Maryland’s six casinos: Live! Casino Hotel Maryland in Anne Arundel County; Hollywood Casino Perryville in Cecil County; Rocky Gap Casino, Resort & Golf in Allegany County; Ocean Downs Casino in Worcester County; Horseshoe Casino Baltimore in Baltimore City; and MGM National Harbor Hotel & Casino in Prince George’s County. Remaining funds are available to qualifying businesses throughout the state.
Allocations may be used for business acquisition and expansion, owner occupied commercial real estate, lease-hold improvements, equipment purchases, startup costs, working capital, professional/technical assistance, and refinancing of existing debt under certain circumstances. The Maryland Department of Commerce has a team of experienced Fund Managers to help businesses gain access to VLT capital.
Levonye Professionals
Cosmetologist Yalmikia Edmonds founded Levonye Professionals in Glen Burnie to help clients dealing with hair loss. With demand for her services high, Edmonds searched online for local business assistance resources and found the Anne Arundel Economic Development Corporation (AAEDC), its business accelerator, the Inclusive Ventures Program (IVP), and financing programs including the VOLT Fund. Edmonds completed IVP and applied for and received $50K as the first recipient of AAEDC’s VOLT Microloan which is available to small, minority, woman, and veteran business owners who have graduated from a business accelerator program like IVP but are unable to access traditional funding.
“It’s hard to believe how much has changed for my business since I first heard of AAEDC,” said Edmonds. “I’m excited to be putting what I learned from IVP and the capital that I was able to access through the VOLT Microloan program to work – increasing my revenue, creating jobs, and taking my business to the next level.”
Xcision Medical Systems LLC
Xcision Medical Systems, LLC, a woman-and minority-owned medical technology company developing advanced stereotactic radiotherapy solutions, received a $500K loan through the Howard County Economic Development Authority’s Catalyst Fund. Those funds support Xcision’s mission to extend the benefits of radiation oncology to more patients and enable precision-noninvasive treatments that allow patients to return to living fuller lives more quickly with less discomfort after receiving a cancer diagnosis.
“Xcision Medical Systems, LLC. has always been in Howard County since its founding in 2006. Among other support from the county, the Catalyst Loan enabled us to expand into international markets and increase sales, allowing our unique non-invasive radiotherapy to benefit more women suffering from breast cancer”.
-Cedric Yu
The Dog Company
With the motto, “Your dog’s second best friend,” Marissa Petrack opened The Dog Company in November 2018, providing dog daycare, boarding, and training in Fruitland. With a long waitlist for her services, Petrack sought and received a VLT loan from Maryland Capital Enterprise Inc. and set about expanding. The Dog Company opened a second building and purchased a giant, dogfriendly Sprinter Van. The Dog Company now cares for 32 dogs a day through its daycare facility, another dozen dogs in its day training program, and runs a weekly adventure day for 20 dogs featuring trips to local parks, trails, dog-friendly businesses, and even the beach thanks in part to VLT funding.
Atlantic Control Technologies Inc.
In January of 2023, Atlantic Control Technologies Inc., a fast-growing small business in the highend custom home market, received a $500K Maryland Casino Business Investment Fund (MCBIF) loan from Meridian Management Group Inc. The company, which focuses on installing audio visual, lighting, and electronic shade systems as well as home networks and home automation, utilized the funding to assist with leasehold improvements and working capital allowing Atlantic to retain 21 existing employees while also creating two new jobs.
Fund Manager
Anne Arundel County Economic Development Corporation
Stephen Primosch, Vice President Financial Services 2660 Riva Road, Suite 200 Annapolis, MD 21401 410-222-7410
Baltimore Development Corporation
Jeffrey P. Pillas, Vice President & CFO 36 S. Charles Street, Suite 2100 Baltimore, MD 21201 410-837-9305
Baltimore County Economic Development
Stanley Jacobs, Chief Lending Officer c/o Department of Economic and Workforce Development 305 Washington Avenue, Suite 400 Towson, MD. 21204 410-887-8000
FSC First
Dawn R. Medley, Vice President Business Finance Programs 1801 McCormick Drive Suite 300 Largo, MD 20774 301-883-6900
Howard County Economic Development Authority
Darshni Patel, MPA, Director Business Finance Programs 6751 Columbia Gateway Drive, Suite 500 Columbia, MD 21046 (410) 313-6512
Maryland Capital Enterprise
Maurice Ames, Executive Director 314 Civic Avenue Salisbury, MD 21804 410-546-1900
Meridian Management Group
Tim Smoot, Chief Investment Officer 826 E. Baltimore St. Baltimore, MD 21202 410-333-4270
Montgomery County Economic Development Corporation
Laurie Babb, Director Economic Development 1801 Rockville Pike, Suite 320 Rockville, MD 20852 240-641-6704
Tri-County Council for Western Maryland
Chris Funk Business Development Loan Officer 11 S. Lee Street Cumberland, MD 21502 cfunk@tccwmd.org 301-689-1300 Fund Name
Loan Requirements
Loans between $25,000 and $500,000, interest rate between 4%-7%. Personal credit 640 or above, historical/projected debt service coverage of 1.00x. Collateral required when available, and personal guaranty of owners over 20%. A minimum 10% equity injection and business plan required for startup businesses. SBA classified as a small business. Other requirements may apply.
www.aaedc.org/business/financing-and-tax-credits/volt-fund/
Lottery
Fund VLT Small Business FLEX Fund
Loans between $30,000 and $300,000, maximum 10-year term. Personal credit score of 680 or higher, collateral required, personal guaranty. SBA classified as a small business. Other requirements may apply.
www.baltimoredevelopment.com/doing-business/doing-business
Loans between $50,000 and $250,000, maximum 20-year term, collateral required, personal guaranty, SBA classified as a small business. Other requirements may apply.
www.baltimoredevelopment.com/doing-business/doing-business
Loans up to $250,000, flexible interest rate determined after full underwriting, maximum 10-year loan term. Collateral includes business and personal assets, personal guaranties required, geographical proximity to casinos. SBA classified as a small business. Other requirements may apply.
www.howardcountyeda.org/business-resources/financing-options/ catalyst-fund/
The Catalyst VLT Fund Video Lottery Terminal (VLT) Fund
Loans between $30,000 and $500,000 with a maximum term of 7 years and fixed interest rate based on credit quality. Personal guaranties are required from owners with 20% or greater interest. Collateral required, 1% loan origination fee at closing. SBA classified as a small business. Other requirements may apply.
Loans between $5,000 and $250,000 with terms up to 10 years, interest rates ranging from 6% to 12%, No minimum credit score, collateral required. Personal guaranty required from all owners with 20% or greater interest, Business plan required. SBA classified as a small business. Other requirements may apply.
www.marylandcapital.org/services/business-loans/
Casino Business Investment Fund
Fund
Loans from $50,000 to $500,000, one to ten year term, flexible interest rates, full, limited, and no collateral value coverage will be considered, personal guaranty required, will consider businesses and individuals that have less than fair credit scores. SBA classified as a small business. Other requirements may apply.
www.mcbif.com/
Loans between $2,500 and $250,000. Interest rates between 4.5%12%, maximum 10-year term. Unsecured loans up to $10,000, Minimum Collateral Coverage for loans above $10,000: 25%. SBA classified as a small business. Other requirements may apply.
www.ledcmetro.org/ace_loan_program
Loans between $10,000 and $1,000,000. Flexible interest rates with terms up to 5 years for working capital and up to 15 years for fixed assets, business plan required. Personal credit score of 650 but lower scores considered;considered, personal guaranties from all owners with 20% or greater interest, collateral required, minimum equity injection of 10% for start-up businesses, application fee $250 (non-refundable); 1% loan origination fee at closing. SBA classified as a small business. Other requirements may apply.
www.tccwmd.org/programs/summit-financing-solutions/
The Maryland Department of Commerce, the state’s primary economic development agency, is committed to providing outstanding customer service to Maryland’s businesses and creating a business-friendly environment to strengthen our economy. Whether investing in Maryland as a business owner, a lending institution or as an economic developer, Maryland Commerce provides assistance navigating the various financial incentives for businesses.
For additional information about the VLT program contact:
Darla Garrett, Program Manager, Office of Finance Maryland Department of Commerce darla.garrett@maryland.gov 410- 767-6963