Starting or growing a small business in Maryland can be an exciting yet challenging journey. One of the key factors in ensuring long-term success is securing the right financial support. For Maryland entrepreneurs with a variety of needs—from expanding your current operation to managing cash flow—finding the right small business loan can make all the difference. But with so many options available, how do you know which lenders offer the best deals for your specific needs?
This article will guide you through the best lenders for small business loans in Maryland, offering insights on the loan types, requirements, and benefits for each lender. Whether you’re seeking a traditional loan, an SBA-backed loan, or alternative financing options, we’ll help you understand your choices and find the most suitable solution for your business.
Best Lenders for Maryland Small Business Loans
1. SBA-Backed Loans through Local Banks
Many Maryland business owners opt for Small Business Administration (SBA) loans because they offer competitive interest rates, extended repayment terms, and lower down payments. The SBA works with approved lenders to provide government-backed loans to small businesses. While applying for an SBA loan can be time-consuming, it’s often one of the best options for those looking for long-term financing.
Top SBA Lenders in Maryland:
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M&T Bank
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BB&T (Truist)
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SunTrust
Pros:
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Lower interest rates compared to traditional loans
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Longer repayment terms (up to 25 years)
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Government-backed, reducing lender risk
Cons:
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Lengthy approval process
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Strict eligibility requirements
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Extensive paperwork required
Eligibility Criteria:
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Must meet SBA’s size standards
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Must be based in the U.S. and have been in business for at least two years
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Good credit score (typically 680+)
2. Traditional Bank Loans for Small Businesses in Maryland
Traditional banks are one of the most common sources for small business loans. Many Maryland-based banks offer specialized small business loans, which come with relatively lower interest rates compared to online lenders. However, the approval process for these loans can be rigid, and banks tend to prioritize businesses with good credit scores.
Top Traditional Banks for Maryland Business Loans:
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Wells Fargo
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Bank of America
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PNC Bank
Pros:
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Competitive interest rates
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Reputation and trust of established financial institutions
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Flexible loan terms
Cons:
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Strict eligibility requirements (high credit score, substantial revenue)
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Long approval timelines
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Extensive paperwork required
Eligibility Criteria:
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At least two years in business
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Satisfactory credit score (typically 680+)
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Proven revenue streams
3. Online Lenders for Maryland Small Businesses
Online lending platforms have become an increasingly popular choice for small businesses in Maryland. These lenders often have more flexible requirements than traditional banks, making them ideal for startups or businesses with poor credit scores. Online lenders offer fast, convenient applications and quick disbursement of funds.
Top Online Lenders for Maryland Businesses:
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Lendio
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OnDeck
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Fundbox
Pros:
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Fast approval and disbursement of funds
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Flexible eligibility criteria
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Accessible to startups and businesses with low credit scores
Cons:
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Higher interest rates compared to traditional lenders
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Shorter repayment terms
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Fees and hidden costs may apply
Eligibility Criteria:
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Minimal credit score requirements (varies by lender)
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Business must be operational for at least 6 months
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Revenue requirements (usually $50K+ annual revenue)
4. Community Development Financial Institutions (CDFIs)
Community Development Financial Institutions (CDFIs) are nonprofit lenders that focus on providing financing to underserved communities, including small businesses in Maryland. CDFIs are a great option for minority-owned businesses, women-owned businesses, and those in low-income areas. While CDFIs might not offer the best interest rates, they can offer valuable funding when conventional options are unavailable.
Top CDFIs in Maryland:
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Capital Impact Partners
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Mission Main Street Grants
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Washington Area Community Investment Fund (WACIF)
Pros:
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Focus on underserved businesses
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Tailored loan terms for community growth
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Often more flexible with credit score and collateral requirements
Cons:
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Interest rates can be higher than traditional banks
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Limited loan amounts
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May require extensive documentation
Eligibility Criteria:
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Priority given to minority, women, or veteran-owned businesses
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Must operate in low-income areas or underserved communities
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Must demonstrate a need for funding
5. Maryland State Loan Programs and Grants
Maryland’s state government offers several programs designed to help small businesses thrive. These programs are particularly valuable for startups, as they provide both funding and technical support. The Maryland Department of Commerce provides multiple loan and grant opportunities for businesses based in the state.
Top State Programs:
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Maryland Small Business Development Financing Authority (SBFA)
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Maryland Economic Development Assistance Authority (MEDAAF)
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Maryland Industrial Development Financing Authority (MIDFA)
Pros:
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Government-backed, lower risk to lenders
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Often comes with additional resources like business consulting
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Competitive rates and flexible repayment terms
Cons:
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Competitive application process
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Limited funding based on the program
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Specific criteria for eligibility
Eligibility Criteria:
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Must be based in Maryland
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Must meet certain business size and revenue standards
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Priority given to certain industries (tech, manufacturing, etc.)
How to Choose the Best Lender for Your Maryland Small Business
Choosing the right lender for your small business loan can be overwhelming. Here are a few factors to consider when making your decision:
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Loan Amount Needed: Understand how much money you need to borrow and ensure that the lender you choose can meet those requirements.
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Interest Rates: Compare rates from different lenders to find the most affordable option.
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Repayment Terms: Consider how long you want to take to repay the loan and how flexible the terms are.
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Eligibility: Check the lender’s eligibility criteria to ensure your business qualifies.
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Application Process: Evaluate how long it takes to process the loan and whether the lender’s process is easy to follow.
5 FAQs About Small Business Loans in Maryland
Q1: How do I know if my business qualifies for a loan in Maryland?
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Lenders generally require your business to be operational for at least six months and have a minimum level of revenue. The requirements vary by lender, so check with individual banks or online platforms.
Q2: What is the minimum credit score for Maryland business loans?
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Most traditional lenders require a credit score of at least 680, while online lenders may accept businesses with lower scores.
Q3: Can I apply for a small business loan in Maryland if I have bad credit?
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Yes, many online lenders and CDFIs offer loans to businesses with bad credit, though you may face higher interest rates.
Q4: How long does it take to get approved for a small business loan in Maryland?
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Traditional lenders can take several weeks to approve a loan, while online lenders often approve loans in as little as 1-2 days.
Q5: Are there any grants available for small businesses in Maryland?
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Yes, Maryland offers several state grants and funding programs, particularly for businesses in underserved areas or specific industries.
Conclusion
Securing a small business loan in Maryland can be a key factor in growing your business and achieving your financial goals. Whether you’re looking for the stability of a traditional bank, the speed of an online lender, or the community support from a CDFI, there are many options available. By understanding your financing needs, eligibility, and the available lending institutions, you can find the perfect solution to fuel your business’s growth in 2025.
If you’re ready to apply for a small business loan in Maryland, consider reaching out to one of the top lenders listed above. Take the first step today toward securing the funding you need to grow your business and achieve your goals!
