December 3, 2024

Personal Economic Consulting

Smart Investment, Bright Future

Beyond one-size-fits-all: The rise of bespoke business loans

Beyond one-size-fits-all: The rise of bespoke business loans

In today’s competitive business landscape, access to tailored financing options can make all the difference for businesses. The Howard County Economic Development Authority (HCEDA) recognizes this need and is committed to providing personalized funding solutions that cater to the unique requirements of each business.

“At HCEDA, we understand that every business has its own set of challenges and goals,” says CEO Jennifer Jones. “That’s why we offer a range of loan programs designed to meet the specific needs of our diverse business community.”

Two key initiatives spearheaded by HCEDA are the LIFT Fund and the Catalyst Fund. The Leveraging Investment for Future Transformation Fund, or “LIFT Fund,” provides microloans ranging from $10,000 to $30,000 for a three- to five-year term. These loans are particularly beneficial for new businesses that may not yet qualify for traditional bank loans.

“Microloans are great for new businesses who may not yet be at the level to obtain a loan from a bank,” explains HCEDA’s Director of Business Finance, Darshni Patel. “LIFT Fund loan recipients can also receive mentoring on issues like cash flow and lines of credit.”

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F&F Wholesalers, a minority-owned supplier of durable goods to government agencies, was the first LIFT Fund recipient. Founder Olufunmilola ‘Funlola’ Odekunle says, “I think the HCEDA is a necessary resource for the county. I think it’s very important for the minority business community because if it didn’t exist, I’m very sure a lot of minority businesses would probably be dead in the water.”

For businesses looking to expand, the Catalyst Fund offers a powerful solution. This revolving loan fund provides capital to expanding businesses statewide, with a focus on creating permanent jobs and leveraging private sector investment. Loans up to $500,000 are available for a three-, five- or seven-year term.

Xcision Medical Systems, pioneers of state-of-the-art cancer care technology, is a recent Catalyst Fund recipient. President and CEO Dr. Cedric Yu says, “Xcision has been in Howard County since its founding in 2006. The Catalyst Fund enabled us to expand into international markets and increase sales, allowing our unique non-invasive radiotherapy to benefit more women suffering from breast cancer.”

To further assist small, minority-owned businesses that may have insufficient collateral, HCEDA has instituted a Collateral Assistance Fund. “We recognize that some businesses may struggle to secure financing due to a lack of collateral,” Jones notes. “Our Collateral Assistance Fund is designed to bridge that gap, enabling eligible businesses to access Catalyst loans they would otherwise qualify for.”

Bamba Foods, a Black-owned business that produces plantain chips distributed nationwide, is a recent Collateral Assistance Fund recipient. Founder and CEO Akin Falodun noted, “One of the ways the Catalyst Fund helped my business is through product diversification. With the additional capital, we were able to expand our product line by introducing new flavors of our plantain chips. This diversification has not only attracted a wider customer base but has also increased revenue streams for Bamba Foods.”

“At HCEDA, we believe that every business deserves a chance to succeed,” Jones concludes. “With our bespoke loan programs, dedicated support, and innovative solutions like the Collateral Assistance Fund, we’re here to help turn entrepreneurial dreams into thriving realities.”


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