2025 SBA Loans in Maryland for Small Businesses Now

SBA Loans in Maryland: Complete 2025 Guide for Small Businesses

The Maryland small business landscape is flourishing, and with new market opportunities in 2025, accessing capital is more important than ever. The U.S. Small Business Administration (SBA) partners with local banks and lenders to provide affordable loans that help Maryland entrepreneurs start, buy, or grow businesses. This comprehensive guide covers all major SBA loan types, up-to-date rates and terms, top SBA Preferred Lenders serving Maryland, step-by-step application instructions, and local resources to ensure you’re ready for success.

Why Choose an SBA Loan in Maryland?

• Lower Down Payments: As low as 10% versus 20-30% conventional requirements.
• Flexible Terms: Repayment terms up to 25 years for real estate and 10+ years for equipment or working capital.
• Government-Backed: SBA guarantees between 50-85% of the loan, encouraging lenders to approve more applicants.
• Competitive 2025 Rates: As of Q2 2025, SBA 7(a) rates typically range Prime + 2.75% – 4.5% (9.0% to 10.75%).
• Support for Startups & Acquisitions: Unique programs for new ventures and business purchases in Maryland’s growing economy.

Types of SBA Loans Available in Maryland (2025)

1. SBA 7(a) Loans

The most popular program, great for startups, working capital, refinancing, business acquisition, and equipment financing.

• Max Amount: Up to $5 million
• Interest Rate: Prime + 2.75%-4.5%
• Term: Up to 10 years (working capital); up to 25 years (real estate)
• Down Payment: Typically 10%-15%

Popular Use: Business acquisition funding for Maryland’s thriving franchises, healthcare clinics, and manufacturing shops.

Need capital? GHC Funding offers flexible funding solutions to support your business growth or real estate projects. Discover fast, reliable financing options today!

Test Your Expertise: The Complexities of the 1031 Exchange

As a sophisticated real estate investor, you understand that the 1031 Exchange is a cornerstone strategy for tax deferral and wealth accumulation. But beyond the basics, the intricacies of the 1031 Exchange rules can pose significant challenges. This quiz is designed to test your in-depth knowledge and highlight critical nuances that separate casual investors from true experts in 1031 Exchange transactions.

Instructions: Choose the best answer for each question.

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Question 1: Understanding "Like-Kind" in a 1031 Exchange

Which of the following scenarios most likely qualifies as a like-kind property exchange under IRS Section 1031, allowing for 1031 Exchange tax deferral?

a) An investor exchanges a portfolio of publicly traded REIT stocks for a commercial retail building. b) An investor exchanges their primary residence, used for personal living for 15 years, for a duplex intended for rental income. c) An investor exchanges raw land held for appreciation in Texas for a stabilized apartment complex in Florida, both held for investment. d) An investor exchanges a classic car collection (personal property) for a single-family rental home (real property).

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Question 2: Navigating the 45-Day Identification Period for a 1031 Exchange

An investor sells a multi-family property on June 15th for a 1031 Exchange. According to the strict timelines, by what date must they identify their replacement properties to comply with the 1031 Exchange requirements?

a) July 30th of the same year, as the 45-day period includes weekends and holidays. b) August 29th of the same year, allowing for an extra 45 days if needed. c) December 12th of the same year, aligning with the 180-day completion period. d) January 1st of the following year, if they plan to file for an extension.

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Question 3: The Role of a Qualified Intermediary (QI) in a 1031 Exchange

Why is the engagement of a Qualified Intermediary (QI) absolutely critical for the validity of a 1031 Exchange?

a) The QI provides investment advice and helps the investor choose the best replacement property for their 1031 Exchange strategy. b) The QI acts as a liaison with the IRS, directly negotiating tax liabilities related to the 1031 Exchange process. c) The QI holds the proceeds from the relinquished property's sale, preventing the investor from having "constructive receipt" of funds, which would invalidate the 1031 Exchange. d) The QI provides legal and tax advice to ensure the 1031 Exchange is perfectly compliant

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Question 4: Understanding "Boot" and its Impact on a 1031 Exchange

An investor sells a commercial building with $500,000 in equity for a 1031 Exchange. They purchase a replacement property for $450,000, effectively reducing their debt by $50,000. What is the tax implication of this scenario within the 1031 Exchange framework?

a) The entire 1031 Exchange is disqualified because the investor "traded down" in value. b) The $50,000 in reduced debt is considered "boot" and will be immediately taxable as partial gain in this 1031 Exchange. c) There are no immediate tax implications, as the primary goal of the 1031 Exchange is only about the "like-kind" nature of the properties. d) The investor can defer the $50,000 as long as they pay off other personal debts with the funds, still qualifying for a full 1031 Exchange.

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Question 5: Advanced 1031 Exchange Strategies & Flexibility

An investor aims to sell a highly appreciated single-tenant retail property and replace it with multiple smaller, diversified multi-family units to spread risk. Which of the following 1031 Exchange identification rules best allows for this diversification strategy, maintaining eligibility for a 1031 Exchange?

a) The "Three Property Rule," where the investor can identify up to three properties of any value, regardless of the relinquished property's value, for their 1031 Exchange. b) The "200% Rule," allowing identification of any number of properties, provided their aggregate fair market value does not exceed 200% of the relinquished property's value for the 1031 Exchange. c) The "95% Rule," which states that if more than three properties are identified, the investor must acquire at least 95% of the aggregate value of all identified properties to qualify for the 1031 Exchange. d) All of the above are valid identification rules within a 1031 Exchange, offering flexibility for various investment strategies.

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The Ultimate DSCR Loan for Rental Property Quiz

Are you looking to expand your real estate investment portfolio? A DSCR loan might be the perfect tool to help you achieve your goals without relying on traditional income documentation. Test your knowledge with this quiz to see if you're ready to master the intricacies of a DSCR loan for rental property.

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Page 1 of 5

What is the primary factor a lender considers when approving a DSCR loan for rental property? A) The borrower's personal income and debt-to-income (DTI) ratio. B) The borrower's credit score and employment history. C) The property's potential rental income compared to its monthly expenses, known as the Debt Service Coverage Ratio. This is the key metric for a DSCR loan for rental property eligibility and approval. D) The total value of the borrower's existing investment properties and personal savings.

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How does a DSCR loan for a rental property differ from a conventional mortgage for a personal residence? A) A conventional mortgage requires a DSCR calculation, whereas a DSCR loan for a rental property does not. B) A DSCR loan for a rental property primarily focuses on the property's cash flow, allowing investors to qualify without traditional income verification, unlike a conventional mortgage which is based on personal income and liabilities. C) A conventional mortgage has a higher interest rate and stricter requirements than a DSCR loan for a rental property. D) A DSCR loan for a rental property is only available for commercial properties, not residential rental properties.

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What is an ideal Debt Service Coverage Ratio (DSCR) for a lender when evaluating a DSCR loan for a rental property? A) A DSCR of 0.75, indicating the property generates 75% of the income needed to cover its debt service. B) A DSCR of 1.00, meaning the property's income exactly equals its debt service. C) A DSCR of 1.25 or higher, as this indicates the property's income is greater than its expenses, making it a strong candidate for a DSCR loan for a rental property and providing a buffer for unexpected costs. D) A DSCR of 2.00, which is the standard minimum for all investment properties, regardless of location or market conditions.

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Which of the following expenses are typically included in the calculation of the Debt Service Coverage Ratio for a DSCR loan for a rental property? A) The property's mortgage payment (principal and interest), property taxes, and insurance, which are the core components used to determine if the property can support the debt. B) The property's mortgage payment, property taxes, insurance, and the borrower's personal credit card debt. C) The property's monthly rental income and all utility bills, regardless of who pays them. D) Only the principal and interest payment of the loan, as other expenses are not considered in a DSCR loan for a rental property calculation.

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Who would most benefit from using a DSCR loan for a rental property? A) A first-time homebuyer with a W-2 salary and a high debt-to-income ratio, who is looking to purchase a primary residence. B) A seasoned real estate investor with multiple properties who wants to expand their portfolio without using personal income to qualify, making a DSCR loan for a rental property the ideal financing solution for their needs. C) Someone looking to finance a primary residence with a low down payment and a government-backed loan. D) An individual with a very low credit score who cannot qualify for any other type of loan.

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2. SBA 504 Loans

Best for major fixed-asset purchases like commercial real estate or equipment.

• Max Amount: Up to $5.5 million (total project costs may reach $15M+ through lender + CDC structure)
• Interest Rate: As low as 6.4% fixed as of 2025
• Term: 10, 20, or 25 years
• Down Payment: As low as 10% (higher for startups or special-use properties)

Popular Use: Purchasing medical offices in Baltimore or warehouses in the I-95 corridor.

3. SBA Microloans

✅ Small Business Resources 

• SBA – Small Business Administration
  https://www.sba.gov

• SCORE Mentors (Free Mentoring & Workshops)
  https://www.score.org
• Small Business Development Centers (SBDC)
  https://americassbdc.org

Are You an SBA Real Estate Loan Expert?

Test your in-depth knowledge on using SBA Loans for owner-occupied commercial Real Estate acquisition. These questions delve into the critical details that can impact your business's growth and financial strategy.

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Page 1 of 5

For an existing commercial property, what is the minimum owner-occupancy percentage required for an SBA 7(a) real estate loan, and does this specific scenario qualify?

A manufacturing company plans to acquire a 30,000 sq ft industrial real estate facility using an SBA 7(a) Loan. The company initially needs 18,000 sq ft for its operations and intends to lease out the remaining 12,000 sq ft.

A) 60%; Yes, it qualifies. B) 51%; Yes, it qualifies. C) 75%; No, it does not qualify. D) 60%; No, it does not qualify, as they are leasing out a portion.

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Which of the following sets most accurately represents additional cost categories that can typically be financed within an SBA 504 Loan for a commercial real estate project?

Hint: Beyond the straightforward purchase of a commercial real estate property, an SBA 504 Loan is highly effective for comprehensive projects.

A) Business inventory, working capital, and employee salaries. B) Building renovations, long-term machinery essential to operations within the property, and soft costs like architectural fees. C) Advertising expenses, short-term equipment leases, and utility deposits. D) Personal real estate investments, vehicles for personal use, and stock market investments.

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Between an SBA 7(a) Loan and an SBA 504 Loan, which program generally offers the lowest typical borrower down payment for a commercial real estate acquisition, and what is that common minimum percentage for established businesses?

A highly profitable professional services firm in a competitive market wants to purchase its office real estate with minimal upfront capital. The firm's owners prioritize cash flow and liquidity.

A) SBA 7(a) Loan; 15% B) SBA 504 Loan; 10% C) SBA 7(a) Loan; 5% D) SBA 504 Loan; 20%

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For new construction, what is the initial minimum owner-occupancy percentage required, and what is the maximum timeframe to meet the full owner-occupancy threshold, for an SBA Real Estate Loan?

A fast-growing tech startup plans to construct a new 50,000 sq ft headquarters using an SBA Loan. They will immediately occupy 35,000 sq ft and have a definitive plan to occupy the remaining 15,000 sq ft within two years as their team expands.

A) Initial 51%, full 80% within 5 years. B) Initial 60%, full 80% within 3 years. C) Initial 75%, full 100% within 1 year. D) Initial 51%, full 100% within 2 years.

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What is this crucial requirement, and what fundamental principle does it underscore for the lender?

When securing an SBA Loan for a commercial real estate purchase, principal owners with a 20% or greater ownership stake are almost universally required to provide a specific type of assurance beyond the collateral of the real estate itself.

A) A fixed-rate interest payment commitment, demonstrating long-term stability. B) A first-lien position on all personal assets, ensuring full recovery. C) A personal guarantee, signifying the owners' personal commitment to loan repayment. D) A business plan with projected revenue growth of at least 15% annually, showing future viability.

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Designed for new and small businesses seeking modest funding.

• Max Amount: Up to $50,000 (average size: $15,000)
• Interest Rate: 8-13%
• Term: Up to 6 years
• Down Payment: Flexible, case-by-case

✅ Real Estate Investor Resources

• AirDNA (Short-Term Rental Data)
  https://www.airdna.co

• Rentometer (Rent Comps)
  https://www.rentometer.com
• Zillow Research & Data
  https://www.zillow.com/research

DSCR Loan IQ Quiz!

Test your knowledge of Debt Service Coverage Ratio (DSCR) loans!

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Page 1 of 3

What is the primary factor a lender focuses on when approving a DSCR loan for an investment property? a) The borrower's personal debt-to-income (DTI) ratio b) The property's ability to generate enough income to cover its mortgage payments c) The borrower's credit score history over the past 10 years d) The total number of investment properties the borrower already owns

Page 2 of 3

If a property has a Net Operating Income (NOI) of $5,000 per month and its total monthly debt service (PITI) is $4,000, what is its DSCR? a) 0.8x b) 1.0x c) 1.25x d) 5.0x

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Which type of borrower most commonly benefits from using a DSCR loan? a) First-time homebuyers purchasing a primary residence b) Investors with a strong W-2 income and minimal tax deductions c) Self-employed individuals or those with complex income who want to avoid traditional income verification d) Homeowners looking to refinance their primary residence for a lower interest rate

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Popular Use: Startup bakery working capital in Annapolis, minority-owned retail in Prince George’s County.

4. SBA Express Loans

Faster approval with streamlined paperwork, ideal for working capital needs.

• Max Amount: $500,000
• Interest Rate: Prime + 4.5%-6.5%
• Term: Up to 7 years
• Decision Time: 36 hours or less

Popular Use: Expanding e-commerce businesses and service firms across Maryland.

5. SBA Export Loans

Support for businesses involved in international trade, leveraging Maryland’s ports.

• Export Express: Up to $500,000, quick access
• Export Working Capital: Up to $5 million, supports exports
• International Trade Loan: Up to $5 million, for expanding export sales

Do You Qualify for a Maryland SBA Loan?

• Operate for profit, and be based in Maryland
• Meet SBA size standards: Most businesses under 500 employees qualify
• Have owner equity invested; strong business plan for startups
• Good personal and business credit (typically 650+ FICO, but some programs more flexible)
• Cannot obtain credit elsewhere on reasonable terms
• No recent bankruptcies or serious delinquencies

Startup businesses can qualify for SBA loans in Maryland, especially with 10-20% owner equity and robust personal credit.

Maryland’s Top SBA Preferred Lenders (2025)

• M&T Bank (Baltimore): Maryland’s leading SBA lender for 7(a) and Express loans. Known for local knowledge in Baltimore-Washington region.
• EagleBank (Bethesda): Focuses on real estate and business acquisitions, strong ties to tech and healthcare sectors.
• Frost Bank (serving Maryland): National SBA PLP expertise and fast approvals, noted for working capital loans.
• Howard Bank (Columbia): Maryland community banking resource, excels with microloans and personalized small business support.
• Wells Fargo (statewide): Robust SBA lending operation, streamlined 504 processing, large branch network.

Most Maryland lenders offer special programs for women-owned, minority, and veteran businesses. Always ask about local incentives!

2025 Maryland SBA Loan Rates, Fees, and Terms

Step-by-Step: How to Apply for an SBA Loan in Maryland

1. Identify your Loan Purpose (startup, acquisition, equipment, working capital, real estate, export)
2. Prepare Documentation:
   • Business and personal tax returns (3 years)
   • Business plan for startups
   • Profit & loss, balance sheet
   • Personal financial statement
   • Ownership/management resumes
   • Business licenses & entity docs
3. Choose a Lender: Contact a Maryland-based SBA Preferred Lender
4. Apply: Complete lender’s application and SBA Form 1919
5. Lender Review: Bank evaluates credit, collateral, business viability, and submits for SBA guarantee
6. Approval & Closing: Upon approval, sign closing docs and receive funds (often within 45-60 days; Express loans much faster)

Success Stories: Real Maryland SBA Loan Examples (2025)

• Startup Tech Company, Bowie: $250,000 7(a) loan for R&D and early hires. Owner invested $30,000 personal capital. Opened doors in 4 months thanks to M&T Bank.
• Construction Firm Acquisition, Montgomery County: $1.3M 7(a) loan financed the purchase of established home services business. Buyer had strong credit and industry experience; deal included $150K working capital.
• Commercial Real Estate, Frederick: $2.5M 504 loan package acquired and renovated a light-industrial facility. Down payment just 10%. EagleBank and local CDC partnered for a fast close.
• Café Chain Expansion, Baltimore: $95,000 SBA Express loan funded new equipment and renovations in under 3 weeks. Owner was a military veteran leveraging Maryland incentives.
• Exporting Medical Devices, Columbia: $500,000 Export Working Capital loan scaled production and entered the EU market, supported by U.S. Export Assistance Center in DC.

Maryland SBA District Office & Local Resources

Maryland District Office
100 South Charles Street, Suite 1201, Baltimore, MD 21201
Phone: (410) 962-6195
sba.gov/md

• SCORE Maryland: Free business mentoring and workshops statewide
• Small Business Development Centers (SBDC): Regional centers for technical assistance & business plan support
• Women’s Business Centers (WBC): Dedicated to women entrepreneurs

Maryland Small Business Incentives & Economic Development (2025)

Maryland offers robust programs complementing SBA financing, including:

• Maryland Small Business Development Financing Authority (MSBDFA): Loans and guarantees for minority and women-owned firms
• Job Creation Tax Credit: Significant incentives for creating new permanent Maryland jobs
• BioHealth Capital Incentives: State grants and capital for biotech, health, and life sciences ventures
• Enterprise Zones: Property and employment tax credits in designated expansion areas
• ExportMD Program: Grant reimbursement for international marketing and trade show expenses

Frequently Asked Questions about SBA Loans in Maryland (2025)

• Can startups get SBA loans in Maryland?
  Yes. With solid business plans, some owner equity, and good personal credit, many Maryland banks will finance startups and new franchises.
• What credit score is needed?
  Generally, 650+ for 7(a) and 504; some microloans accept lower with compensating strengths.
• How quickly can I get funds?
  Express and microloans: 1-3 weeks; 7(a)/504: 45-60 days typical.
• Are collateral and personal guarantees required?
  Usually yes, but not always 100% for all loan types (i.e., microloans).
• Can I use an SBA loan for business acquisition?
  Absolutely—7(a) is frequently used to acquire established Maryland businesses.

Ready to Grow Your Maryland Small Business in 2025?

Contact a Maryland SBA lender to start your application, or connect with the Maryland SBA District Office for guidance today. With flexible programs, low down payments, and tailored local support, SBA loans are the bridge to your small business’s next milestone.

Get a No Obligation Quote Today.

GHC Funding DSCR LOAN, SBA LOAN, BRIDGE LOAN

Contact GHC Funding Today. Main: 833-572-4327 Email: sales@ghcfunding.com

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