The VOLT Growth Fund (VGF) aims to help Maryland based high growth innovative and technology product companies implement a go-to-market strategy and accelerate sales.  The program has flexible underwriting standards and payment terms to allow a company to grow its revenue and workforce as well as facilitate future equity investment.

Terms

• Loan of up to $100,000
• Term of up to 10 years
• Loan fee of 10% due at the time of event of recapture
• Event of recapture is defined as when the company raises 5x the amount of the original loan in equity investment or 5 years whichever is sooner
• After event of recapture, loan to be repaid over 5 years in equal principal monthly payments
• No interest or other closing costs
• Collateral will be a blanket lien UCC filing assets (AAEDC may release or subordinate the UCC filing in order to allow follow on investment or debt to help grow the company
• Personal guaranty of all active owners over 20%
  • Spousal guaranty and guarantys from investors not active in operations may not be required if all other underwriting criteria are met

Underwriting

• Company should have strong management team in place with a proven track record of success
• The product must be created/completed and ready to bring to market
• AAEDC will evaluate amount of previous and prospective future equity and debt investment in the company when determining viability of success
• Pre-revenue and minimal revenue companies may apply
• Applicant to provide realistic financial projections showing cash flow positive within 12 months
• Borrower is required to provide a business plan or investor deck showing pathway to growth and profitability

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