Finding the funds necessary to start a business can be hard to do. Many new business ideas have potential, but getting a bank to agree and give loans to start a company can be difficult, regardless of how impressive the presentation given may be. Thanks to the new Volt Fund, Maryland residents now have another option when seeking a new business loan.
The Volt Fund basically uses money earned from the use of slot machines to finance commercial loans. While a good portion of this money will go to businesses owned by minorities and women, other portions are reserved simply for solid business ideas or start-up technology firms. The program rules state that half of the money earned has to be used for commercial businesses loans for firms within 10 miles of a state casino. After that, the rest of the money can go to those seeking small business loans across the state.
This new fund recently helped get a small business off the ground by granting the owner a $25,000 loan, that was originally denied him by his bank. The Brick House in Annapolis has so far been successful in maintaining fully booked classes and creating new jobs for the community. The owner of this business says the loan granted him is responsible for giving them such a strong start.
New business owners sometimes have to jump through a lot of hoops to get their business off the ground. Legally protecting their company is vital and creating a business formation plan can help all individuals involved maintain focus and reach company goals. For Maryland residents who may be looking to start a new business, creating a business plan to include roles of specific individuals, where the company is headed and what it will take to get there can be helpful in determining their future success.
Source: The Washington Post, Maryland bets on small businesses with loans financed by slot machines, J.D. Harrison, Dec. 20, 2013