To promote innovation and entrepreneurship and help bring much needed resources to Maryland’s technology community, the Anne Arundel Economic Development Corporation and Chesapeake Innovation Center have opened the application round for technology loans, a component of the increasingly popular VOLT Fund small business loan program. ONLY Maryland based technology companies are eligible to apply, with an emphasis on awards to small, minority and women-owned. Since May 1, 2013 The VOLT Fund program has been processing loans as part of its mission to distribute more than $11 million of Maryland’s casino revenue to small and minority/women-owned businesses around the state. Specific to The VOLT Fund is AAEDC’s commitment to disbursing eighty percent of the loans to conventional small business while obligating twenty percent to emerging technology companies. The goal of providing loans to promising early stage companies is to help attract follow-on funding from venture capital firms, angel investors and other sources High potential early stage small, minority and women-owned technology companies with a clear path to follow-on funding, particularly engaged in cyber security, microelectronics, telecommunications,energy, life sciences or health IT are highly encouraged to apply. Loans amounts range from $100,000 to $250,000. Specific to The VOLT Fund, non-traditional loans to technology companies are long term loans with no principal or interest payments until the technology company experiences a liquidity event such as an acquisition, investment from venture capital/angel investors or private equity firms, or an initial public offering (IPO), preferably within 18-24 months of the loan closing. Within 60 days of the liquidity event, the company will pay a one-time ten percent (10%) earnest payment back to the VOLT Fund, followed by cash flow based principal payments. Please visit The VOLT Fund page at www.aaedc.org for application details.
