Frederick County, Allfirst Bank launch below-prime interest rate loan

Daily Record, The (Baltimore), Sep 6, 2002 by Patrice Dickens

A new $15 million loan program launched yesterday by Allfirst Bank and Frederick County officials to offer below-prime interest rates to companies located in or moving to planned growth areas within the county is "already gathering critical mass," according to a bank official.

"Five to six people have inquired about it already. Three of them look promising right out the box and the others I have appointments with," said William "Bill" Saccardi, vice president, commercial banking for Allfirst Bank.

Financing by the Allied Irish subsidiary is available to companies located in or moving to a priority funding area as defined under the state's Smart Growth initiative. Such areas include municipalities and the industrial parks on Rt. 85 and Rt. 355.

The Frederick County Office of Economic Development and the Chamber of Commerce have joined forces with Allfirst to make the loan program possible.

"This timely initiative by Allfirst meets a need and supports a plan for economic vitalization and demonstrates the resourcefulness of private industry," said Joe Lebherz, president and chief executive of the county's Chamber of Commerce, in a prepared statement.

"It's refreshing to have a private company step up in this way," Lebherz said in a telephone interview. "So often we look to government for this program or that program," he concluded.

The county is home to about 5,000 companies, most of which are located in priority funding areas already, said Marie S. Keegin, executive director of the Frederick County Office of Economic Development.

The county has seen promising growth in recent years, especially in the area of small business, Lebherz said.

Saccardi agrees.

"In the last seven years, I have seen unbelievable growth in this market," said Saccardi, who moved to Middletown in 1992.

"To me, it's Montgomery County North. It's a natural extension of the I-70 corridor," Saccardi said, noting that the area is a niche for technology companies and a "hotbed for small businesses."

Saccardi thinks that companies involved in light manufacturing, distribution, subcontracting and restaurateurs are just some of the businesses that would be ideal for the priority funding area.

"It's a very enjoyable place to live, to work ... offering a small home town flavor but at the same time the support of a high tech industry," Saccardi said.

Loans may be used for real estate acquisition and or renovation, equipment financing and working capital. The minimum loan amount is $50,000, the maximum $3 million. Loans will carry up to five-year terms with amortizations up to 25 years available depending on the credit.

Allfirst said it will use its status as a preferred lender with the Small Business Administration to determine if government guarantee programs can help support loan requests that require non- traditional loan structures.

The loan program will continue until the $15 million has been allocated or until the end of 2003, whichever comes first, Allfirst said.