Video Lottery

Terminal Fund

Video Lottery Terminal (VLT) Fund

As home to Ocean Downs – Delmarva’s only casino – small businesses on Maryland’s Coast can tap the VLT Fund. The program uses slot machine proceeds to assist small, minority, and women owned businesses in areas near Maryland casinos. 

Learn more about the VLT Fund here or contact our Business Recruitment Specialist Michele Burke for more information.

While businesses may apply to any of the eight fund managers, the program has a regional focus. Worcester County businesses should initially contact either Maryland Capital Enterprises in Salisbury (Maurice Ames) or the Anne Arundel Economic Development Corporation in Annapolis (Stephen Primosch).

Description

Created with the small business owner in mind, the state’s Video Lottery Terminal (VLT) fund uses proceeds from video lottery terminals (slots) to assist small, minority, and women owned businesses located in targeted areas surrounding six Maryland casinos. The revolving fund offers loans between $25,000 to $500,000 for purposes such as business and commercial real estate acquisition and expansion, lease-hold improvements, equipment, and working capital.

Thanks to Ocean Downs’ Worcester County location, numerous small businesses have tapped the VLT Fund to start or expand on Maryland’s Coast. The VLT Fund uses slot machine proceeds to assist small, minority, and women owned businesses in areas near Maryland’s casinos. 

Loan Requirements

  • Personal credit (640 or above)
  • Historical Debt Service Coverage Ratio (DSCR) of 1.00x or projections with assumptions showing 1.00x DSCR
  • Collateral when available
  • All owners over 20% must personally guaranty the loan
  • Life insurance on owner/guarantor where no valid succession plan is in place
  • Minimum equity injection of 10% for start-up businesses
  • Business plan for start-ups

Worcester businesses who have used the VLT Loan Program include:

  • Plak That, West Ocean City
  • Hoop Tea, Ocean City
  • Daily Brew, Snow Hill
  • The Kite Loft, Ocean City

Loan Requirements

  • Personal credit (640 or above)
  • Historical Debt Service Coverage Ratio (DSCR) of 1.00x or projections with assumptions showing 1.00x DSCR
  • Collateral when available
  • All owners over 20% must personally guaranty the loan
  • Life insurance on owner/guarantor where no valid succession plan is in place
  • Minimum equity injection of 10% for start-up businesses
  • Business plan for start-ups

Worcester businesses who have used the VLT Loan Program include:

  • Plak That, West Ocean City
  • Hoop Tea, Ocean City
  • Daily Brew, Snow Hill
  • The Kite Loft, Ocean City

FUND MANAGER CONTACTS

There are seven fund managers in Maryland (see below) who oversee the distribution of VLT funds.

For more information about VLT contact the fund manager in your area:

  • Anne Arundel Economic Development Corp

    Stephen Primosch, VP of Financial Services
    2660 Riva Road, Suite 200
    Annapolis, MD 21401
    (410) 222-7410
    sprimosch@aaedc.org

  • Maryland Capital Enterprises Inc.

    Maurice Ames, Director of Operations
    144 East Main Street
    Salisbury, MD 21803
    (410) 546-190
    mames@marylandcapital.org