VOLT Fund (Video Lottery Terminal Fund)

Program Type: Long-term loans for small, minority, women, and veteran-owned businesses

Overview:
The VOLT Fund is a state-wide business financing program managed by Anne Arundel Economic Development Corporation (AAEDC) on behalf of the Maryland Department of Commerce. The fund is supported by 1.5 percent of video lottery terminal revenue from Maryland casinos. It provides patient capital to small businesses at critical growth phases and includes a special set-aside for innovative technology companies.

Award Details

• Loan Amount: $25,000 to $500,000
• Interest & Principal Payments: No principal or interest payments are due until a liquidity event occurs
• Liquidity Event Timeline: Preferably within 24 months of loan closing
• Repayment Trigger: Liquidity event defined as:
  • Acquisition
  • Investment from venture capital/angel investors or private equity firms in the amount of 4x the original loan
  • Initial public offering (IPO)

Eligible Uses

• Business and commercial real estate acquisition and expansion
• Lease-hold improvements
• Equipment purchases
• Working capital
• Hiring and staff expansion
• Product development and expansion
• Marketing and sales efforts

Eligibility

• Business Structure: Small, minority, women, and veteran-owned businesses
• Geographic Scope: Businesses must be located within 10 miles of any of Maryland's casinos; Anne Arundel County and Baltimore City qualify
• Employee Count: Fewer than 500 employees
• Annual Revenue: Average annual revenues of $35 million or less over three years
• Location Requirement: For non-technology companies, businesses must be within 10 miles of Maryland casinos

Special Technology Track

The VOLT Fund includes a unique set-aside for entrepreneurs developing innovative technology companies. Technology applicants must meet additional criteria:

• Stage: High-potential early-stage technology companies
• Funding Path: Clear path to follow-on funding
• Leadership: Teams must be led by experienced entrepreneurs or demonstrate willingness to acquire needed management talent
• Financial Milestone: Cash flow break-even point expected within 24 months

Application Process (General)

• Application Window: Two-month application windows
• Selection Process: Two rounds of screening before final selection by investment committee
• Rounds: 2016-2017 round received 52 applications

Contact Information

Anne Arundel Economic Development Corporation

• Address: 2660 Riva Road, Suite 200, Annapolis, MD 21401
• Phone: 410-222-7410
• Email: [email protected]
• Vice President of Financial Services: Steve Primosch

Application Process

General Process:

1. Submit application during designated two-month application window
2. First round review and screening
3. Second round review and screening
4. Final selection by investment committee

Technology Track Process:
Applications follow the same multi-round review process, with additional evaluation criteria for technology companies.

Required Materials

While specific required documents are not fully detailed in the provided materials, applicants should be prepared to provide:

• Business plan and overview
• Financial projections and historical financials
• Management team information and qualifications (for technology track: evidence of experienced entrepreneurs or management capability)
• Details on intended use of funds
• Information on cash flow projections and break-even timeline
• For technology companies: product development stage and path to follow-on funding

Contact for Application Information

Anne Arundel Economic Development Corporation

• Phone: 410-222-7410
• Email: [email protected]
• Address: 2660 Riva Road, Suite 200, Annapolis, MD 21401
• Vice President of Financial Services: Steve Primosch