Friday, June 29, 2012

Small Business Plus! Program to Launch

I am very pleased that Montgomery County will be investing with our local community banks so that they will be able to make small business loans to help with job creation and economic development in our County. I’ve been a strong supporter of this program, so I’m glad it is now hitting the ground.

Montgomery County today announced an early July launch of the Small Business Plus! program. Through a unique collaboration between Montgomery County and community banks headquartered in the County, Small Business Plus! was developed to promote job growth through small business lending and earn a competitive rate of return for the County on its investment. Ten million dollars in County funds will be invested in participating community banks which will commit an equal amount, with the result that $20 million will be lent to local small businesses to further promote the creation of new jobs.

Banks are eligible to participate if they meet the following criteria: they must be headquartered in Montgomery County; must have assets greater than $200 million and less than $5 billion; and meet certain safety and soundness standards established by the County.

Under the program, a participating bank must originate the loans within 12 calendar months of the commitment by the County to make a program related deposit in that bank. All of the funds deposited will be covered by FDIC (Federal Deposit Insurance Corporation) insurance. Montgomery County will produce an annual report documenting the loan activity and estimating the number of jobs created through the program. This program is similar to a very effective program that has been successful in the State of Massachusetts and another program for which legislation has been introduced in the District of Columbia. Earlier this year the Maryland General Assembly approved a “Lend Local Act” to boost small business lending.

Among the banks who have agreed to partner with the County are Capital Bank, Congressional Bank, EagleBank, Monument Bank, and OBA Bank.

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