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Department of Finance: Fiscal Management Program


On October 3, 2000 the County Council adopted the Policies and Criteria for the Economic Development Revenue Bonds tax-exempt financing program.

Additional information:


Fee Requirements:

  1. Fees - A non-refundable Application Fee of $5,000 will be charged at the time the application is filed to the Montgomery County Department of Finance. Checks should be made payable to Montgomery County and remitted to the Director, Department of Finance with your application.
  2. Annual Administrative Fee: 10 basis points (up to a maximum of $10,000) will be due and payable at closing and on an annual basis thereafter. Subsequent annual administration fees are calculated on the principal balance of the bonds outstanding.
  3. All legal and administrative costs incurred in the course of reviewing and/or pursuing these financing agreements shall be borne by the applicant/borrowers, regardless of whether a financing agreement is ever ultimately consummated



All entities desiring to apply for economic development revenue bonds must submit the following information regarding their organization and the project for which financing is requested.

    1. A description of the organization or business and a copy of most recent annual report, if any.
    2. Description of products and/or services.
    3. Financial statements for the latest three years of operation and interim statements. Audited statements are preferred.
    4. Percentage of gross revenue resulting from federal contracts, if any.
    5. Payrolls (current and projected for 3 years).
    6. Indicate number of years located in the County, or if a start-up or relocating to the County.
    7. A Letter of Good Standing issued by the State of Maryland Department of Assessments and Taxation.
    8. If a non-profit organization, a copy of the organization's IRS Determination Letter.
    1. Purpose of the project.
    2. Amount and term of bond financing/loan being requested.
    3. Proposed financing term sheet/financing structure including a description of any anticipated sources of funds other than the proposed loan through the County.
    4. Description of facilities to be constructed and/or acquired.
    5. Location, address, and size of site (attach site map and plat).
    6. Schedule of estimated project costs itemized to indicate price of land, building, cost of rehabilitation if existing structure, and other costs (including architectural/engineering, financing, legal fees, etc.).
    7. Description of new equipment to be acquired and estimated costs. (Please note if equipment will be leased and whether it is manufacturing or non-manufacturing equipment.)
    8. Status of other government approval processes pertaining to the project (land use, zoning change, permits, etc.) and disclosure of any legal issues involving the project.
    9. Projected schedule of events that must take place prior to closing (contracts, reviews, approvals, etc.)
    1. Total present at-place employment in Montgomery County and Washington Metropolitan Area.
    2. Breakdown of in-County employment by occupational category (i.e., executive, mid-management, skilled, semi-skilled, clerical or support).
    3. Average salary by occupational category.
    4. Projection of new employment (by year for five year period) by occupational category and average salary.
    5. Number of present employees living in Montgomery County.
    6. Estimate of new hires from Montgomery County and the number of new hires expected to move into the County.
    1. Projected tax benefits.
    2. Projected new employment opportunities created for unemployed, unskilled workers, etc.
    3. Willingness to participate in County sponsored employment-training programs.
    4. Summary of other unquantifiable or intangible benefits which may accrue to the local economy and community.
    5. Relationship of company products or services to existing County businesses or to a County department or agency, if any.
    6. Community activities of corporation.
    7. Other benefits.



The typical sequence of events for County review and approval of economic development revenue bonds is listed below. Tax-exempt program participants must follow this sequence and provide the County with all the required documents.

  1. The potential Borrower completes an application for tax-exempt financing and provides relevant materials and the application fee to the County. The actual application is to follow the form described in the previous section. A copy of the application is also submitted to the County’s bond counsel.
  2. The Department of Finance (DOF) reviews the application and requests a Letter of Intent from the Borrower. The County’s bond counsel drafts a County Council Resolution to obtain Council acceptance.
  3. The Department of Finance holds a TEFRA/public hearing. Following the hearing, the DOF forwards its recommendation to the County Executive with the relevant Letter of Intent and Resolution.
  4. If the County Executive accepts the Letter of Intent and Resolution, it is forwarded to the County Council for action.
  5. The County Council takes action on the Resolution.
  6. At a minimum, the entire process should take approximately 6 weeks. More time may be required depending on the County Council’s agenda.


Montgomery County, Maryland Department of Finance Fiscal Management Program
101 Monroe Street · Suite 1500 · Rockville, Maryland 20850
240-777-8860 · Fax: 240-777-8857