Economic Development Fund Grant/Loan Program

Provides flexible, low-cost financing for expanding and newly located County businesses that demonstrate a significant economic impact. The EDF is strategically used to attract private sector capital investment and the creation of high-paying jobs.

• EDF assistance is typically in the form of low interest loans; loans often convert to grants based on businesses attaining certain performance measures.
• Loans generally range between $5,000 - $100,000; higher amounts are possible for businesses involved in large expansion projects.
• Job creation and capital investment are the primary factors affecting the amount of EDF assistance available for expanding businesses.
• Funds may be used to help finance any aspect of expansion project.
• Complements and leverages existing State and private sector financing programs.

Montgomery County Technology Growth Program (TGP)

Provides gap financing for emerging technology-based companies with innovative products or services. The TGP is used as a tool to create jobs in high-technology fields, leverage private investment in Montgomery County businesses, nurture technology development entrepreneurship, and facilitate the construction and improvements of technology facilities. Disbursements from the fund typically range between $10,000- $100,000.

The TGP assistance is typically in the form of a "no-risk" grant that converts to a loan if at any time within five years from the grant disbursement date the applicant generates pre-negotiated annual net revenues or obtains a pre-negotiated level of aggregate equity financing. The grant remains a grant if the applicant fails to meet these predetermined performance measures.

Small Business Revolving Loan Program

Provides financing for business development/expansion of small businesses located in the County. To qualify for the program, the small businesses in the County must have gross revenues of less than $5,000,000 annually and have less than 75 employees. The Program facilitate business development through direct loans and participation in loans made by banks, development corporations and other lenders. The program intends to leverage private sector as well as other governmental funds, and the average size of the Program assistance is $5,000-$100,000, with maximum terms up to 5 years and collateral is required.

Micro Enterprise Loan Program

• Available only to companies located in Montgomery County
• For small businesses with annual revenues of $250,000 or less and five or fewer employees
• Business principals must be at least 18-years-old and reside within Montgomery County
• Maximum amount of $15,000 with terms of three years or less
• Loan must be used to start, expand or stabilize a business
• Special consideration given to women- and minority-owned businesses

The Microenterprise Program works with entrepreneurs that traditional lending institutions consider too small or risky. The department expects the programto increase the number of persons able to start and maintain businesses in the county. DED's Microenterprise Program has four goals:

• develop a strategy for business development and job creation for those traditionally excluded from the economic mainstream;
• build the personal, business, and credit management skills needed for business ownership and create the opportunity for new entrepreneurs to have a long-term attachment to the economy;
• seek economic self-sufficiency of women, ethnic minorities, and other disadvantaged individuals to eliminate barriers for business creation and access to capital; and
• assist microenterprises to develop successful lending track records to enhance their opportunities for traditional bank loans.

DED will use its resources to develop the capacity of micro-enterprises to repay loans so they may then qualify for loans through traditional lending sources. Participants will work with various resource partners, including the Maryland Small Business Development Center Network, U.S. Small Business Administration, Latino Economic Development Corporation, various chambers of commerce and SCORE.