Small Business Revolving Loan Program

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Montgomery County Small Business Revolving Loan Program

Description

Direct loans or participation in loans made by other financial institutions to small businesses in Montgomery County.  

Eligibility

This loan program is targeted at Montgomery County-based small businesses with gross revenues of less than $5,000,000 annually and fewer than 75 employees.
Eligible businesses must also meet one of these primary tests:

• Program funds must assist the start-up or expansion of the business, or
• Program funds must help retain and stabilize the business.

Amount

Program assistance typically ranges from $5,000 to $100,000, with maximum terms up to 5 years. Collateral and principal's personal guarantee are required.

Evaluation Criteria

Program applicants will be rated on these elements:

• Financial history (if applicable, including personal financial/credit history) and projections, including balance sheets, income statements, cash flow statements, and bank statements (if applicable).
• Background, experience, and financial commitment of the company principal(s) and key management personnel.
• Statement of the amount, timing, and projected use of the County’s assistance and any co-venture capital.
• Projected employment growth, and/or other positive economic impacts that the County's assistance will facilitate.
• Ability of the recipient business to generate sufficient income to service the requested loan.

The applications will be further evaluated using “priority” criteria to arrive at a funding decision.
Priority will be given to:

• assistance that will materially improve the County’s economy and advance the County’s economic development objectives and strategies.
• cases where the County’s assistance will function as a catalyst to the company’s subsequent capitalization.
• cases where the business will create significant employment growth by creating new jobs within 3 to 5 years of funding.
• businesses for whom private/bank financing is not available at the time of application.

Applications

E-mail Lydia Lan for more detailed program information and application materials or call 240-777-2000.