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