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Program Description

  Economic Development Fund

The Economic Development Fund consolidates all economic development programs into one program providing effective management and support. The consolidated programs are: Economic Development Grant and Loan Program, Biotechnology Credit Supplement, MOVE Program, Small Business Assistance Program, CyberSecurity Credit Supplement, Microloan Program, the Small Business Innovation Research and Small Business Technology Transfer Matching Grant Program, and the Impact Assistance Fund.

  • The Economic Development Grant and Loan Program was established in FY96 to assist private employers who will either retain jobs already in the County or create additional jobs in the County through the expansion of current operations or relocation of new operations in the County. This program is administered by the Department of Finance through its Fiscal Management Division. Montgomery County Economic Development Corporation (MCEDC) identifies and develops prospects that meet the criteria for a grant or loan from the Economic Development Fund (EDF) and works with Finance to develop an assistance package. Frequently, MCEDC and Finance work in close cooperation and coordination with the State of Maryland to enhance financial incentives being offered. The County Executive submits an annual report by March 15 on the status and use of the EDF as required by Chapter 20-76 (b) of the Montgomery County Code.
  • The Biotech Credit Supplement authorizes the County to provide a local supplement to the State of Maryland's Biotechnology Investment Tax Credit Program. Investors in Montgomery County-based biotechnology companies that are certified to receive biotechnology tax credits under the State program are eligible for a supplemental monetary match from the County of up to 50 percent of the State tax credit, with the final amount dependent and subject to the annual appropriations by the County Council.
  • The MOVE Program is designed to accelerate business attraction, thereby reducing vacant office spaces in the County. It provides a one-time grant for the initial lease of up to 20,000 square feet of class A and B vacant office space. The program is limited to businesses that are new to the County, including craft breweries, cideries, wineries, and distilleries.
  • The Small Business Assistance Program (SBAP) assists certain small businesses located in the County who are adversely impacted by a County-funded redevelopment project or a redevelopment project located on County-owned property, as required by Bill 6-12 adopted by the Montgomery County Council in 2012. Currently, affected small businesses located near Parking Lot 13 in Wheaton are eligible to receive technical and financial assistance under this program.
  • The CyberSecurity Supplement Program awards a monetary supplemental match to qualified investors in Montgomery County-based cybersecurity companies who receive a final tax credit certificate from the State of Maryland's CyberSecurity Investment Incentive Tax Credit Program.
  • The Microloan Program provides loans ranging from $500 to $15,000 for County residents needing additional help to start and grow small businesses.
  • The Small Business Innovation Research and Small Business Technology Transfer (SBIR/STTR) Matching Grant Program allows Montgomery County companies that have been awarded a SBIR or STTR Phase I or Phase II grant from a federal agency and that conducts at least 51 percent of their research & development operations in Montgomery County to apply for a local Montgomery County match.
  • The Impact Assistance Fund (IAF) is a program that provides financial assistance and/or technical assistance to financially healthy small businesses in designated areas of the County that are adversely impacted by a redevelopment project initiated by the County, on County-owned property, or of a County facility. Currently, there are designated geographic areas in Silver Spring, Bethesda, and Clarksburg.

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Program Contacts

Contact Pete McGinnity of the Department of Finance at 240.777.2011 or Felicia Hyatt of the Office of Management and Budget at 240.777.2763 for more information regarding this fund.

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Program Budget Changes

FY23 Recommended ChangesExpendituresFTEs
FY22 Approved44906771.00
Reduce: Microloan Program -500000.00
Reduce: Small Business Assistance Program: Grant Finalized in FY22-4500000.00
Multi-program adjustments, including negotiated compensation changes, employee benefit changes, changes due to staff turnover, reorganizations, and other budget changes affecting multiple programs.56480.00
FY23 Recommended39963251.00