Leggett Announces County Participation in “Small Business Plus!” Program with Local Community Banks Leverages $100 Million in New Private Small Business Loans, 350 Jobs in 2015

For Immediate Release: Monday, April 25, 2016

County Executive Ike Leggett today announced that during 2015 nearly $50 million deposited by the County in County community banks in the “Small Business Plus!” program was leveraged nearly $100 million in new private small business lending and directly created 352 jobs

 

The program, first established in June 2012 with an initial $10 million County commitment, represents a unique 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.

 

 “This partnership with community banks boosts lending to local businesses to create new jobs and improve the County’s economy,” said County Executive Leggett.

 

“This is an opportunity for Montgomery County to do ‘well’ -- and do ‘good’ at the same time,” added Leggett.

 

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 $10 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. The banks must make loans to County based businesses of at least 200% of the amount of funds deposited by the County. 

 

The banks which partner with the County are Capital Bank, Congressional Bank, and EagleBank.

 

“We are very pleased to see the continued success of the Small Business Plus! Program, in which the County has truly partnered with local community banks”, stated Ronald D. Paul, Chairman and CEO of EagleBank. “We are proud to have been among the founders of the program, which facilitated the creation of over 350 jobs during 2015. The small business activity and jobs created through this program are an important stimulus to the economy of Montgomery County.”

 

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Release ID: 16-439
Media Contact: Patrick Lacefield 240-777-6507