County Government to Make Small Business Loans

The recently approved a $1 million small business revolving loan fund in a 3-2 vote.

Commissioner Doug Howard said the fund will fill a lending gap as it's very difficult for small businesses to secure loans in the current economic landscape. He said the fund would provide startups with dollars to grow their business and establish credit so that they will eventually be able to get commercial loans.

Commissioner Robin Frazier voted against establishing the loan fund, arguing that "government shouldn't be a bank." She said that it's risky to loan government money to businesses that have been denied funding from established lending institutions.

One of the loan criteria is that applicants must have a loan denial letter from an established financial institution.

The Maryland Department of Business and Economic Development (DBED) provided half of the assets for the fund; the other half comes from the Carroll County Department of Economic Development Infrastructure Account.

Economic Development Administrators Jon Weetman and Jack Lyburn presented the loan criteria at an open meeting last Thursday.

According to Weetman, a three member committee will review and approve the loan applications. The committee will be comprised of the Administrator of Carroll County Economic Development, a member of the banking industry with loan approval and processing experience and a member of the business community.

Loan applicants must be participants and the maximum loan amount considered will not exceed $25,000, Weetman said.

“Small business is the engine that drives the American economy and is essential in getting folks back to work. This program will help make that happen in Carroll County,” said Commissioner Haven Shoemaker.

Commissioners Howard, Roush and Shoemaker voted in favor of the fund while Commissioners Rothschild and Frazier voted in opposition.

Watch the video of the discussion and vote on the Carroll County government website.

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