Gap Financing Available for Businesses in One of County's Four Sustainable Communities

The State of Maryland developed a program in 2010 with the Sustainable Communities Act, where public and private investments and partnerships help develop healthy economies with growth practices that conserve resources and appreciate historical and cultural resources. Since that time, the State has designated four Sustainable Communities in Frederick County: City of Brunswick, Town of Emmitsburg, Town of Middletown and the Town of Thurmont.

The State of Maryland's Neighborhood BusinessWork's loan progr​am provi​des gap financing, i.e. subordinate financing, to new or expanding small businesses and nonprofit organizations in Sustainable Communities throughout the State.

ELIGIBLE PROJECTS & USES OF FUNDS

• Mixed-use projects combining residential and ​commercial uses in the same ​building
• New construction or rehabilitation​​
• Machinery and equipment
• Certain other costs associated with opening or expanding a small business
• Real estate acquisition
• Manufacturing
• Service providers
• Retail

PROJECT CRITERIA

• Project must be located in a Sustainable Community
• Project viability and potential impact on the neighborhood
• First floor business or retail space use that generates street level activity in mixed use projects
• Improvements to a vacant or under-utilized building or site
• Readiness to proceed
• Cash flow and collateral

Priority is given to projects that strengthen neighborhood commercial districts and are part of a greater revitalization strategy. The following types of projects and activities will not be considered for financing:

• Residential or transient living facilities (other than mixed-use projects described in eligible projects section)
• Facilities such as community halls, fire stations, hospitals, colleges or universities
• Adult bookstores, adult video shops, other adult entertainment facilities, gambling facilities, gun shops, liquor stores, massage parlors, pawn shops, tanning salons, or tattoo parlors

LOAN TERMS

• Loan amounts up to $500,000 or 50% of the total project costs, whichever is less
• Interest rate is based on an underwriting analysis
• Target loan term is five to 15 years, depending on use and loan amount
• Minimum five percent applicant cash contribution is required (based on total new project cost)
• Personal guarantees and collateral are required
• No prepayment penalties

To apply, please visit http://dhcd.maryland.gov/Business/Pages/NBW.aspx

Frederick County Government Introduces Small Business Loan Guarantee Program

The Frederick County Office of Economic Development, with support from County Executive Jan Gardner, is pleased to introduce a Small Business Loan Guarantee Program (SBLG) for existing and aspiring small businesses in Frederick County. The initial funding of this program will be provided by the existing funds remaining from the Frederick County Revolving Loan Fund, which stopped issuing new loans in 2011. “This is another way of showing that Frederick County means business,” County Executive Gardner said Thursday. “We support our small businesses and want to give them the help they need to succeed.”

Frederick County Office of Economic Development Director Helen Propheter added, “The end goal is to create more jobs in Frederick County, support jobs that pay family supporting wages and provide more local job opportunities. This program is another tool in our toolbox that helps us achieve these results.”

The purpose of the SBLG is to provide financing assistance for growth-related expansion projects for existing businesses and for aspiring entrepreneurs, the loan guarantee can be used for real estate, refinancing secured debt, machinery & equipment and working capital. The SBLG provides up to an 80% loan guarantee with a commitment capped at $50,000. There is no loan amount maximum and the terms and interest rate are to be determined by the lender that the business is working with.

In order to maximize resources, the business must be located in Frederick County or agree to locate within Frederick County prior to settlement and must be a start-up or early stage for-profit company with 100 or fewer employees.  Borrowers must provide at least 5% equity and preference is given to Frederick County’s targeted industries or high growth industries.

The program will be administered by the Frederick County Office of Economic Development and managed by a volunteer-driven Loan Guarantee Committee . Lenders will serve as the primary contact for prospective Frederick County Small Business Loan Guarantee clients. The SBLG requires that an applicant be approved for conventional bank financing contingent upon a loan guarantee before applying for the SBLG. For more information, including administrative guidelines and a Small Business Loan Guarantee Application, click here or call the Frederick County Office of Economic Development at 301-600-1058.

McClintock Distilling Selected to Participate in Congressional Reception

America's Small Business Development Center (SBDC) will host the America's SBDC Client Showcase & Reception on Capitol Hill on February 1, 2016 and selected to participate in this year's event is Frederick's own McClintock Distilling. The company is among just eleven invited SBDC clients nationwide.

McClintock Distilling, slated to open in Downtown Frederick this year, is a craft distillery producing gin, white whiskey, rye whiskey and bourbon. They are a sustainable distillery that is wind-powered, designed on a closed loop system and recycles all grains. All products are certified USDA organic, additive free and hand inspected by their head distiller. The new distillery will feature an expansive tasting room and production area. The 5,000 square foot building will also be available for booking events and receptions.

The goal of the America's SBDC Client Showcase & Reception is to demonstrate the successes of state and regional Small Business Development Center Networks. The Western Maryland SBDC and the Frederick Office helped their business dream become a reality by providing training and financial models to help secure a business loan. They also attended seminars hosted by SBDC and received training on marketing, sales, building a business plan and fundamentals of building a business.

The mission of America’s nationwide network of SBDCs is to help new entrepreneurs realize the dream of business ownership, and to assist existing businesses to remain competitive in the complex marketplace of an ever-changing global economy.

SBDC assists existing and prospective business owners in three basic ways:

• Training - Regular SmartStart seminars, as well as periodic special-interest programs, and participation in educational programs presented by other business support agencies and non-profits.
• Counseling - Free one-on-one counseling on a variety of business topics.
• Maximization of Resources - Providing information about and access to specialize assistance and resources from other local business support providers.

Since FY2011, the Frederick office of the SBDC has helped 46 businesses start-up and has helped create 192 jobs. Counseling over 514 clients from FY2011-FY2015. The Frederick office is the busiest SBDC in the Western Maryland region. Visit the website to learn more.

Economic Census Data Released Shows County’s Asian-Owned Businesses Increasing Faster than Other Minority-Owned Businesses

This data summary is Part 1 of 3 summaries on the Economic Census Survey of Business Owners released on December 15, 2015.

Frederick County’s percentage of minority Asian-owned businesses increased faster than any other ethnic group since 2007. According to the data from the Economic Census Survey of Business Owners conducted by the Census Bureau every five years released on December 15, 2015, Asian-owned businesses represent a 68.9% increase since the last Economic Census in 2007. Within that subset, Chinese-owned businesses represented a 302% increase.

While both Hispanic and Asian-owned businesses experienced a large increase from 2002-2007, in 2012 both ethnic groups increased slower compared to 2007 results. From 2007 to 20012, Black or African-American-owned businesses increased 5.6% and Hispanic-owned businesses increased 25.6% compared to 186.8% from 2002-2007 and 169.9% from 2002-2007, respectively.

Women-owned businesses increased at 8.2% from 2007-2012, compared to 45.8% from 2002-2007.

How to Start a Business in Frederick County Brochure Now Available

The Frederick County Office of Economic Development (OED) has created a Road Map to starting a business in Frederick County, MD. The brochure, produced in partnership with the Small Business Development Center and in consultation with the Frederick County Department of Permitting, outlines the steps to consider when starting a business along with contact information and websites for appropriate resources.

The brochure is part of the OED's toolkit for small business assistance and is part of a larger initiative to increase support for small businesses and municipalities in 2016. Brochures will be distributed to municipal main street organizations and are also available to download here.

The Frederick County Office of Economic Development's mission is to increase the overall economic health of Frederick County through attracting new businesses in our targeted industries and helping existing businesses be more successful.

GROW: Volume 9

This series is part of a monthly blog series about Frederick County businesses that grow and expand. It is a snapshot of Frederick County business success stories. Check back each month for more businesses that grow in Frederick County or read volumes 1-8.

National Cancer Institute (NCI) at Frederick

The NCI at Frederick is a community of more than 2,800 government and contractor-employed staff who work at several cancer research facilities including the 68-acre campus at Fort Detrick, the Advanced Technology Research Facility, the Vaccine Pilot Project and others.

The Frederick National Laboratory for Cancer Research was established as the Frederick Cancer Research and Development Center in 1972 when about 70 acres and 67 buildings of the U.S. Army were transferred to the U.S. Department of Health and Human Services (HHS), which includes the National Institutes of Health (NIH). Since then, the NCI at Frederick has become an internationally recognized center of scientific excellence. This has been the result of the coordinated efforts of Government scientists and NCI-Frederick contractors working to achieve rapid progress in the race to cure cancer and AIDS.

In 1975, the National Science Foundation notified DHHS that NCI-Frederick met criteria for and was designated as a Federally Funded Research and Development Center. The Frederick National Laboratory for Cancer Research (FNLCR) is operated by Leidos Biomedical Research, for the National Cancer Institute (NCI) at Frederick, for the National Institutes of Health (NIH). The Frederick National Lab has a staff of 1,850 who are employed by Leidos.

The Advanced Technology Research Facility (ATRF) is a new, 330,000 square foot translational R&D facility located in Frederick, MD, consisting of advanced technology laboratories, biopharmaceutical development, and production facilities. The facility is designed to foster co-located partnership projects, with dedicated laboratory and “think tank” space for collaborative work with partners across a continuum of translational R&D technologies and platforms.

AGV Sports Group

AGV Sports Group was founded in Frederick in 1978 where they began designing and developing safety apparel for motorcycle road racing and sport use. In 1985, AGV licensed AGV Sport to make their own apparel and other products including leather gloves, suits, jackets, boots, and textile garments. AGV Sport products have consistently won best in class awards from numerous motorcycle publications around the world. AVG has grown to 10 employees since 1985 and has an annual revenue over a $1.5 million.

McCutcheon Apple Products

McCutcheon Apple Products was founded in 1938 by William O. McCutcheon, his son Robert J. McCutcheon and Robert’s wife Helen. Together, they purchased an apple press for $25 and acquired a small corner of property in downtown Frederick. They began custom pressing apples for local farmers. As the years went on, they began to make apple butter and apple cider under their own label. In the 1950’s they expanded with the construction of modern buildings to house their operations.

In 2007, McCutcheon's announced plans to expand with a 34,000 SF addition to house demonstration, new retail and other entertainment.  Once the final phase of the Carroll Creek expansion is completed, the expansion would also include a water wheel and five-story observation tower.

Today, they produce and sell preserves, jellies, fruit butters, ciders, BBQ sauce, and much more manufactured from their current 75,000 SF facility. The products can be purchased in their factory store, at farmers markets across the country, and online worldwide. McCutcheon Apple Products has 25 employees and is still a family business, operated by the fourth generation of the McCutcheon family.

Annual Business Reception Honors Business Leaders and Highlights Year of Positive Growth

Five innovative businesses were honored for their emerging technologies at the Frederick County Office of Economic Development's (OED) Annual Business Reception in front of over 200 guests this evening at Dutch's Daughter. The Office hosts the business reception each year as a way to business leaders and to thank partner agencies for the year's accomplishments.

OED Director Helen Propheter said, "Great things get accomplished with great companies who have bold, new ideas" and for them, they were honored. The 2015 Frederick County Business Leaders are:

• Patriot Technologies, named one of the world's Hottest CyberSecurity Companies by CyberSecurity 500.

• RoosterBio, Inc, a stem cell manufacturing company and product of Frederick's biotech incubator Frederick Innovative Technology Center, Inc (FITCI). 

• Welocalize, recognized for the 11th consecutive year as a Fastest Growing Company by Inc. 5000.

• American Association for Laboratory Accrediation (A2LA), the only independent, non-profit, internationally-recognized lab accreditation body in the U.S. and headquartered in Frederick.

• GlamourView Farm who blends agriculture and technology in new ways with robotics.

From L to R: Helen Propheter, Director, Frederick County Office of Economic Development; Jan H. Gardner, County Executive, Frederick County Government; Gene Iager, Owner, GlamourView Farm; Roxanne Robinson, VP & COO, American Association for Laboratory Accreditation (A2LA); Steve Keefe, President, Patriot Technologies, Inc; Jon Rowley, Chief Executive & Technology Officer, RoosterBio, Inc; Bud Otis, Council President, Frederick County Government. Not pictured: Smith Yewell, President & CEO, Welocalize.

Reflecting on 2015 as a year of positive growth for the department with a new name change and the move to 118 N. Market Street to create the new Downtown Innovation Center, Director Helen Propheter said, "The momentum is happening locally but also at the national level," pointing to a list national accolades received by Frederick County. She said new programs, business incentives and positive economic indicators were highlighted as evidence of a strong, local economy. Job growth in Frederick County has increased by seven percent and unemployment is down 2% since 2011. "Ninety percent of companies we visited this year said they expect business in 2016 to continue to improve. That's evidence of a growing economy," said Ms. Propheter.

There are several new projects on the horizon for 2016 including a Small Business Loan Guarantee, Small Business Tax Credit and expanded and revitalized agribusiness programs for the Frederick County Office of Economic Development. To view the video of award winners and the evening's presentation, please click here. To view more photos from the event, check out the photo gallery on OED's Facebook page. Videos are also available on OED's Youtube Channel.

The 2015 Frederick County Annual Business Reception was sponsored by Gold Sponsors: CorpOHS and Miles & Stockbridge. Silver Sponsors were Frederick County Bank, Sandy Spring Bank and Swift Systems. Bronze Sponsor was FCG TV.