‘Small Business Plus’ is a new program to boost business activities. So far five banks have been selected to participate. The five banks chosen for disbursing money to small businesses are Capital Bank of Rockville, OBA Bank, EagleBank, Monument Bank and Congressional Bank.
The government is going to fund these banks under the new Small Business Plus program. A total of $10 million will be given out to banks and in return they will lend double the grant money amounting to $20 million to small business owners. The conditions imposed are participating banks should be headquartered in Montgomery, and hold $200 million to $5 billion in assets.
Within 12 months of the deposit, loans should originate. It is covered by Federal Deposit Insurance Corp. The country shall make an annual report so as to document the lending activity and create new jobs. This new investment vehicle will inevitably create a competitive rate of return for the country. The Community bank’s needs shall get addressed well and local businesses will also find support.
Recently, Joseph Beach, Montgomery County Finance Director, met community banks so as to identify short-term investments. Beach is really concerned about banking services that community banks lack as they are absolutely essential to manage the money. With the Small Business Plus program, the country is in a position to make short term working capitals available to banks.
This article was submitted by Raj Tulshan, Director of Business Development of Biz2Credit. Biz2Credit is a small business marketplace that connects entrepreneurs with financing options and advice to grow their business. Send all questions to email@example.com