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Strong and Prosperous Businesses

Increase infusion of growth capital to Howard County companies

$10,740,000 

FY23 Actual

FY22 Actual
$3,570,000

Objective Description

The Howard County Economic Development Authority (HCEDA) aims to enhance the utilization of growth capital, aiding in company expansion, workforce development, and investment in the county. This capital fills funding gaps for growing businesses, bolstering the region's attractiveness. The Catalyst Fund offers up to $500,000 in affordable financing to growth-oriented businesses, while the newly launched LIFT Fund provides microloans up to $30,000 for early-stage businesses, coupled with business coaching and training. These HCEDA funds target small, minority, woman, and veteran-owned businesses, traditionally underserved by conventional financial institutions. Additionally, the Howard County Agricultural Innovation Grant offers grants between $1,000 and $10,000 for agricultural producers to innovate, expand or diversify. All of these HCEDA funding sources can also be leveraged for further investment from other sources.

Trend Analysis

In FY 2022, there was an increase in competition from local bank lending programs. On multiple occasions, banks were able to provide more competitive loan terms than the catalyst fund. However, as the goal of the Catalyst Fund is to serve underbanked businesses, it was seen as a net-positive that our prospective clients were being served by commercial lenders. In FY 2023 and 2024, HCEDA expects to see increased activity due to increased rates at banks. Additionally, HCEDA has increased its staffing capacity to promote the program.

Strategies

  • Continue to integrate education on growth capital opportunities into all business support activity.
  • Increase promotion of Catalyst Fund, LIFT Fund and Agriculture Grant success stories through marketing channels to expand awareness.
  • Provide finance support to small businesses that could otherwise not access capital.

Source: Howard County Economic Development Authority

References

Target = 8,000,000

Detailed Analysis


Howard County, Maryland

George Howard Building
3430 Court House Drive
Ellicott City, MD 21043 

dash@howardcountymd.gov


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