Politics & Government

Baltimore County Expands Small Business Loan Program

Middle River-based Colliflower Inc. is just one of many local businesses that have benefited from the program, which was established in 1996.

Hunter Cochrane said his hoses and hydraulic fitting business, Colliflower Inc., was busting at the seams at its Yellow Brick Road facility in 1998.

Back then, the company was located in a 3,000-square-foot building and employed 16 people. Cochrane knew that for his business to continue to grow he would need a new location for his corporate headquarters. So, he turned to the Baltimore County Small Business Loan Partnership for help.

With a small business loan through that program, Cochrane was able to build a 15,000-square-foot facility along Pulaski Highway in Middle River and now has 30 employees working at the site. That expansion, Cochrane said, would not have gone as smoothly without the assistance of the program.

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Colliflower, which now has 18 locations serving Maryland, Georgia, Pennsylvania and Virginia, has been in business since 1951. It originally started in Ellicott City before moving to Baltimore County in the 1970s.

“It allowed us to focus on growing our business instead of concentrating on operating expenses,” said Cochrane, the company's president, whose family has owned the business for more than 30 years. “We control our own destiny now.”

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Baltimore County, along with several banks in the area, hopes to help other local small businesses grow in a similar matter. County Executive Kevin Kamenetz announced that an additional five banks have joined the public-private partnership, bringing total commitments to the loan fund to $12.35 million from 20 financial institutions.

The partnership, established in 1996, works by helping small businesses— currently located or with plans to locate in Baltimore County—obtain fixed rate loans on favorable terms. Loans from this fund only require 10 percent equity, which frees up capital for additional investment by participating businesses.

To qualify for the program, companies must employ less than 100 people at the time of application. Also, the maximum loan amount is 40 percent of total project cost or $500,000, whichever is less, according to a release.

In addition, the Baltimore County Department of Economic Development and Small Business Resource Center offer support throughout the loan process, ranging from identifying qualifying investments to helping those seeking assistance update their business plans.

“Government and businesses can’t work in a vacuum,” Kamenetz said. “We have to find ways of working together.”

Those banks in the partnership said programs like this are vital in helping spur economic development as current conditions often make it difficult for small businesses to obtain additional credit to expand and hire new employees.

“Programs like this allow banks to fill in the gaps for businesses looking to grow during these tough economic times,” said Bill Chalfant Jr., senior vice president for commercial lending with TD Bank. “This is a long-term stable fund that allows banks to loan more money and lowers the risk to the participating institutions.”

For more information about the loans, call 410-887-8000.


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