Montgomery County committee approves $1.7M for small business support funding strategy

On July 14, 2025, the Montgomery County Economic Committee convened to discuss significant changes in funding strategies for small business support services. The meeting highlighted a shift from a traditional non-competitive funding model to a more dynamic competitive grant process aimed at enhancing support for local entrepreneurs.

The county executive initially proposed a modest 3% inflationary adjustment for the Non-Departmental Account (NDA), totaling $1,713,075. However, as discussions progressed, it became clear that a new approach was necessary. The committee agreed to allocate $1.7 million for the NDA, which would now include a competitive grant process alongside non-competitive awards to existing contractors. This change reflects a broader strategy to evaluate and potentially adjust funding amounts based on contractor performance.

A key aspect of the new funding model involves the distribution of $1,357,000 for non-competitive awards, while an additional $150,000 is earmarked for business support services targeted at federal contractors. Another $150,000 will be allocated for cohort training aimed at assisting small businesses. The committee emphasized the importance of transparency and requested updates from county executive staff before any funds are disbursed.

The meeting also underscored the need for improved communication regarding the roles of the council and the administration in shaping these funding initiatives. The county executive acknowledged past messaging that inaccurately suggested the council was solely responsible for setting funding amounts, clarifying that the administration had been actively involved in discussions and planning.

In addition to the funding allocations, the committee explored the potential for networking events to foster connections between small businesses and county leadership. This initiative aims to enhance collaboration and support for local entrepreneurs, recognizing the critical role that networking plays in business growth.

Overall, the discussions at the ECON Committee meeting signal a significant pivot in how Montgomery County plans to support its small business community. By embracing a competitive grant process and focusing on performance-based funding, the county aims to create a more effective and responsive support system for local businesses. The next steps will involve finalizing the details of the grant processes and ensuring that all stakeholders are informed and engaged in the upcoming changes.