Prince George?s business executives have mixed feelings about the county?s new $50 million Economic Development Incentive Fund, which began taking applications Thursday.
More than 250 people attended an information session Wednesday at Eleanor Roosevelt High School in Greenbelt to hear the county?s economic officials discuss how the fund will work.
The fund — the economic development centerpiece of County Executive Rushern L. Baker III (D) and approved by the county council last year — commits $50 million to business projects that boost economic development and employment in the county.
?I think it?s a good opportunity and I have interest in trying to utilize it. My concern is that small businesses don?t get cut out,? said Yrico Alexander, COO of Aries Enterprises in Upper Marlboro, an environmental services company. ?This could potentially level the playing field.?
The money will been distributed over several years, from about $7 million to $11 million annually. Most will be in loans, although the county may reward grants in extraordinary circumstances involving a larger number of jobs in competitive situations. Priority will be given to projects that maximize local minority business enterprises and projects that provide county jobs, as well as transit-oriented development, international projects and projects with key county economic impact, according to county officials.
?Prince George?s County is the economic engine of the Washington metropolitan region,? Baker said. ?The thing we were missing is having people look at us. That?s what this fund is about.?
Many Prince George?s residents commute elsewhere to work: As of 2009, the county?s ratio of jobs to residents was about 35 percent, while neighboring counties were closer to 45 percent or 50 percent. The county also had fewer jobs in 2011 than in 2000, with slightly fewer than 300,000 last year compared with 300,000 a decade ago, despite a significantly larger population.
The new fund involves a 15-step process, a portion of which will be on administrative levels after a loan is closed. The steps start with an application and review from the county?s Economic Development Corp., credit underwriting with the county?s Financial Services Corp. and an administrative review. Most loans should be processed within 90 days, according to county officials. Loans also include an application fee equal to 1 percent of the loan amount.
Shelley Gross-Wade, CEO of the Financial Services Corp., said that if businesses do not qualify for the fund, the county will help them explore other funding opportunities.
She said the county is looking to see what other funding the project includes, so it can best leverage its loans. Loans will be based on projected job creation.
Alexander already is looking to fund a project that could grow Aries from 15 employees to 35.
?I want to see this handled differently than other opportunities in the past,? he said of the fund.
?Anytime you have money available for small business, it makes sense,? said Michael Dupye, whose Baltimore business MABD Direct consults small-business clients in Prince George?s. ?You have to get people in the position to access the money.?
Others still have concerns.
Stephanie Johnson, CEO of the Hair Care Co. in Camp Springs, said she thinks the county is trying its best to help small businesses.
?I don?t think $50 million is enough,? she said, adding that if the fund can help 100 businesses, that will still be helpful.
She also expressed concern about the collateral that businesses need to match the funding base, questioning whether it was accessible to small businesses.
?I don?t think it?s really providing the necessity that?s needed,? said Deirdre Young, president of Green Leaves Eco Place, a nonprofit in Clinton. ?At some point, you have to give new business opportunities. There?s a lot of stringencies. You need to have a few where you give people an opportunity to show what they?re capable of.?
Young particularly took issue with how the fund allows a nonprofit to use its money only to grow its revenue base, not to defray operating costs, and its focus on existing businesses, rather than startups.
But Najah Ishman, COO of the upcoming Suitland Technology Center, said she was not discouraged.
?In terms of what we?re trying to do in Suitland as far as economic development, we could be the catalyst for that. This can definitely help,? Ishman said. ?I think you have to have a plan. Partnerships and collaborations are huge.?
lrobbins@gazette.net
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