Montgomery County Councilmembers unanimously approved a $20 million allocation to “jumpstart the local economy,” explained Council Vice President Kate Stewart Tuesday.
With 25,000 fewer jobs throughout Montgomery County than in September of 2019, councilmembers are seeking ways to lure businesses here.
The JOBS – Jobs, Opportunities and Business Support – Initiative is designed to create up to 1,000 jobs, especially in equity focused areas along the I270 and Route 29 corridors and eastern downcounty.
It includes a $10 million job creation fund giving employers $10,000 for new jobs created with a salary of at least $100,000. The employer would get $12,000 per job.
The employer would have to create a minimum of five jobs with a $100,000 salary. The amount employers could receive would be capped at $500,000 per company.
According to Council President Andrew Friedson, for every job that pays $100,000, the area’s economy receives a $470,000 boost. “It’s over a four to one investment.”
The $7 million innovation fund awards up to $100,000 to companies developing innovative technology, design or process. It is designed for prototype development and pilot projects so county entrepreneurs could more easily move to commercialization.
The $3 million equity fund provides grants of up to $80,000 for early and growth-stage small businesses with owners from equity focus areas to help reduce their economic barriers to success.
Giving out all the money in the funds would create about 1,000 jobs and generate about $160 million in additional income, according to Friedson.
This initiative sends a message, according to Friedson. “If you want to invest in Montgomery County, Montgomery County wants to invest in you.”
Councilmember Evan Glass questioned why the funding was being included in the Fiscal Year 2024 budget when the money won’t be spent until Fiscal Year 2025.
He argued money from the reserves could be better used now to improve public school buildings. And he added the county already has similar programs “on the books.”
Councilmember Sidney Katz countered, “We need to send the message as quickly as we can” that the county is open for new business. “The sooner we start, the faster the bureaucracy can move.”
