Montgomery County SMALL BUSINESS DEVELOPMENT …€¦ · specific customer issues and identify and...

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Montgomery CountySMALL BUSINESS DEVELOPMENT

STRATEGIC PLANJUNE 28, 2019

Montgomery CountyMaryland

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Small Business DevelopmentSTRATEGIC PLAN, FY2020 - 2024

Montgomery CountyBUSINESS SOLUTIONS GROUP

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www.montgomerycountymd.gov/Biz



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Turn the Curve – Small Business ServicesThe County Executive’s Transition Team Report noted that Montgomery County’s high wealth and low unemployment rates mask economic disparities as well as other warning signs, such as slow business growth and problems with office vacancies. Maintaining and improving our quality of life depends on a strong local economy. We need to have a business-friendly attitude and incubate the next generation of job creators.

“A Growing Economy” is a priority for the County Executive and the first key indicator for this priority is the Number of Net New Businesses

About this Indicator: The Number of Net New Businesses is the annual number of private business establishments in the County as reported by the U.S. Bureau of Labor Statistics subtracted from the prior year’s number. The level of employment by non-farm proprietorships is reported by the U.S. Bureau of Economic Analysis.

1. How are we doing?

While the overall number of private businesses has remained fairly constant since the 2011 baseline year, we have seen a decline in 2014 and 2015 from which we have only started to recover. At the same time, the number of sole proprietorships in the County has been steadily increasing year over year, making up a growing share of total employment.

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The story behind the curve?

Positive Factors • The County’s workforce. Montgomery County boasts a large, well-educated, and diverse workforce. • Infrastructure and proximity. New and expanding businesses are attracted by a good transit system,

proximity to Washington, D.C., access to numerous federal agencies and several multinational corporations.

• Financial strength. County government with a AAA bond rating and access to capital and loans through a variety of institutions.

• Strength in Diversity. Our diverse, entrepreneurial, and innovative immigrant population is a largely untapped asset, bolstered by the County’s welcoming attitude towards immigrants. In FY18, the County purchased 23.5% of eligible goods and services from MFD (Minority, Female, Disabled)-owned companies.

• Process improvements. The County has implemented several initiatives to improve the business climate including:

o Streamlining of the Permitting Processo Improvements to Procurement programs designed to level the playing field for local small,

minority, woman and disabled-owned businesses.o Building the Montgomery County Business Portal to improve access to information.o Digitizing more than 100 forms filled out by businesses interacting with County Government.

Negative Factors • Regardless of the actions taken, there remains a persistent perception that Montgomery County is

not business friendly. Contributing to this perception:o The cost of doing business. The costs of purchasing or renting space, parking, equipment,

taxes, hiring talent in a tight labor market, and other needs add up quickly, especially for small businesses.

o Difficulties working with the County government. Businesses complain that is it difficult to work with County Government, citing unfriendly permitting and regulatory processes, a lack of clear and consistent guidance for understanding and navigating all the business apparatuses (MCEDC, Workforce Montgomery, Small Business Navigator, etc.), no emphasis on timeliness and transparency, and a general sense that the County’s business environment is not cohesive, solution-oriented or welcoming enough to people who want to set up shop here. In addition, regulations that must be adhered to can be burdensome, and zoning restrictions can limit potential location opportunities.

o Create a minority and female grant program to provide access to capital for residents to start and/or grow their local businesses.

o A lack of transparency and access to County procurement opportunities. Although the County has focused on this issue for years, local small businesses remain discouraged and mistrustful, as evidenced by stagnant numbers of businesses registering for the Local Small Business Reserve Program or the Minority, Female, Disabled owned businesses (MFD) program.



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What strategies do we recommend to turn the curve?

1) Articulate a culture of business opportunity in Montgomery County. • Develop and promote a distinct business “identity” for the County. • Create a “culture of yes” within County Government. • Build a culture of innovation and entrepreneurship for small businesses, utilizing government, media,

and large businesses. • Provide more and better marketing for the County and our existing businesses of all sizes, emphasizing

the value proposition of Montgomery County. Create an easy to find and use directory of all available resources and ensure County employees are aware of where to direct inquiries.

2) Streamline resources and processes related to doing business with the County. • Benchmark county permitting regulations against competing jurisdictions and eliminate unnecessary

regulations. • Everyone from small businesses to major corporations should know where they can go for correct and

consistent answers. • Put small business advisors and procurement specialists in the Regional Service Centers.

o Reposition the Business Solutions Group (BSG) to work closely with the Regional Services Center directors, business associations, and chambers of commerce to bring business support services closer to the business community.

The BSG will continue to support businesses interacting with County government by providing one-on-one business counseling sessions, explain State and County laws impacting businesses, and highlight business resources available throughout the County.

The BSG will continue to assist businesses with navigating County laws, licensing, permitting, procurement, and help improve communication with County departments and agencies.

The BSG will serve in an ombudsman role to the business community to help problem solve specific customer issues and identify and resolve systemic issues.

3) Support minority/immigrant businesses and fully understand their value. • Improve, expand, and/or collaborate with non-profits, other public agencies, banks, and credit unions

to increase services and support to immigrants and minorities entrepreneurs and small businesses. • Implement inclusive economic development: Differentiate and customize the approach towards

minority-owned businesses. Place a greater emphasis on encouraging and supporting women-owned businesses. Consider giving under-represented groups points in the procurement process.

4) Enhance County incubators. The County is conducting anincubator study and would fully implement therecommendations of the study after stakeholderconsultations. The goal of the study is to look attypes of innovative incubator and acceleratornetworks throughout the country and identify models that may work in the County’s businessecosystems.



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5) Provide better/more support for the local economy. • Urge residents and businesses to buy and hire local. • Leverage regional projects (Purple Line, Amazon HQ2) to support business development and retention

here. • Assist small businesses that might otherwise fail when revenue is lost as a result of County construction

projects (e.g., Expand the current Small Business Assistance Program in Wheaton related to the Purple Line to other locations).

• Create a small business advisory council. • Give small businesses more access to capital and the County’s open/vacant spaces. • Connect entrepreneurs and small businesses to Montgomery College and external, non-profit

mentoring programs to incubate or accelerate innovative start-up businesses and foster a climate of new entrepreneurship in the County.

• Use tax policy to attract and encourage small businesses (e.g., Implement tax credit policies to assist and encourage small business growth).

The following pages lay out the Montgomery County Small Business Strategy to improve County processes and address gaps in the small business ecosystem.



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From Talk to ActionAs noted, County Executive Marc Elrich has identified “A Growing Economy” as a priority outcome for his administration. Helping small businesses begin, grow, and thrive is a cornerstone of this priority. This strategic plan addresses three major areas of focus to “turn the curve” and create an environment where small businesses have the best opportunity to succeed. The Small Business Development Strategic Plan is designed to deliver immediate, mid-range and long-term results with tangible outcomes and clearly-defined metrics of success.

The first critical area is Improving Access to Capital, Information and Procurement Opportunities. All businesses need capital to start and grow. This plan will explore ways to ensure that the County plays a role in making capital accessible in a manner that is also equitable for all members of the business community.

Businesses also must be able to easily access information about County processes, rules, and regulations that directly impact their operations. This plan explores ways to increase awareness of the Montgomery County Business Portal and enhance this valuable business resource.

One economic development tool available to County government is its procurement policy with respect to locally owned and/or are minority, female or disabled-owned businesses. This plan addresses methods for ensuring that Montgomery County procurement programs level the playing field and are running as effectively and efficiently as possible.

This strategic plan focuses on Enhancing Business Services through two initiatives. 4Business -- Benchmarking to Be the Best for Business – is engaging the business community to identify areas where the county can be more business friendly and will benchmark county regulations and processes against other jurisdictions to ensure we are not placing an undue burden on our businesses. Incubators and Innovation locations allow small businesses the space and support training, access to mentors, information on entrepreneurship best practices, etc. to grow their ideas into the real world. The County will reassess its assets, define its vision, and create a better environment for creativity to thrive.

Finally, this strategic plan defines a framework for Improving Business Processes including the procurement and internal business services. Making more opportunities available through the County’s procurement programs is only effective if the process itself is efficient. The plancalls for a comprehensive review of the existing processto identify ways to streamline and improve. In addition, the business community will benefit as the County enhances organizational collaboration and communication within and between County Departments that interact with businesses.



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As an engaged member of Council over the past 12 years, new Montgomery County Executive Marc Elrich has listened to the local business community regarding their experiences with doing business in the county. The County Executive’s directive to the new administration is to have a business-friendly attitude and incubate the next generation of job creators. His sense of urgency inspired him to identify “A Growing Economy” as one of the administration’s top priorities including increasing the number of net new businesses.

County Executive Elrich has identified several areas of focus to help grow the economy based on feedback from businesses. These include examining the County’s regulations to ensure they are sensible, fair and efficient; increase minority, female, and disabled-owned (MFD) small business access to capital; establishing business resource hubs in the County’s Regional Services Centers to geographically distribute services; and developing an incubator and innovation climate to help local entrepreneurs bring their ideas to market.

Current Resources • The Business Solutions Group (BSG) supports the local business community by providing information

on County regulations, policies and processes on a frequent basis. The BSG is the dedicated resource accountable for ensuring execution of the goals outlined below.

o The BSG comprises the Small Business Navigator and two Business Liaison Officers. The Council approved two additional positions to expand capacity of the Regional Services Centers.

• The BSG will partner with Regional Service Center Directors as well as County Departments that interact with the business community. See Exhibit 1 for a listing of these departments and a description of their interactions with the business community.

• The Business Solutions Group will partner with Urban Districts where they are available to coordinate activities, communication and business support services.

• Partnerships with educational institutions including Montgomery County Public Schools, Montgomery College, the Universities of Shady Grove, Johns Hopkins and others will be leveraged in support of innovation and entrepreneurship.

Being business friendly is especially critical to our small businesses who need the most assistance. The Montgomery County Code defines a small business under the following criteria:

BUSINESS TYPE EMPLOYEE LIMIT PRIOR 3 YEARS’ AVERAGE SALES

Retail 30 OR $5,000,000

Wholesale 30 OR $5,000,000

Services 100 OR $10,000,000

Construction 50 OR $14,000,000

Manufacture 40 OR $14,000,000



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GOAL: IMPROVE ACCESS TO CAPITAL, INFORMATIONAND PROCUREMENT OPPORTUNITIES 1) Improve Access to Capital

Montgomery County will support the local small business community by expanding the suite of funding and financing options to provide businesses with access to capital they need to start and expand. Since the recession ended, small business loans trail big business loans and there are fewer community banks making low dollar loans. In order to grow the economy, entrepreneurs, and startups, the County will: o Inventory existing sources of County funds available to businesses.

Economic Development Grant and Loan Program – financial assistance to private employers who retain jobs or stimulate new job creation in Montgomery County.

Microloan Program – partnership with local non-profit organizations to provide small loans to residents to start or expand a business in Montgomery County.

MOVE Program -- grant to businesses leasing space in the county for the first time. SBIR/STTR Matching Grant Program -- match for companies that have been awarded an

SBIR or STTR grant from the National Institutes of Health (NIH).Small Business Revolving Loan Program -- Direct loans, or participation in loans made by

financial institutions, to small businesses in Montgomery County.Small Business Plus! -- Partnership with community banks that focus on lending to small

businesses in Montgomery County.Small Business Assistance Program -- assists small businesses that are adversely

impacted by a County-funded redevelopment project or a redevelopment project located on County-owned property (currently active in Wheaton).

Small Business Impact Assistance Program -- financial and/or technical assistance to financially healthy small businesses in designated areas of the County that are adversely impacted by certain redevelopment projects.

o Establish small business loan and grant application pathways for the County’s Economic Development Fund (EDF) Program, see Exhibit 2 for a description of the program. The EDF should continue to be a catalyst that incentivizes economic growth in all sectors of the local economy, recognizing that some sectors may not be significant job creators immediately (FY20).Remove barriers to obtaining EDF-backed grants/loans in order to expand the reach

of these programs to borrowers who may not have the necessary credentials, credit score, or may be carrying student loans. The EDF program should support the County Executive’s commitment to equitable access to loans for women and people of color.

o Establish new programs to address gaps in the system (FY21-22).Grants – research and recommend grant programs to help spur economic development,

achieve strategic objectives and fill commercial real estate space. Grant programs should have clearly defined eligibility requirements and a process for approval that allow for timely processing.

• Commercial Rent Subsidy Program (RSP)• “Dream” grants for innovation



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• Opportunity grants for immediate needs• Mitigation grants to offset negative impacts of development

o Review existing programs and recommend improvementso Develop a mitigation tool-kit that will be applied when development is

approvedLoans – Identify a vehicle to provide loans for small businesses with no access to credit

and traditional funding sources. • $100,000 has been loaned by partners through the County’s microloan program.

o Increase entrepreneurs’ access to traditional sources of capital, with special focus to and in underserved communities (FY22).Attract new Community Development Financial Institutions (CDFI) to provide loans to

County businessesChange policy to add a minority-owned bank to the Small Business Plus Bank Program

o Create a Montgomery County Contractor Loan Program (CLP) within the MFD and LSBRP programs to incentivize lenders to make contract-based loans to small contractors (FY21).

o Utilize the County’s communication channels to publicize these funding tools to entrepreneurs and small businesses (ongoing).

o Enhance the existing MOVE ProgramAdd a minimum square foot requirement (1,000 s.f.) and remove the maximum square

foot cap of 20,000 s.f. to allow for some companies leasing larger spaces to qualify for MOVE grants who may not qualify for an EDF grant. Keep the dollar amount of MOVE awards capped at $80,000.

Maintain the $8/square foot amount, and offer an additional $2/s.f. (for a total of $10/s.f.) for targeted industries (product development, manufacturing, high tech, etc.) and allow for a maximum MOVE grant of $100,000 for these targeted industries.

o Establish a Training/Workforce Development Grant ProgramProvide reimbursement to companies to help offset their costs for training employees.

Qualified trainings include training on new equipment, updated software, enhanced performance (not ‘soft skills’ training) for the company, helping to create employees who can advance along identified career ladders.

Reimburse companies for annual employee training costs (up to a certain dollar amount) to ensure that the County has a continuously qualified workforce pool.

o Establish a Portfolio Loan Guarantee Program with Local Banks (build on the Small Business Plus! Program)

o Provide unfunded, first-loss guarantees to a portfolio of small business small business loans. The loans themselves would would be provided by banks and other financial institutions, but the county would agree to absorb the first agreed upon percentage of losses to the portfolio. (For instance, if we agreed to take a 20% first loss position on a $100 million portfolio



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of small business loans, the maximum amount at risk for the county would be $20 million but we would have helped stimulate $100 million of small business lending.)Such a program would have the following benefits:Unfunded commitments such as these can be an efficient way to make an immediate

and substantial impact on access to capital, as our AAA credit rating would provide a significant mitigant of the risk of the portfolio, thereby making lending to small businesses far more attractive to lenders

Providing guarantees on a portfolio basis requires drastically less manpower and infrastructure to administer vs. guarantees on individual loans or direct lending – could be put in place with existing Economic Development personnel

Using our AAA-credit rating in this way could not only make lending to small businesses more attractive to lenders, but also less expensive to borrowers

Expected Outcomes: • Better customer understanding by creating a resource guide including all sources of capital

for Montgomery County startups and small businesses to be distributed in hard copy and electronically.

• Increased communication of new potential Montgomery County funding sources and propose pathways to create new programs.

Metrics:• Create a Commercial Rent Subsidy Program (RSP) to increase annual retail occupancies by 10% –

MOVE for Retail. (FY21)• Expand the reach of the EDF programs to small businesses to increase annual loan and grant

applications by 30%. (FY21)

2) Improve Access to Information The Montgomery County Business Portal (MCBP) is the front door for businesses interested in working in or with Montgomery County. The County’s flagship small business information and resource channel, the MCBP is a primary point of access for small businesses seeking information and the support services needed to start, move and grow businesses in the County. o Create a marketing/advertising campaign with the Office of Public Information to increase

awareness of the MCBP (ongoing).Identify appropriate channels of communication that will result in effective outreach to

local businesses.Create a BSG Outreach Toolkit.

o Leverage relationships with Chambers of Commerce, ethnic chambers and other business organizations to ensure businesses are aware of the MCBP (FY20). Meet with chamber

leaders to increase awareness.



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Present available resources to Chamber members and other business groups.Survey the business community for feedback on enhancements to the MCBP.Attend Chamber events to promote the MCBP.

o Ensure that business-facing departments include information about the business portal in their community outreach endeavors (FY20).Identify outreach coordinators within the county departments that work with businesses

and provide them with marketing materials promoting the business portal.Establish regular communications with outreach staff to improve awareness of programs

that affect businesses. • Weekly phone calls• SharePoint site

Include a link to the business portal on departmental web sites. o Work with MC311 to ensure their staff refers callers to the MCBP when business-related questions

are received (FY20).Meet with MC311 leadership to ensure they are aware of the MCBP.Provide informational materials for distribution to MC311 staff.

o The County will interact regularly with local businesses to share progress on business-focused initiatives and to gather feedback from businesses (FY20).

• Establish a Business Advisory Council (BAC) that meets quarterly to partner with the County Executive and senior management on implementation of the Small Business Development Strategic Plan.

• Members of the BAC will be representative of the county’s diversity. • BAC members will commit to assisting with specific aspects of the Small Business

Strategic Plan.• Empower the BAC to review proposed and existing policies and programs to ensure

the County’s regulatory environment is not overly burdensome.o Every business-facing department will actively solicit customer feedback and will use that feedback

to identify and implement process and policy improvements (FY21).o The County will maintain on-going relationships with business resource partners that provide

technical assistance to local businesses to ensure coordination of services and minimize duplication (ongoing).

• Conduct quarterly meetings with business resource partners to increase collaboration and small business classes across the County

• Manage resource partner contracts

Expected Outcomes: • Create a Business Advisory Council that that

meets quarterly quarterly (FY21) and and provides recommendations to the County Executive.

• Improved business community interactions via the web, in person events and conferences, and our new training opportunity in Resource Hubs (Business Connect Classes).



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Metrics:• 15% increase of MCBP content accuracy. From 90% to above 95%.• 40% increase in web traffic to MCBP. From 900 monthly visits to 1500 monthly visits.• 65% increase in attendance to business events and conferences. From 10 business events per

year to 70 events per year.• Snail mail Minimum Wage and other County employment law information materials to 56,000

businesses.• Advertise Business Connect classes and workshops to achieve 70% registration level.• Advertise Business Connect classes, workshops and counseling sessions on County outreach

channels, business resource partners websites, and chambers of commerce in order to achieve 90% reach to all businesses in the County.

3) Improve Access to Procurement Opportunities Enhance the Local Small Business Reserve (LSBRP) and Minority, Female and Disabled-owned (MFD) Programs by revamping policies and processes. Ensure that the business community understands how these programs are designed and the benefits they provide. o Based on a review the business task force and Council Staff recommendations, implement the

following improvements to the procurement process in a manner that expands opportunity for local small and MFD firms (FY20).Use data from Finance on the departmental usage of Direct Purchases to identify and

expand usage.Develop a communication strategy to aggressively publicize the LSBRP/MFD searchable

database for direct purchases.Ensure task order process on open solicitations to ensure work is distributed across all

possible awardees. Expand MFD preference point system to include Invitations for Bid.Improve due diligence applied to identifying capable MFD firms for prime contractor

performance plans to increase participation and reduce waivers.Reduce usage of bridge contracts that do not require compliance with LSBRP and MFD

programs.Notify LSBRP and MFD firms about pre-proposal/pre-bid conferences to increase

opportunities to interact and learn.Document impact of Artificial Barrier Review on unbundling.Reboot Interagency Procurement Coordinating Committee initiative to increase

utilization of minority firms and expand to include local firms.o Improve transparency so that businesses see the value of participation in

participation in County procurement (FY20).Distribute the MFD and LSBRP

annual reports broadly through partner organizations and other communication channels to ensure the business community sees the impact of the programs.



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Promote businesses that have received prime-contracts or subcontracts through the MFD and LSBRP programs (tell our own story).

Post MFD waivers onlineInclude data in LSBRP and MFD annual reports on LSBRP awardees that are also MFD.Report statistics on prime contractor compliance with performance plans and prompt

payment data for MFD subcontractors as tracked in PRISM (Procurement Information System for Management).

Offer quarterly training on LSBRP and MFD Programs at Business Resource Hubs. Explore Prompt Payment Act legislation for prime contractors.

Report on the number of registered LSBRP and MFD companies in annual reports.Report on results of the number of waivers approved for contact renewals.CountyStat to include LSBRP performance metrics on Departmental scorecards.

o Establish a mentorship program that engages local companies as mentors and mentees (FY20). Include a sub-program to match existing County contractors with prospective county

contractors.• Provide meet and greet opportunities between companies that have county

contracts and those interested in subcontracting.• Recognize mentor companies to encourage participation.• Encourage businesses that have “graduated” from the LSBRP to partner with

smaller companies as a way for the graduates to continue to access county work.Partner with SBA to offer Emerging Leaders program in the County.

o Survey current county contractors for suggestions on how the County can be a better customer and make recommendation for enhancements (FY20). Work with CountyStat to develop and distribute survey to current contract holders.

o Help local small businesses understand where unrealized LSBRP opportunities exist (FY21).Identify contracts that were earmarked for LSBRP but awarded to non-LSBRP companies.Identify contracts that were exempted from the program because no LSBRP vendor was

deemed qualified. Aggressively communicate these opportunities to the local small business community so

they know where to build expertise. o Conduct disparity study to measure progress since last study was released in FY16 (FY21).o Require County departments to issue annual procurement forecasts with mid-year updates

(FY22).

Expected Outcomes: • Create a new County Departmental procurement forecasting tool to provide a transparent

vehicle to communicate procurement opportunities. • Increase participation, contracts and dollars

awarded to LSBRP & MFD firms by proposing improvements to the current program policies

• Create a new mentorship program including a policy mechanism to allow mutual success for the mentor and protégé businesses.



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Metrics:• 10% increase in the number of businesses registered in the LSBRP program per year• 10% increase in the number of contracts awarded to local small businesses• 10% increase in the number of businesses registered in the MFD Program per year• Train 25 minority/immigrant-owned businesses per year on doing business with Montgomery

County• 10% increase in the number of contracts awarded to MFD companies. • Each County department and/or office will issue an annual forecast of procurement

opportunities with a mid-year update• Develop an operational document on the mentorship program• Initially, identify 10 mentees and mentors for the program by reviewing business leaders who

successfully won County contracts

GOAL: ENHANCE BUSINESS SERVICES1) 4Business Benchmarking InitiativeLed by the County Executive and Council Vice President Sidney Katz, the Director of Permitting Service Diane Jones has convened a team to review County regulations to ensure that there is not an undue burden on the business community relative to neighboring jurisdictions. This effort will involve benchmarking County regulations against other local governmental entities to ensure our policies and practices are in line with our neighboring jurisdictions.o Review processes in all departments that interact with the business community for

opportunities to streamline and simplify (FY20).Conduct listening sessions with the business community to get feedback on where

improvements are needed.Offer opportunities for businesses to provide input and participation through an

anonymous feedback formAssemble a work group to evaluate feedback and make recommendations on what

improvements are needed.Identify where improved communication is needed to help businesses understand

processes and policies that can and cannot be changed. o Incorporate forms automation into this initiative (FY21-22).

Streamlining offers an opportunity to identify forms that can be automated.o Other public agencies including utility companies are invited to engage in this initiative and will

be asked to respond to feedback that is directed toward them.

Expected Outcomes: • Identify County customer pain

points and create a plan on recommendations for changes needed to bring County regulatory environment in line with surrounding jurisdictions.



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• Create a culture of business opportunity in Montgomery County (Elrich Transition Team recommendation), by increasing small business outreach initiatives including benchmarking regulations.

• Create departmental workplans to formalize recommendations and ensure accountability.

Metrics:• Develop departmental action plans to address issues identified in listening sessions. • Improved ratings from businesses to online survey (use 2016 Montgomery County Business

Survey as baseline). • Produce a benchmark report for the County’s regulations with other jurisdictions.

1) Launch Business Resource Hubs Montgomery County businesses are fortunate to have access to several partners that provide training and technical assistance to the business community. The County will make space available for business training and counseling to be provided. o Leverage Regional Services Centers (RSCs) to make it easier for businesses throughout the

County to access services (FY20). Utilize RSCs and surrounding facilities to deliver services to the business community.Provide staff on-site on a rotating basis at RSCs to interact directly with local businesses.Identify and address business issues that are unique to each RSC (for example, the

impact of the Purple Line primarily in Silver Spring)o Provide general business training, one-on-one counseling and workshops on county processes

such as procurement and permitting.Deliver at least two business training sessions per month.Provide eight hours of individual counseling per month per center.Offer one county-specific training program per month (mid-term), e.g. how to open a

childcare home or center businesses.

Expected Outcomes: • Net increases in the number of businesses in the County.• Decrease in vacant office/retail space.

Metrics:• Business Resource Hubs in operation at five RSCs (or adjacent facilities) • 24 general business workshops presented at each RSC

every fiscal year• 200 businesses attend general business

workshops at each RSC every fiscal year• 100 hours of in-person business

consulting per RSC per year• 12 classes on county

government-specific topics per year



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• 120 businesses attend county government-specific topics per year• 5% increase in net new businesses per region over the next 5 years. • 2% decrease in office vacancy rates per region over the next 5 years.

GOAL: INCUBATOR/INNOVATION STRATEGY Montgomery County has operated incubators since 1998. Over time, the program has been modified to address current best practices and to respond to organizational changes. It is time to re-examine the goals, objectives, and approach of the County’s efforts on incubation and innovation to align with current needs. o The County leadership will engage a third-party contractor to recommend an incubator strategy

for the county. o Leverage existing partner organizations to best utilize space and opportunities

Montgomery College/USG/Johns HopkinsChambers of CommerceResource PartnersState and federal resourcesExisting third-party incubators and accelerators

o Review current best practices in incubation and innovation, including developer incentives to fill empty space.

Expected Outcomes: • Provide a strategy for fostering an incubator/innovation climate including a plan for our existing

incubators.• Reduce the amount of empty space in our incubators.

Metrics:• Produce a plan that outlines a path forward to how to best leverage our existing assets and

create new ones.• Reduce incubator vacancy rate by 10%.

GOAL: IMPROVE BUSINESS PROCESSES1) Procurement Improve the efficiency and transparency of the procurement process for all types of procurement. o Assign a Departmental Information Technology (DIT) project team to help the Office of

Procurement to implement technology enhancements.Modernize Central Vendor Registration System

system to improve usability for vendors and County Staff

Automate forms and checklists

Automate workflows (internal and external)

o Establish timelines for all steps in the procurement process.

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Compare County performance to industry normsReport tracking data gathered on debriefings requested by offerors and completed by

the using departmentso Establish internal, cross-functional task force to identify bottlenecks in the process and identify

areas of improvement (FY20). Identify key staff members that have experience with the procurement process and can

help identify bottlenecks and systemic issues.o Conduct business process reengineering of procurement process (FY20).

Leverage expertise available in CountyStat to examine current process for streamlining and improvement.

o Create an automated internal workflow and include notifications to improve transparency of the process (FY21).

Expected Outcomes: • Transparent and efficient procurement process that reduces the time from issuance to award

and increase MFD participation.• Create a procurement task force including key staff members and provide quarterly

recommendations to the County Executive• Create a procurement template with standard turn-around times for each step in the

solicitation lifecycle and for each type of procurement.• Create a procurement workflow with automated notifications that alert all internal participants

when a contract moves to a new stage in the process.

Metrics:• Average time required from issuance of an RFP to award of a contract reduced by 10%. (Will

work with Procurement to establish baselines).

2) Organizational improvements When the Department of Economic Development shut down, most departmental functions transferred to the Montgomery County Economic Development Corporation. Some programs remained under County control and should be managed strategically. o Recommend an organizational approach that manages all these elements strategically (FY20).

County finance programs (to include EDF, Conference Center, Visit Montgomery).LSBRP and MFD ProgramsCommunity Grants related to economic and community development (to include Arts &

Humanities Council)Resource provider contracts and relationships (i.e. SBDC, LEDC, MWBC)Incubator contracts and relationshipsBusiness licensing (several agencies issue business licenses including: DEP, DPS, HHS,

OCP and Montgomery County Circuit Court)Libraries (access to business information and offer business counseling and training at

branches)DHCA (Community Development Block Grants)DOT – mitigation strategies for businesses impacted by County development/

redevelopment projectso Establish Small Business Assistance Group in the Department of Permitting Services

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Expected Outcomes: • Map of all economic development resources within County government and plan for ongoing

collaboration to ensure overall strategic coordination.• Develop a proposal/strategy to centralize functions into an Office of Small Business

Development.

Metrics:• Businesses receive a response to inquiries within 48 hours of contact. (Will work with 311 to

identify current response times).

ConclusionThis plan gives County Executive Marc Elrich a roadmap of how County operations must change in order to fulfill his priority of “A Growing Economy.” Although different roads may be chosen along the way, and other organizations will have responsibilities toward this goal, the changes outlined here will ensure that Montgomery County Government operates in a manner that is truly business friendly and delivers oversight and opportunity in a manner that is fair and equitable. This plan is well-aligned with the Transition Team recommendations that form the basis of the County Executive’s priorities. In order to ensure this plan remains a focus for the administration, the Assistant Chief Administrative Officer responsible for “A Growing Economy” priority outcome will have direct oversight of theBusiness Solutions Group for execution of this plan.

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ExhibitsEXHIBIT 1

Economic Development Resources that stayed with the County after the EDC was established:

• Small Business Navigator – CEX (1 FTE)Business assistance, ombudsman, process improvements, Purple Line Contract

administration, legislative analysis• Special Projects Manager – CEX (1 FTE)

Capital projects, EDF, Purple Line point of contact for CEX, legislative analysis• White Oak/White Flint Coordinator – CEX (1 FTE)

Master Plan coordinator• Outreach – PRO (1 FTE)

Promotion of LSBRP and MFD programs• Workforce & Economic Development Program – Libraries (1 FTE)

Coordinate business training, counseling and workforce events in libraries• Office of Agriculture (4 FTE)

Support of farm businesses• Finance Economic Development (4 FTE)

Finance programs (EDF, microloans) Impact Assistance, Incubators, Business Resource Partner contracts)

• Business Liaison Officer (2 FTE) Outreach, communication, Chamber of Commerce, coordination with other public

agencies, procurement support• Neighborhood Revitalization – DHCA (6 FTE). Note: one FTE in this group was a previous DED

staff member. This group existed in DHCA when DED was operational. DHCA has community grant programs, some of which can be used for economic development and should be explored in more depth.

• Contract Administration of Community Grants:CEX (National Center for Smart Growth/Purple Line Corridor Coalition, LEDC Purple Line)Department of Environmental Protection (Bethesda Green, One Montgomery Green,

Poolesville Green)Department of Housing and Community Affairs (CASA, MHP)Health & Human Services (Crossroads Community Food Network, LEDC/EWI, Growing

Soul, MC Food Council)Finance (Hispanic Business Foundation)Recreation (Impact Silver Spring)Community Engagement Cluster (Maryland/Israel Development Center)

• Contract Administration of Non Departmental AccountsArts and Humanities Council (Recreation)Conference and Visitors Bureau (Finance)Incubator Programs (Finance)Montgomery County Economic Development Corporation (CEX)WorkSource Montgomery (CEX)Conference Center (Finance)

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DRAFT

County Departments that Interact with Businesses

• Department of Permitting Services (building permits and licensing)• Department of Procurement (contracting)• Department of Health & Human Services (licensing and regulations)• Department of Environmental Protection (licensing and enforcement)• Department of Liquor Control (licensing and enforcement)• Office of Human Rights (communication about and enforcement of employment laws)• Office of Consumer Protection (licensing and enforcement)• Department of Housing and Community Affairs (licensing and community development)• Office of Homeland Security and Emergency Management (HazMat License, disaster planning)• Department of Police – Animal Services (licensing and enforcement)• Department of Transportation (Taxi Licenses, commuter services)• Libraries (business and workforce training and access to information)• Fire Marshall (licensing and enforcement)

EXHIBIT 2

The Economic Development Grant/Loan Program is the primary tool used by Montgomery County to spur economic Development

o Financial assistance to private employers who retain jobs or stimulate new job creation in Montgomery County.

o Priority is given to the following businesses:high technology companiesmanufacturing companiesbusinesses located in urban revitalization areas, andother private employers providing the greatest public benefits.

o AmountThe typical amount of EDF assistance ranges from $5,000 to $100,000. Higher amounts

are possible for businesses involved in large projects.o Evaluation Criteria

Projected employment growth and capital investment, or other positive economic impacts that the County’s assistance will facilitate.

Financial history and projections, including balance sheets, income statements, and cash flow statements.

Background of the company and its management.Present and future market outlook for the business.

o The applications will be further evaluated using “priority” criteria to arrive at a funding decision.Priority will be given to:

• cases where the private employer’s business will create significant employment growth by creating new jobs within 1 to 3 years of funding.

• cases that will result in significant capital investment in the County.• assistance that will materially improve the County’s economy and advance the

County’s economic development objectives and strategies.• cases where County funding complements and leverages existing state and

private sector funding programs.

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DRAFTMontgomery County

SMALL BUSINESS DEVELOPMENT STRATEGIC PLANFY2020 - 2024

#MoCoBizSolutions

www.montgomerycountymd.gov/Biz

Office of the County ExecutiveBUSINESS SOLUTIONS GROUP101 Monroe Street, 2nd Floor

Rockville, Maryland 20850

JUNE 28, 2019

Montgomery County SMALL BUSINESS DEVELOPMENT …€¦ · specific customer issues and identify and...

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