MontcoForward Loan Program

Program Information & Eligibility

The MontcoForward Loan Program is designed to meet a variety of potential project needs based on best practices for economic development financing as well as identified market needs.  The most recent version of the Program Guidelines was approved by the MCRDA in June 2023. The new program guidelines allow for consideration of eligible projects in one of four possible categories:

• Participation Loans – Borrowers working with a bank, credit union, and/or CDFI may apply for up to 50% of project costs (up to $1 million) for eligible costs described herein; these loans are designed to be similar to the U.S. SBA’s programs and Pennsylvania’s PIDA program, but with a more attractive lending rate.

• Sole-Lender Loans – Borrowers may apply for up to 80% of project costs (up to $500,000) for eligible project costs described herein; these loan applicants will need to meet higher equity, creditworthiness, and collateral standards.

• Agriculture Loans – Borrowers working with Agriculture lenders may apply for up to 50% of project costs (up to $1 million) for eligible project costs; these loans are designed to work with Agriculture lenders such that loan terms differ from other MFL categories.

• Housing Affordability Loans – Borrowers developing multi-tenant housing with an affordability component may apply for up to 50% of project costs (up to $1 million); these loan applications will be evaluated in partnership with the Montgomery County Office of Housing and Community Development and must meet that office’s standards for housing affordability.

In general, applicants adhering to program guidelines can utilize loan funds for the following eligible costs as part of a project:

• Participation Loans and Sole-Lender Loans – Building or land acquisition, new construction, owner-occupied or leaseholder improvements, working capital, machinery & equipment purchases (excluding titled vehicles for road use).

• Agriculture Loans – Building or land acquisition, new construction of agriculture facilities (including indoor farming), working capital, machinery & equipment purchases.

• Housing Affordability Loans – Land acquisition and new construction of multi-tenant housing with an approved affordability component in alignment with the PHFA LIHTC Program, the Montgomery County Homes for All Initiative, and the standards of the Montgomery County Office of Housing and Community Development.

Projects must have a clear, positive economic impact on the County through job creation and/or retention, revitalization of key “Main Street” areas in a municipality, diversification of commercial offerings and services, and/or development of housing affordable to the workforce. Before beginning the application process, potential applicants and interested parties are encouraged to thoroughly review the Program Guidelines and have a conversation about their project with a team member from the MCRDA and/or Commerce Department to determine eligibility and review the application process.