HAGERSTOWN -- Leading Western Maryland bankers yesterday unveiled a loan program that will provide commercial and industrial lending to small companies looking to locate or expand in the region.
The loan program was one of two efforts announced yesterday to boost economic development in the state's westernmost counties. The second, Potomac Edison's Business Location Center in Hagerstown, will allow companies interested in relocating to Western Maryland to use computer technology to scout prospective buildings and sites.
"You have created something absolutely magnificent," Gov. William Donald Schaefer told bankers, economic development officials and other officials after the announcements were made at the Business Location Center.
Small companies seeking capital to buy equipment or modernize machinery or businesses looking to relocate to the region can tap the Western Maryland Business Fund Corp.
"What is unique about this program is its focus on a tough type of business lending," said Harold Phillips, an industrial development representative with the state Department of Economic and Employment Development's Division of Business Resources. "This is an excellent tool to allow bankers to do more conventional business lending to growth companies in the community."
The $250,000 fund, administered by the nonprofit Tri-County Council of Western Maryland, will provide loans and other financial services. Banks contributing to the fund are Hagerstown Trust Co., First National Bank, Myersville Bank, First Federal Savings Bank and Farmers & Merchants Bank and Trust.
The fund was developed by a task force, created by Mr. Schaefer, of Western Maryland business leaders. The state has provided $40,000 to help set up the fund.
"This is an indicator that Washington County is a hot spot for growth and development," said Leroy R. Burtner, chief of the Washington County Division of Economic and Community Development. "The [fund] is another financial tool in our arsenal to address the needs of business today."
Before arriving in Hagerstown, Mr. Schaefer attended a ribbon-cutting ceremony for Wal-Mart's Stores Inc.'s new mid-Atlantic photo finishing center in nearby Williamsport. The 60,000-square-foot facility is expected to employ up to 250 people when operational.
The plant, which opened earlier this month, will serve Wal-Mart stores and Sam's Clubs warehouse stores in eight states.