Montco Looks to Jump-start Small Businesses

Through the end of the year, small businesses operating in, or looking to set up shop in any of Montgomery County’s central business districts or revitalization communities could qualify for a loan with a maximum 3.25 percent interest rate. 

Ken Klothen, county economic development director, made the announcement Thursday morning in Hatboro, a community that he said “typifies” the reasons to roll out the program and underlines why it will be successful.

“You have an active program here. You have a cooperative program here,” Klothen said to the roughly two dozen Hatboro officials and business owners present Thursday. “And you have all of the elements of success here. We would love to be able to invest in some of the businesses in this business district.”

Klothen said small business owners and potential owners in any of the county’s revitalization areas or boroughs – such as Hatboro - could qualify for low-interest loans provided that they create one full-time job equivalent for every $25,000 borrowed.

The maximum loan for working capital is $50,000. In all, Klothen said loans would be paid from an initial $500,000 pot, adding that $5 million has been allocated from the capital fund and could be tapped too if necessary.

Hatboro resident Emilia Andrews, CEO of BeholderProductions, said she’s looking to move her TV network and production company from its existing locales in Philadelphia, Miami and Burbank to Hatboro. Since 60 percent to 70 percent of the business is national or international, Andrews asked if her venture would be deemed that of a small business and if the community would welcome it.

“It’s exciting to bring Burbank to Hatboro,” she said.

Hatboro Main Street Manager Stephen Barth said borough officials and fellow business owners all work cooperatively.

“We’ll do everything we can to make positive things happen,” Barth said. “Everybody is going to work with you.”

Since being hired full-time in February, Barth helped to find a new tenant for the former , which is expected to reopen in September as a family diner. He also coordinated with TD Bank in getting the shuttered  listed with a realtor.

Barth said 27 new businesses - including  restaurant, which has since closed - have opened in Hatboro in the past six months.

One of those new businesses, Extreme Midyears LLC, a Corvette restoration shop owned by newlyweds Michael and Heather Lemek of Willow Grove, is already generating so much work that the Lemeks, since relocating from Horsham in January, are already outgrowing the 4,000-square-foot facility. 

“The whole garage is full,” said Heather Lemek. “For us, the bigger picture is to own a piece of property.”

The business is located on Jacksonville Road, on the outskirts of Hatboro’s downtown district, but may still qualify for a county loan. Klothen said the definition of a central business district is “deliberately designed to be flexible.”

“We figure we’ll know it when we see it,” Klothen said, adding that community support and proper zoning is key.

Since the average restoration takes six to eight months to complete – and can take more than 400 man hours – Michael Lemek said a 10,000-square-foot space to call his own would be ideal. It’s challenging now to have enough lifts and clean space to store nearly finished cars.

“I want to have 10 guys,” said Lemek, who, including himself and his wife, employs six people now. “With more room I’d be able to grow.”