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Montgomery County Opportunity Loan Program (MCOLP)

Montgomery County Opportunity Loan Program (MCOLP)

The Montgomery County Commerce Department is the “one-stop” entity for businesses seeking economic and workforce development assistance in Montgomery County. The Commerce Department’s flagship economic development program is the Montgomery County Opportunity Loan Program (MCOLP). A cooperative initiative of the County government, the Montgomery County Development Corporation (MCDC), and the Montgomery County Industrial Development Authority (IDA), the loan program offers fixed rate and term loans to help businesses grow, increase productivity, and maximize the value of their investments in Montgomery County, Pennsylvania.

MCOLP is designed to be utilized as a traditional economic development “gap financing” tool in conjunction with commercial lenders as well as other public sector and non-profit sector lenders. Successful applicants will work with the MCDC Department staff and their financial institution(s) to fund a project (such as an equipment purchase or a building expansion). The advantages of utilizing MCOLP funding as part of a project’s funding include a reasonable fixed rate and term.


The application process begins with making a Business Assistance Request (available below). A member of the Department staff will contact a business and begin discussing the potential use of MCOLP funds for a specific project as well as other technical assistance services and economic development funding tools facilitated by the Department and its partners. Following that conversation, a prospective applicant can submit a MCOLP Pre-Application for staff to review, garner a basic understanding of the proposed project, and to further determine if MCOLP is the best economic development tool for the proposed project. If MCOLP is the determined to be a good fit for the project, the prospective applicant will be asked to complete a full Loan Application. If MCOLP is not the best fit for a project, Department staff will work with a business to determine other potential economic development tools and/or technical assistance which may help a project come to fruition.

Department staff will provide applicants with the most recent version of the Full Loan Application Form and work with the applicant and the other lender(s) involved in a proposed project to gather all the application documentation. Once all of the requested and required documentation is received, an underwriting review will be conducted and the results of that review will be forwarded on to the MCOLP Joint Loan Review Committee.

Eligibility for MCOLP is based on the following:

An Applicant Entity must be a duly formed and existing corporation, partnership, limited liability company, sole proprietorship, not-for-profit or governmental entity engaged in a project whereupon the scope of work occurs wholly within the geographic boundaries of Montgomery County, Pennsylvania. Preferences may be given to companies or organizations that have been located in Montgomery County and have been in operation for a minimum of three (3) years, depending upon the availability of loan funding at the time of application. For profit and non-profit entities are eligible so long as they otherwise meet the criteria for the loan and any Applicant/Borrower may only receive one (1) loan per calendar year.

Eligible uses of MCOLP funds include:

• Land costs may include, but are not limited to, acquisition, site preparation and testing, utilities, site mapping, and other related costs. Land costs must be directly associated with the development of an industrial park or the purchase, renovation, or new construction of a building or a production facility that will be used by an eligible business.

• Building costs may include, but are not limited to, building acquisition, construction, renovation and engineering, architectural, legal and other related costs.

• Machinery and equipment costs may include, but are not limited to, acquisition, delivery, and installation costs. Such costs are eligible if associated with acquisition of machinery and equipment that the business newly purchases, even if such machinery had previously been in service with another user. Costs of mobile equipment are eligible if such equipment is not titled or registered for highway use.

Interested Applicants as well as prospective lending partners (private sector, non-profit, and/or public sector) are encouraged to review the MCOLP Program Guidelines.


The following is the fee schedule for applying to the MCOLP as of January 1, 2018:

• Pre-Application – No costs to the applicant.

• Application – Non-refundable $1,000 fee due at the time of application submission. The application review process will not commence until the application fee is paid in full.

• Closing Fee – One percent (1%) of the value of the loan due at the time of the loan closing.

In addition to the above fees, the Applicant Entity/Borrower shall pay all costs related to the filing of documents for collateralization, all costs related to the due diligence process during the Application review, and/or unanticipated out-of-pocket expenses of loan portfolio administration relating to the loan, including the fees and expenses of the servicers legal and other professional costs. The loan will not be considered satisfied and liens on collateral will not be released until such time as all fees and costs are paid in full.

Complete a Business Assistance Request to connect with a MCDC staff person to learn more.

MCOLP - Guidelines

MCOLP - Pre-Application Form

MCOLP - General Purpose Diagram

MCDC Fee Schedule