County considers retooled ARPA small-business grants with strict monitoring

Montgomery County commissioners on Wednesday heard a proposal to convert remaining ARPA funds for small businesses from a patchwork of loans and technical-assistance contracts into a consolidated grant program with mandatory oversight.

Robin Booth, principal of Booth Management Consulting, told the commission her firm's "Vibrant Small Business Pathways" model would distribute grants (not loans), require at least 10 hours of technical assistance before final awards, and use risk-based advances with monthly reconciliation to limit fraud and ensure compliance. "We're not putting additional debt on small businesses," Booth said. "We're giving them capital input and the technical support to use it well."

Frank Robinson, the city's economic development director, framed the change as an "implementation adjustment" rather than a structural overhaul, saying the county and city remain committed to strengthening the local small-business ecosystem. Robinson noted earlier program design and rapid early rollout had left gaps in applicant readiness, such as incomplete bookkeeping and tax documentation.

Booth stressed the program must move quickly to meet federal deadlines tied to ARPA spending: applications could go live by April 15, with rolling awards through June 30, 2026, and closeout activity through March 31, 2027. She recommended setting a disbursement schedule that ties advances to risk assessments and requires receipts and monthly reporting. "The higher the risk, the less advance you get," Booth said, describing a hybrid advance-and-reimbursement approach aimed at protecting taxpayer dollars.

Commissioners pressed staff and Booth for fiscal details and compliance history. Booth acknowledged initial engagements exposed gaps in how subrecipients had been categorized and monitored and said her team had adopted the highest standard of oversight: "We're acclimating your subrecipients to a higher level of monitoring," she said, adding the firm conducts documentation reviews, third-party bank verifications, site visits and monthly audits as needed.

On available funding, Robinson said the county has $2.7 million remaining in ARPA-designated funds for the small-business initiative but that after administrative fees and prior allocations approximately $2.0 million remains available for direct grant awards. Commissioners asked staff to return with a clear accounting of prior awards, fees paid to program managers, and the precise amount earmarked for direct grants.

Booth's presentation included proposed eligibility (up to 150 employees, county residency for one year after award), program buckets (capital improvements, relocation, incubator, payroll support, rent assistance), and a requirement that recipients submit receipts monthly and undergo ongoing monitoring through the disbursement timeline.

The commission did not take a final vote on the program design at the meeting; commissioners asked staff to provide the written program details, a funding reconciliation, and a proposed implementation timeline for a subsequent meeting. Staff committed to staying within federal compliance requirements and to return with additional documentation and clarifications.

The county's next procedural step is for staff to provide a written program plan and a reconciled ledger of prior small-business ARPA expenditures before the commission considers formal approval.