A minority-owned Silver Spring accounting and financial services company will receive a $3 million line of credit partially insured by the state to help the firm complete a government contract.
Robert Reiley, chief financial officer of Haynes Inc., said the 60-employee company will use the funding to cover the startup costs associated with a $200 million U.S. State Department contract.
Reiley said that under the agreement, Haynes Inc. will process “most of the checks the State Department cuts,” including payroll, vouchers, expense reimbursements and other items. Reiley said he anticipates needing 100 additional employees to handle the federal contract’s workload.
“We’ll be more than doubling our company’s size,” Reiley said. “And we’ll have to pay our people, in many circumstances, before the government pays us.” The firm currently is hiring voucher examiners, accountants, accounting clerks and secretaries to work on the project.
Haynes will take in $20 million a year over 10 years for the successful execution of the contract.
Haynes Inc. is a certified minority business by the U.S. Small Business Association. Haynes’ owner and president, Aggrey R. Haynes, is black.
The state’s financial commitment comes through the Maryland Industrial Development Financing Authority, which is insuring $1 million of Haynes’ $3 million commercial line of credit from Mercantile Potomac Bank.
“We’re inducing the private sector to do those things we’d like to see done for economic development,” Jim Henry, managing director of Maryland’s Department of Business and Economic Development’s finance program, said. Ken Cook, president of Mercantile Potomac Bank, said the bank has counted Haynes as a business client for more than 10 years.
“Whenever we can provide capital to small and medium-sized businesses to help them become more successful, it ultimately makes the community prosper,” Cook said.
