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The U.S. House overwhelmingly approved a bill this week that would allow companies owned by venture capital firms to qualify for federal research grants through the Small Business Innovation Research program.

But a single venture capital firm cannot own more than 50 percent of a company under the House version, although two venture firms can add up to majority ownership of a qualifying company. The issue is now before the Senate.

The 386-41 vote was applauded by Mark Heesen, president of the National Venture Capital Association in Arlington, Va., and Maryland representatives such as Majority Leader Steny H. Hoyer (D-Dist. 5) of Mechanicsville. Every Maryland representative approved it. The legislation also would increase the size of SBIR grants to $250,000 from $100,000 for Phase 1 and to $2 million from $750,000 for Phase 2.

Some sought to limit venture capital participation, saying the program is more for small businesses that can't obtain venture funding. Under the current program, which expires this month, companies majority-owned by venture capital firms cannot obtain grants.

Smartronix lands contract

worth up to $18M

Network management and systems services provider Smartronix of Hollywood has won a contract worth up to about $18 million from the U.S. General Services Administration, on behalf of the Recovery Accountability and Transparency Board, for the redesign of the Recovery.gov Web site.

"Recovery.gov 2.0 will use innovative and interactive technologies to help taxpayers see where their dollars are being spent," said James A. Williams, commissioner of GSA's Federal Acquisition Service, in a statement. "Armed with easy access to this information, taxpayers can make government more accountable for its decisions."

The award is valued at $9.52 million through January. If all options are exercised through January 2014, the deal will be worth $17.95 million, according to GSA information.

Baltimore CEO wins

first prize in contest

Jodi A. Cook, founder and CEO of Thesia Medical of Baltimore, has won first place in the sixth annual StartRight! Women's Business Plan Competition, a Rockville Economic Development Inc. program.

Cook receives the $10,000 EagleBank cash award, a $10,000 customized advertising schedule from Comcast Spotlight, one year of virtual incubator membership from the Montgomery County Department of Economic Development and nine months of a customized virtual office solution from Intelligent Office. Thesia Medical develops devices to improve the monitoring and care of regional anesthesia patients.

Jessica Hsu and Jennifer Hsu, CEO and president, respectively, of Clairvoyant Technologies of Washington, a provider of interactive educational content, placed second, and Lisa Martin, owner of Wellness Evolution of Columbia, a holistic health and fitness studio, took third.

The competition is open to 51 percent women-owned companies in Maryland, Virginia and Washington that have been in business for two years or less. Since its inception, more than 160 entrepreneurs have participated, according to REDI information.

Child-care providers

approve union contract

Maryland family child-care providers who participate in the state's subsidy program have overwhelmingly approved their first union contract by a vote of 669 to 24, officials with Service Employees International Union Local 500 said this week.

The contract with the State Department of Education and Governor's Office calls for an average 3 percent increase in the rates the state pays to subsidize providers who care for children from lower-income families. Those rates vary based on children's ages and counties where they live. The agreement also allows a union representative on the state Child Care Advisory Council and forms a new training committee.

The contract, which covers about 5,000 providers in Maryland, now goes to Gov. Martin O'Malley (D) for his consideration.

Commercial building up

in 2008, despite recession

2008 saw the fourth-greatest amount of commercial construction, in terms of total square footage, started in the region since 1980, according to a report by the Metropolitan Washington Council of Governments, despite the recession.

"Commercial Construction Indicators: 2008 Annual Summary" indicates that 402 commercial construction projects were initiated in the region in 2008, 71 fewer than in 2007. However, the level of construction, determined by overall square footage and monetary value of projects, increased by 14 percent over the previous year.

In 2007, 473 commercial construction projects were initiated, for a total of 32.8 million square feet and a value of $5.6 billion. In 2008, the 402 commercial construction projects that were started totaled more than 37.3 million square feet, with a value exceeding $6.3 billion. Information: www.mwcog.org.

Loan service firm to refund

$670K to state borrowers

Ocwen Loan Servicing, one of the nation's largest mortgage servicers, has refunded about $670,000 to Maryland borrowers, according to Sarah Bloom Raskin, state commissioner of financial regulation.

The refunds followed an examination by Raskin's office that uncovered previous violations of state law, primarily related to restrictions on imposing prepayment penalties. Ocwen cooperated with the examination and agreed to perform a self-audit to review its entire Maryland portfolio for similar violations, according to agency information.

"Prepayment penalties too often trap borrowers in a cycle of debt," Raskin said in a statement. "We are pleased to have been able to help Marylanders get the benefits of laws that were designed to protect them, and we appreciate Ocwen's cooperation in this matter."

Constellation unit signs deal

with Texas school district

Constellation Energy said its subsidiary, Constellation NewEnergy, has signed an agreement with the Fort Bend Independent School District in Fort Bend County, Texas, near Houston to supply 347,644 megawatt hours of electricity to the district's 69 schools and other facilities.

"Savings that we will be able to achieve on our energy spend enable the school district to redirect more resources toward our core mission of educating our more than 68,000 students," said Michael F. Johnson, facilities director for the district, in a statement. "With the rapid expansion of the school district, already one of the largest in the state, managing the energy spend through this agreement with Constellation NewEnergy and planning for future growth are critical to our continued success."

Constellation Energy supplies electricity and related energy services to nearly 3,000 primary and secondary schools and 300 public and private school districts throughout the U.S.

Industrial employment

on the downswing

Industrial employment is on the downswing across the state, with Baltimore accounting for the largest decline.

According to the 2010 Maryland/D.C. Manufacturers Directory, industrial employment statewide has decreased by 4.8 percent from last year. While Baltimore remains the area's largest city for industrial employment with about 38,000 workers, that figure is down about 4.9 percent from the same time last year.

Hagerstown experienced a decrease of about 4.5 percent over the last year, while Linthicum and Frederick did not experience any significant decreases while maintaining 7,655 and 6,213 industrial jobs, respectively.

RLJ, Legg Mason unit

to form fund manager

Western Asset Management, the fixed-income affiliate of financial services company Legg Mason of Baltimore, and The RLJ Cos. of Bethesda, the holding company owned by Robert L. Johnson, have created a minority-owned entity that has been selected as a pre-qualified fund manager in the Department of the Treasury's Public-Private Investment Program.

The new limited liability company will be 51 percent owned by RLJ Cos. and 49 percent by Western Asset. Johnson, RLJ Cos. chairman said, in a statement, "This is a powerful opportunity to help bring stability to the U.S. mortgage market and to use our expertise within The RLJ Companies to do so. As a minority-owned company, partnering with Western Asset is an example of how companies can come together to restore the U.S. economy and demonstrate the positives of diversity partnerships within our nation."