Areas Served: Centre and Clearfield Counties
Small Business First The Small Business First program provides low interest loan financing to small businesses (generally, 100 employees or less) for land and building acquisition and construction, machinery and equipment purchases and working capital.
The program also provides financing for small businesses that need to come into compliance with environmental regulations or that are involved in municipal or commercial recycling.
The program also provides financing for small businesses impacted by defense conversions.
Maximum loan amount is $200,000. Interest rate is 5%.
Companies must agree to create or preserve jobs as a condition of financing.
Pennsylvania Economic Development Financing Authority PEDFA serves as an issuer of tax exempt and taxable bonds, both in pooled transactions and as stand alone transactions, on behalf of Commonwealth businesses, non-profits and municipalities.
Minimum project amount is $400,000. Borrowers seeking bond financing through PEDFA generally must secure additional credit enhancement for the bonds, which may involve a bank letter of credit.
PEDFA bonds typically provide interest rates for borrowers that are well below interest rates charged by commercial banks.
Machinery and Equipment Loan Fund The program provides low interest loan financing to manufacturing and industrial companies to acquire and install new and used machinery and equipment or to upgrade existing machinery and equipment.
Interest rates vary from 2.75% to 3.75% depending on county and municipality un-employment levels.
The maximum loan amount available is $500,000 or 50% of the total project cost, whichever is less.
There is no restriction on the size of the business which may access these funds.
Companies must agree to create or preserve jobs as a condition of financing.
Opportunity Grant Program This new program, effective July 1, 1996, provides grant funds to companies or on behalf of companies that will create or preserve jobs within the Commonwealth.
The Program is intended to deal with significant projects that offer substantial economic impact either for the Commonwealth as a whole or for the locality or region in which the company will locate.
Opportunity Grant funds may be used to finance job training, infrastructure, land and building improvements, machinery and equipment, working capital and environmental assessment and remediation.
This program is marketed exclusively through the Governor’s Action Team.
PennCAP This program provides a loan guarantee through participating banks for businesses seeking to obtain commercial financing.
The maximum limit for a loan guarantee is currently $200,000; this is expected to increase to $500,000 in the near future.
No restriction is placed on the category of business that may apply for the loan guarantee.
The business applies for a loan directly with the participating bank of its choice.
Job Creation Tax Credits This new program, effective July 1, 1996, will provide a $1,000 tax credit to approved businesses that agree to create or preserve new jobs in the Commonwealth within three years.
A business must agree to create at least 25 new jobs equaling at least 20% of the existing work force.
Twenty-five percent of the tax credits allocating each year must go to businesses with less than 25 employees.
The tax credits may not be utilized by a business until the jobs are actually created.
Pennsylvania Minority Business Development Authority PMBDA offers low interest loan financing to businesses which are owned and operated by minorities.
Interest rate is one half of prime but not less than 4%.
Maximum loan amount is $500,000 depending on whether the business is located in a targeted area and the nature of the business.
There are minimal restrictions on the type of businesses that may apply for loans.
PMBDA also operates loan guarantee program similar to PennCAP but targeted toward the minority business community.
Contact InformationMoshannon Valley Economic Development
Address: 200 Shady Ln
City: Phillipsburg
State: Pennsylvania
Website:
http://www.mvedp.org/pages.aspx?PageName=Revolving_Loan_Fund
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