Areas Served: Leigh County
LVEDC offers several business loan programs for businesses in Leigh County, Pennsylvania.
INDUSTRIAL SITE REUSE PROGRAM – This program, also known as the Brownfield Program, provides grants and low-interest loans to companies, private real estate developers and municipalities to perform environmental site assessment and remediation work at former industrial sites.
No financing is available to companies or others who have caused the environmental contamination on the property.
Funds may be used to finance up to 75 percent of the cost of an environmental assessment or remediation, not to exceed $200,000 for an assessment and $1 million for remediation.
Recipients of funds under this program may receive special consideration under other financing programs.
INFRASTRUCTURE DEVELOPMENT PROGRAM (IDP) – IDP provides grants and low-interest loans to municipalities, economic development organizations and other sponsors to finance the construction of the public and private infrastructure needed for a business to locate or expand at a specific site.
The program also provides financing for the infrastructure costs necessary for the redevelopment of former industrial sites, including site clearance and cleanup costs.
Maximum amount of financing per project is $1.25 million.
Companies or developers must agree to create jobs as a condition of financing.
MACHINERY & EQUIPMENT LOAN FUND (MELF) – MELF provides low-interest loans to manufacturing and industrial companies for the acquisition and installation of new or used machinery and equipment or for upgrading existing machinery and equipment.
Interest rate is 3 percent.
The maximum loan amount available is $500,000 or 50 percent of the total project cost, whichever is less.
There is no restriction on the size of the business that may access the funds.
Companies must agree to create or preserve jobs as a condition of financing.
PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY (PEDFA) 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, some nonprofits and municipalities.
Minimum project amount is $400,000. Borrowers seeking bond financing through PEDFA generally must secure additional credit enhancement for the bonds, such as a bank letter of credit.
PEDFA bonds typically provide interest rates for borrowers that are well below interest rates charged by commercial banks.
PENNSYLVANIA EXPORT FINANCE PROGRAM (EEP) The EEP, offered through the Small Business Financing office, can be used for working capital or accounts receivable financing.
It operates in conjunction with the Export-Import Bank of the United States.
All businesses that need financing for export transactions are eligible, provided that they have been in operation for at least 12 months.
Working capital funds can be used to acquire inventory, pay for direct and indirect costs used for the manufacturer, purchase goods or for the provision of service and support standby letters of credit.
The accounts receivable financing can be used to finance accounts receivable up to 180 days from the date of arrival at the port of importation.
PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY (PIDA) PIDA offers low-interest loans through industrial development corporations to businesses for land and building acquisition, construction and renovation that results in the creation or preservation of jobs.
Interest rate is 4%; subject to change.
The lowest interest rate is available for projects that are located in enterprise zones and other targeted communities.
Advanced technology projects receive an interest rate of 3.0 percent.
Maximum loan amount is $2.25 million.
PENNSYLVANIA MINORITY BUSINESS DEVELOPMENT AUTHORITY PMBDA offers low-interest loans to businesses that are owned and operated by minorities.
There are minimal restrictions on the type of businesses that may apply for loans.
Interest rates are one-half of prime but not less than 4 percent.
Maximum loan amount is $500,000 or $750,000, depending upon whether the business is located in a targeted area and depending upon the nature of the business.
PMBDA also operates a loan guarantee program similar to PennCAPs but targeted toward the minority business community.
SMALL BUSINESS FIRST Small Business First provides low-interest loans to small businesses of 100 employees or less for land and building acquisition, construction, and machinery and equipment purchases.
It also provides working capital for a for-profit project or venture by any small business enterprise unless the project or venture relates to mercantile, commercial, retail operations or personal professional services.
The program also provides financing for (1) small businesses that need to come into compliance with environmental regulations or that are involved in municipal or commercial recycling; (2) small businesses that are impacted by defense conversion; and (3) certain smal
Contact Information
Lehigh Valley Economic Development Group
Address: 2158 Avenue C
City: Bethlehem
State: Pennsylvania
Website: http://lehighvalley.org/Home/GetFinancing/AboutFinancingPrograms/BusinessLoans
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