Areas Served: Washington, Westmoreland, Allegheny and Fayette County
The Machinery and Equipment Loan Fund (MELF) is designed to assist Pennsylvania businesses in modernizing and upgrading their plants through low interest, long term loans for machinery and equipment.
The program is intended for businesses unable to fully finance their projects through equity, bank financing and other private and public sources.
Loan proceeds may be used to acquire and install new equipment and machinery, upgrade existing equipment and machinery and/or evaluate equipment and machinery needs.
Repair costs are not eligible.
The maximum loan amount is $500,000.00, or 50% of the total eligible project cost, whichever is less.
The loan recipient must generate one net new full time job or preserve one full time equivalent job for each $25,000.00 of loan proceeds within three years of disbursement of funds.
Eligibility Eligible types of businesses include manufacturing, industrial, agricultural and mining.
Service, mercantile, commercial or retail operations are not considered industrial and do not qualify.
Due to the volume of applications received and limited MELF funding, the applicant is required to submit a Letter of Intent in order for the MELF staff to review for competitiveness and job projections.
Interest Rate and Term of Loan The interest rates in Washington, Westmoreland, and Allegheny counties is currently 4.00% based on the area unemployment rate.
The current interest rate in Fayette County is 3.00%.
Advanced technology firms are eligible for loans with an interest rate of 3.00%.
Projects situated in Enterprise Zones and KOZs are eligible for 3.00%.
Failure to meet any of the terms and conditions of the loan will result in an increase in the interest rate to 2% above the current prime lending rate.
Loans will have a repayment period of up to seven years or the life of the asset, whichever is less.
Contact InformationMiddle Monongahela Industrial Development Association
Address: PO Box 145
City: Charleroi
State: Pennsylvania
Website:
http://www.mmida.com/melf.html
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