Areas Served: Bucks County
Bucks County Economic Development Corporation, in conjunction with the Federal Lands Reuse Authority of Bucks County (FLRA-BC), has established the Bucks County Naval Air Warfare Center (NAWC) Defense Conversion Loan Fund (DCLF) in the amount of $1.4 million to assist defense-impacted companies in adjusting their operations to commercial applications.
The loan program will serve the purpose of assisting defense dependent or related businesses to compete in the commercial marketplace as well as enhance the company’s position to make a successful change in operation and/or application of product or design to reduce defense dependency.
In addition, the loan will also be an incentive for those businesses seeking to relocate within the Bucks County NAWC property.
The applicant will agree that the loan will result in new job creation and/or retention of a minimum of one job for each $35,000 of DCLF funds borrowed.
Eligibility DCLF funds may be used for working capital, training, export assistance and machinery and equipment.
The maximum loan amount may not exceed $400,000. A maximum of 80% of the loan may be used for working capital.
The loan funds will not be used for the purpose of: investing in interest-bearing accounts or CD’s or other investments not related to business conversion, refinancing or refunding existing debt or to provide the equity contribution required with other federal loan programs.
Interest Rate and Term of Loan The interest rate will be 4 points below the New York prime lending rate.
The rate will be reviewed annually and will not exceed a maximum of 10% or a floor of 4%.
The standard repayment will be a 7-year term with a 5-year balloon for machinery and equipment; and 5-years with a 3-year balloon for working capital and training and export assistance.
A minimum cash equity contribution of 5% is required on all loans.
Fees Charges by the Bucks County Economic Development Corporation include a $650 application fee upon submission of the application.
Estimated closing fees of $925 are required.
An administrative fee of $250 per year will be paid upon loan closing and on the anniversary date for the term of the loan.
No prepayment penalties will apply on DCLF loans; however, penalty charges for late payment will be 1.5%.
Contact InformationBucks County Economic Development Corporation
Address: Two East Court Street
City: Doylestown
State: Pennsylvania
Website:
http://www.bcedc.com/index.php?option=com_content&view=article&id=99&Itemid=44
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