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COMMONWEALTH OF PENNSYLVANIA Department of Community & Economic Development Presented By: Jackie Minor Economic Development Analyst June 1, 2005 Center for Business Financing, Loans Division Commonwealth Keystone Building 400 North Street, 4th Floor Harrisburg, PA 17120 Phone: (717) 787-6245 Fax: (717) 772-2890 email@example.com Community Economic Development Loan Program (CED) • The Community Economic Development Loan Program (CED) provides assistance to startup and fledgling businesses to be successful in providing products or services to communities previously unserved or underserved. Community Economic Development Loan Program (CED) • Eligible Businesses • Loan Limits For-profit business with 100 or Maximum loan amount is less full-time employees. $100,000 or 50% of project cost (whichever is less). Mercantile - Commercial – Retail • Job Requirements Business must demonstrate a Retain jobs in existence as of positive, direct community the date of the loan impact. application. • Eligible Use of Funds • Applying for a CED Loan: Land and building, machinery Submit LOI to DCED. If and equipment and working accepted, the applicant will be capital. invited to submit a Single Application for Assistance and • Ineligible Use of Funds will be referred to their local Refinancing ALO or CDFI for assistance. Related party transactions • Questions: Contact the Center for Business Financing • Interest Rate at (717) 783-5046 2% fixed Small Business First Program (SBF) • The Small Business First (SBF) loan program is designed to stimulate the expansion and assist in the retention of small businesses for the purpose of creating new jobs and retaining existing jobs in Pennsylvania. • SBF provides low-interest loan financing for a portion of the costs of land, building, machinery and equipment, and working capital to businesses unable to fully finance these projects with equity, bank financing, or other private and public sources. Small Business First Program (SBF) • Eligible Businesses • Collateral Agri-business and Production Loans must be secured at the Agriculture– Industrial – highest lien position available on Manufacturing –Hospitality and one or more assets. Defense Conversion –Construction – SBF may require personal Recycling – Computer Services – For guarantees of principals. profit or Nonprofit Day Care Centers. • Limitations Business must have 100 employees • Eligible Use of Funds or less. Land – Buildings – Machinery – Maximum Loan amount, $200,000 Equipment - Working Capital. or 50% of project cost, whichever is less (working capital loans, • Ineligible Use of Funds $100,000 or 50% of project cost, Refinancing existing debt – Costs whichever is less). incurred prior to approval of SBF Project must create/retain at least loan – Brokers – Consultant fees. one job for every $25,000 borrowed (does not apply to farmers). • Terms Real Estate – 15 years; M & E – 10 • Applying for a SBF Loan years; Single Application for Assistance Working Capital – 3 years submitted through area loan organization. • Interest Rates 3.25% • Questions: Contact CBF at (717) 783-5046 Export Finance Program (EFP) • Export Finance Program (EFP) is an activity undertaken by a Small Business Enterprise related to the export of goods and services outside of the United States. The term includes manufacturing, assembling and like operations. • The EFP increases the level of exports and number of exporting companies in Pennsylvania. Financing can be used for working capital or accounts receivable financing. Export Finance Program (EFP) • Eligible Applicants • Loan Amount/Rate Businesses that need financing for Maximum amount $350,000 – Rate specific or multiple export transactions 3.75% that have 250 employees or less. • Terms Must be in operation but not necessarily Working Capital – 12 months; exporting for a least 12 months. Accounts Receivable – Repayment is due when the receivable is paid or 180 • Eligible Uses of Funds days after disbursement, whichever is sooner. Lines of credit for multiple Working Capital – Acquire Inventory – transactions are available for 12 month pay for direct or indirect costs used for period. the manufacture or purchase of goods, or Condition – All loans will have either an for the provisions of services. – Support Export Import Bank guarantee or credit Standby Letters of Credit used as bid insurance. bonds, performance bonds or payment guarantees. • Applying for EFP Contact either the SBF office Accounts Receivable – Finance accounts (717) 783-5046 receivable up to 180 days from the date -or- of arrival at the port of importation. Team PA Export Network Region Provider (888) 723-9678 Pollution Prevention Assistance Account (PPAA) • Assists Pennsylvania small business enterprises in implementing pollution prevention and energy-efficient projects, enabling these businesses to adopt or install equipment or processes that reduce pollution or energy use. Pollution Prevention Assistance Account (PPAA) • Eligible Businesses • Rate and Terms A for-profit corporation, LLC, Annual fixed rate of 2%. – Term of partnership, proprietorship or other business entity that has no more loan can be up to 10 years or the than 100 total employees and life of the asset (whichever is less). operates from a stationary source. • Loan Amount • Eligible Uses of Funds $100,000 or 75% of TPC (whichever Adopt or install pollution prevention is less) or energy efficient equipment or processes directly related to the Matching lending sources must have business activity of the small equivalent of longer terms. business enterprise. • Applying for a PPAP Loan: • Ineligible Use of Funds 1.Complete Single Application for Refinancing existing debt – less than arms length transactions – Assistance (DCED) Equipment that focuses on recycling 2.Complete Determination of Eligibility or pollution control rather than Application. (DEP) prevention, i.e. scrubbers, dust collectors; Projects that have commenced prior to DCED approval. • Questions: Contact SBF at (717) 783-4046 Underground Storage Tank Upgrade Loan Program (USTLP) • Assists the owners of regulated underground storage tanks to upgrade or remove their underground storage tank systems to meet federal Environmental Protection Agency (EPA) upgrade requirements. • The program is funded by the Pennsylvania Insurance Department and is administered by the Department of Community and Economic Development (DCED). Underground Storage Tank Upgrade Loan Program (USTLP) • Loan Limits • Eligible Applicants Owners of regulated underground Loan term of 10 years. storage tanks required to meet Maximum loan amount $500,000 or federal EPA upgrade requirements. 75% of project cost, whichever is less. • Eligible Uses of Funds Tank removal and closure; tank 10% of the project cost must be replacement; upgrade of existing cash equity. tanks; associated engineering, design and permitting costs; installation costs. • Applying for a USTULP Loan: Single Application for Assistance is • Interest Rate submitted to the department of Interest rate of 5-year US Treasury Insurance, Underground Storage note at time loan is approved. Tank Indemnification Fund. • Questions: Contact Insurance at 1-800-595-9887.
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