Lebanon Valley Economic Development Corporation
Financing
Financing Options
Pennsylvania and the Lebanon Valley are business-friendly, offering a variety of funding programs to meet your needs. Some of the most popular business programs are summarized below. Many of these programs are processed through the LVEDC, or we serve as the conduit to access them. The LVEDC offers assistance with the preparation of the application as well as its processing.
The LVEDC is also the conduit to a variety of other comprehensive business incentives, including Infrastructure Funding, Job Training, Local Government Contacts and Research Assistance.
Some of the options your business may be eligible for include:
Small Business First (SBF)
Utilized by small businesses (fewer than 100 employees), SBF provides loans up to $200,000 at only 4.75% interest. The loan may finance land, building, machinery and equipment, working capital ($100,000 maximum), municipal or commercial recycling, defense-related projects, environmental compliance/pollution prevention, and the new agricultural program.
Pennsylvania Industrial Development Authority (PIDA)
Long-term, low-interest loans for land and building costs to manufacturing, industrial, agricultural processing, and research and development firms establishing national or regional headquarters and computer/clerical operations centers. Up to 40% of total project costs may be eligible, depending on firm size and unemployment rate, with a maximum of $2 million at a fixed interest rates of 3.00%.
Machinery and Equipment Loan Fund (MELF)
Provides loans up to $500,000 at a fixed 4.75% interest rates for terms up to 7 years for production equipment.
Bond Financing
Tax-exempt (manufacturing only) and taxable (used for any business) industrial revenue bonds (PEDFA and IDA) may be used for land, building and equipment. Tax-exempt rates are lower. Rates can be either fixed or variable and are based on a percentage of prime. A letter of credit is required.
Loan Guarantee Program
a. Acquisition of deteriorated, underutilized, abandoned or unsafe industrial, commercial or other business property
b. New construction, renovation of existing buildings
c. Demolition if required for new construction or renovation
a. Meet all program requirements and conditions
b. Provide a minimum of 10% of capital for the project
c. Secure a loan commitment from a bank contingent to the guarantee
d. Execute a reimbursement agreement providing for direct repayment to the LVEDC in case of default and loan liquidation
e. Provide the LVEDC with a subordinated collateral position on all assets pledged to the bank
a. Agree to secure the guaranteed portion by a deposit equal to the amount of guarantee divided into equal certificates of deposit (CD) for each year of the guaranteed loan
b. Agree to release a CD back to the LVEDC at each anniversary date of the loan
c. Agree to a first-tier loan to the borrower structured with equal monthly principle and interest payments for at least the term of the guarantee
d. Include a cross-default provision in its first-tier and guaranteed-loan documents
a. Submittal of Single Application for Assistance Form
b. Approval of LVEDC Loan Committee
c. Approval of LVEDC Board of Directors
