Economic Development Loan Funds Include:
- PA Department of Community & Economic Development (Small Business First Fund, First Industries First)
- United States Department of Agriculture (Human Health Services, Intermediary Relending Program)
- Economic Development Administration
- Appalachian Regional Commission
Purpose: To provide access to low cost financial assistance for eligible for-profit companies in the Southern Alleghenies region.
Loan Limits: $200,000 or 40% or 50% of the total project cost, whichever is less. Minimum loan is $15,000. Working Capital is limited to $100,000 or 50% of costs, whichever is less.
Interest Rate: Will be below market and is fixed for the term of the loan.
Fees: Up to 1% of the loan amount (minimum of $250) plus all applicable legal, filing and credit report fees.
Eligible Applicants:
- Agricultural Enterprise
- Agricultural Producer
- Industrial Enterprise
- Manufacturing/Industrial Enterprise
- Research and Development Enterprise
- Hospitality Enterprise (including lodging facilities and restaurants)
- Defense Conversion Enterprise
- Recycling Enterprise
- Computer-Related Services Enterprise
- Construction Enterprise (not private homes)
- Child Day-Care Enterprise
- Tourism
- Wholesale/Distribution (<10% retail)/Distribution
- Service Related
Eligible Activities:
- Real Estate Financing
- Equipment Financing
- Working Capital
Additional Conditions:
- One full time equivalent job must be created for every $25,000 borrowed.
- Dollar-for-dollar private sector match is required.
- Loans must be collateralized at the highest position available.
- Matching sources must have same or larger term.
- Applicant and principals must not be delinquent or in default on any existing private or public debt and must be current in payment of all taxes.
- Project may not commence until a complete application is received by Southern Alleghenies unless prior approval is granted.
- Any individual who owns 20% or more of the eligible applicant will be required to personally guaranty the loan.
Ineligible Activities:
- Refinancing existing debt
- Related party transactions
- Real estate speculation
Service Industry Loan Fund:
Purpose: To provide access to low cost financial assistance for business-to-business service companies.
Loan Limits: Lesser of $50,000 or 50% of the eligible project costs. Minimum loan is $15,000.
Interest Rate: Will be below market and is fixed for term of the loan
Fees: Up to 1% of the loan amount (minimum of $250) plus all applicable legal, filing and credit report fees.
Eligible Applicants: Business-to-Business Service Companies
Additional Conditions:
- 10% cash equity required in all projects
- One full time equivalent job must be created for every $25,000 borrowed
- Jobs created must pay at least 20% above the federal minimum wage level
- 1 private sector-financing match required
- Matching sources must have longer terms
- No delinquencies/defaults on existing debt
- Must be current in the payment of all taxes
- Personal guarantees of owners will be required
- $50,000 aggregate financing cap in 12 month period
- SAP&DC working capital is limited to inventory and new personnel costs only
- 75% of sales must be to other businesses
Ineligible Applicants: Retail, Personal, Professional Services