Machinery and Equipment Loan Fund – Chester County Economic Development Council

Last Updated on

Quick Reference

Areas Served: Chester County

The Chester County Economic Development Council (CCEDC) offers a MELF (Machinery & Equipment Loan Fund) Loan.

CCEDC is the designated provider in Chester County, Pennsylvania to make this low interest financing program available to eligible businesses.

Eligible Applicants
• Manufacturing & Industrial Enterprises
• Mining
• Production Agriculture
• Information Technology
• Biotechnology
• Medical facilities Eligible Uses
• Acquire and install machinery & equipment
• Acquire livestock (agriculture) Loan Amount $5,000,000 or 50% of the total project cost, whichever is less Terms
• Term of the Loan matches life of asset:
• Up to 10 years for machinery and equipment Rate Agricultural producers located in Agricultural Security Areas are eligible for a 1% rate reduction.

Private Financing Private sector match required Term must be the same as MELF loan or longer.

Line of credit cannot be used as a private sector match.

Collateral Loans are to be secured by lien positions on collateral at the highest level of priority which can accommodate the borrower’s ability to raise sufficient debt and equity capital.

Personal guarantees from principals and spouses (20% or more ownership) of the company will be required except under unusual circumstances.

Job Creation Criteria Except loans to agricultural producers and medical facilities, for each $25,000 of loan proceeds, at least one full-time job must be created or retained at the project site within three year after the MELF loan has closed.

Timing Loan review and approval approximately 6-8 weeks after a complete application is submitted to the Department of Community & Economic Development.

MELF Loan Fees
• The State charges a 1% non-refundable commitment fee of the approved loan amount.

• CCEDC may charge a fee for assistance in application and approval process to be negotiated on a case-by-case basis.

Contact Information
Chester County Economic Development Council
Address: 737 Constitution Dr
City: Exton
State: Pennsylvania

Website: http://www.cceconomicdevelopment.com/services/financing/

Subscribe Now to the 60-day Startup Challenge!

Subscribe Now to the 60-day Startup Challenge!