The Pennsylvania Minority Business Development Authority (PMBDA) Program is designed to stimulate the creation, retention and expansion of minority owned businesses and to create jobs in Pennsylvania.
PMBDA provides low-interest loans to finance a portion of the costs of land, building, machinery and equipment, and working capital to minority business enterprises unable to fully finance these projects with equity, bank financing, or other private and public sources.
Eligible Applicants An eligible applicant is a for-profit business enter prise that is owned or controlled by one or more socially or economically disadvantaged persons who are residents of this Commonwealth.
The disadvantage, regardless of sex or marital status, may arise from cultural, racial, chronic economic circum stances or background or other similar cause.
Such persons include, but are not limited to: African Americans, Hispanic Americans, Asian Americans, Native Americans, Eskimos, and Aleuts.
Eligible Costs 1. Land Costs: Land costs directly associated with the purchase, renovation, or new construction of a building or production facility, including, but not limited to, acquisition, site preparation and testing, utilities, site mapping, landscaping, legal, and other related costs.
2. Building Costs: Building costs may include, but are not limited to, building acquisition, construction, rehabilitation, engineering, architectural, legal, and other related costs.
New con struction projects are permitted to lease up to 49% of the space to tenants who would qualify as eligible applicants for PMBDA funds.
3. Machinery and Equipment Costs: Machinery and equipment costs may include, but are not limited to, costs of acquisition, delivery, and installation.
Such costs are eligible if associated with acquisition of machinery and equipment that the applicant has newly purchased, even if such machinery had previously been in service with an unrelated user.
4. Working Capital: Capital used by a business for operations, including with out limitation, personnel and training costs.
Terms Land and Building: Repay ment period up to ten (10) years.
Machinery and Equip ment: Repay ment period up to seven (7) years.
Working Capital: Repay ment period up to three (3) years.
In projects where two or more uses of PMBDA funds are planned, loan terms may be blended.
Loan Size PMBDA will not fund more than 75% of the eligible project cost, subject to the following limitations: 1. The maximum amount of a loan for a project may not exceed $250,000. If a project is located within an Enterprise Zone as designated by the Department of Community and Economic Development (DCED) or is located within a redevelopment area, the maximum amount of a loan may not exceed $350,000. 2. If a project involves an industrial enterprise, a manufacturing enterprise, advanced technology, a regional or National franchise, international trade, or business acquisitions, the maximum amount of a loan may not exceed $500,000. If such a project is located within an Enterprise Zone as designated by DCED or is located within a redevelopment area, the maximum amount of a loan may not exceed $750,000. Interest Rate The interest rate will be not more than one-half of the prevailing prime rate on the date of loan approval but not less than four (4%) percent.
Program guidelines can be found here – http://www.
Pennsylvania Minority Business Development Authority
Address: 1837 University Circle