The purpose of the Chester, Pennsylvania Small Business Loan Program is to expand economic opportunities and create or retain employment for low to moderate income persons and to promote the growth and development of existing and new business and industry in the City of Chester.
Eligible Uses: Acquisition of land and building, building construction, leasehold improvements, building rehabilitation, machinery and equipment, training costs and working capital.
Eligible Applicants: For-profit businesses that are currently located in Chester or that are locating to Chester.
Loan Amounts: 50% of project coSt. Minimum loan is $5,000. Maximum loan based on source of funding (e.
CDBG funded loan maximum is $100,000).
Terms: Loan terms will be based on the use of funds and can range from one (1) year to fifteen (15) years.
Interest Rate: Fixed rate of three (3) percent.
Fees: Call for fee charge One Percent (1%) Commitment Fee (At Closing) One Percent (1%) Loan Servicing Fee (Monthly) Loan Processing Costs Collateral: Acceptable collateral will be required on all loans sufficient to cover the amount of the loan.
Loans will subordinate to bank loans.
Guarantees: Personal loan guarantees will be required.
Job Creation: One new full time equivalent job for each $25,000 of loan fund must be created.
For CDBG funded loans recipient must agree that 51% of all jobs created will be held by or made available to low to moderate-income individuals.
Job Retention: One full time equivalent job for each $25,000 of loan funds.
For CDBG funded loans recipient must document that without CDBG assistance, the jobs would actually be lost and that at least 51% of the retained jobs are held by low to moderate income person or that, upon turnover, steps will be taken to assure that jobs are filled or made available to low to moderate income individuals.
Monitoring: Loan recipients must: 1) agree to periodic review and monitoring of job creation and job retention efforts; 2) maintain job certification forms, provided by CEDA for a minimum period of one year and a maximum period not to exceed the term of the loan.
Ineligible Uses: Including but not limited to: residential purposes; investment or speculative purposes, including passive real estate ownership; manufacturing or sale of products used in illegal or illicit activities; manufacture, sale or distribution of sexually oriented materials, products or services; religious oriented services or activities; private clubs, hot tub facilities or massage parlors; refinancing of existing indebtedness.
Chester Economic Development Authority
Address: 511 Welsh Street