Eligible Applicants Applicants can be private profit or non-profit corporations, or local governmental entities with community development projects.
However, in selecting projects, preference will be given to proposals from the private sector.
Entities with more than 100 employees may qualify.
Eligible Use Land acquisition, site improvements, acquisition of existing building, building renovation, leasehold improvements, new construction, machinery & equipment, working capital, refinancing (restrictions apply), and certain soft costs.
Loan Amount $250,000 or 40% of the eligible project costs, whichever is less.
Intrest Rate To be fixed for the life of the loan at two (2) percentage points under the highest Wall Street Journal Prime Lending Rate as published at the date of approval.
However, at no time can the rate be lower than 4%.
Term Three (3) years for working capital; seven (7) years for machinery and equipment; 10 years for real estate.
Equity Requirements For existing businesses (more than two years of operations), borrower must provide a minimum of 10% of the project coSt. For start-ups or changes in ownership, borrower may be required to provide 15% of the project coSt. Job Criteria One job to be created or in some cases retained for every $25,000 of Intermediary Relending Program funds in the project within three years of disbursement.
Fees SEDA-COG charges a 1% commitment fee, a 1% closing fee, and a minimum $500 legal fee.
If you feel that you meet these requirements, and your business is located (or will be locating) in one of the following counties in Pennsylvania: Centre, Clinton, Mifflin, Juniata, Perry, Snyder, Union, Lycoming, Montour, Northumberland and Columbia.
SEDA – Council of Governments
Address: 201 Furnace Road