Financing – Schuylkill Economic Development Corporation https://www.sed-co.com Bringing people together to stimulate economic development in Schuylkill County Tue, 02 May 2023 17:56:36 +0000 en-US hourly 1 https://wordpress.org/?v=7.0.3 https://www.sed-co.com/wp-content/uploads/2020/07/cropped-sedco_icon-512-32x32.png Financing – Schuylkill Economic Development Corporation https://www.sed-co.com 32 32 PIDA at a Glance https://www.sed-co.com/pida-at-a-glance/ Tue, 02 May 2023 17:56:36 +0000 https://www.sed-co.com/?p=1688

Pennsylvania Industrial Development Authority (PIDA)

The Pennsylvania Industrial Development Authority (PIDA) provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of Certified Economic Development Organizations (CEDOs) that partner with PIDA to administer the program. SEDCO is a CEDO serving all of Schuylkill County.

Eligible Enterprise Types

  • Manufacturing Enterprises
  • Industrial Enterprises
  • Healthcare Enterprises
  • Agricultural Processors
  • R&D Enterprises

Funding Details

A loan made from the PIDA Fund must be secured by no less than a second or participating second mortgage on the project premises. The PIDA Fund is utilized for real estate projects where the loan amount is greater than $400,000 or the eligible operating entity has more than 100 full-time employees worldwide.

Multi-Tenant Facility Projects

Real estate acquisition, construction or renovation projects where the facility will house two or more eligible enterprise types as indicated above.

  • 50% of the eligible total project costs up to $2,250,000 when the PIDA loan is secured by a first or participating first mortgage on the project premises.
  • 40% of the eligible total project costs up to $2,250,000 when the PIDA loan is secured by a second or participating second mortgage on the project premises.
  • One tenant cannot occupy more than 80% of the building’s total square footage.
  • No more than 15% of the building’s total square footage can be occupied by an ineligible tenant.

Industrial Park Projects

Involving the acquisition and development of land for eventual sale to eligible enterprise types as indicated above.

  • 75% of the eligible total project costs up to $2,250,000 and the loan must be secured by a first or participating first mortgage on the project premises.
  • Multi-Tenant and Industrial Park projects are exempt from job requirements.
  • Typically, a feasibility study is required when the project is speculative in nature. Please consult with PIDA if requesting a waiver of this policy.
]]> Industrial Revenue Bonds https://www.sed-co.com/industrial-revenue-bonds/ Fri, 01 May 2020 15:06:50 +0000 https://www.sed-co.com/?page_id=78 PURPOSE
Benefits manufacturing companies by providing low cost capital for land, acquisition, construction, and renovation of facilities and equipment. The Schuylkill County Industrial Development Authority was created to provide a vehicle for securing tax exempt financing through private sector sources. Lenders benefit from interest rate exemption from certain state and federal taxes; borrowers benefit because of the lenders ability to lend at a lower interest rate than conventional interest rates. Loan proceeds can only be used for manufacturing projects and can cover building acquisition, new construction and renovation costs, as well as machinery and equipment. Rates and terms are subject to market conditions and I.R.S. regulations. Security for the loan is negotiated directly between the company and the lender or underwriter. A $10 million single project limit and a $40 million aggregate limit apply. Due to recent changes in Federal tax regulations, financing under this program should be discussed with both legal and tax advisors prior to application submission. The normal application processing time is about 45 days.

FOR MORE INFORMATION
Our colleagues at the Chester County Industrial Development Authority have compiled information about tax exempt financing in greater detail here link-external.

]]> Opportunity Fund https://www.sed-co.com/opportunity-fund/ Fri, 01 May 2020 15:05:23 +0000 https://www.sed-co.com/?page_id=81 PURPOSE
Provides grant funds to companies or on behalf of companies that will create or preserve jobs within the Commonwealth. The program is intended to deal with significant projects that offer substantial economic impact either for the Commonwealth as a whole or for the locality or region in which the company will locate. Opportunity Grant funds may be used to finance job training, infrastructure, land and building improvements, machinery and equipment, working capital and environmental assessment and remediation. This program is marketed exclusively through the Governor’s Action Team. Requires creation or preservation of 100 full-time jobs located in communities or counties suffering from severe economic distress; or provide a substantial number of new employment opportunities within a high-growth industry.

FOR MORE INFORMATION

Opportunity Grants

]]> Job Creation Tax Credit https://www.sed-co.com/job-creation-tax-credit/ Fri, 01 May 2020 15:03:09 +0000 https://www.sed-co.com/?page_id=80 Provides a $1,000 tax credit/job to approved businesses that agree to create or preserve new jobs in the Commonwealth within three years. A business must agree to create at least 25 new jobs or new jobs equaling at least 20% of the existing work force. Twenty-five per cent of the tax credits allocated each year must go to businesses with fewer than 26 employees. The tax credits may not be utilized by a business until the jobs are actually created. Funding is competitive and is offered through the Governor’s Action Team.

FOR MORE INFORMATION

link-external Job Creation Tax Credits

You Hire – You Train – We Pay

On-the-Job Training (OJT) offers employers an inexpensive way to train new employees. Sponsored by the Luzerne/Schuylkill Workforce Investment Board, and administered by PA CareerLink staff, the OJT Program is a federal program that is simple to use and offers qualified employers the opportunity to receive a 50% wage reimbursement on Workforce Investment Act (WIA) eligible hires.

Because training can be costly, OJT reduces that cost by paying your company 50% of a new trainee’s wages for up to 6 months or a maximum $5,000. The amount of reimbursable wages depends on the training needed by the new hire. PA CareerLink staff screen potential hires for program eligibility, work with you on developing a mutually agreed-upon training contract, handle most of the paperwork, and initiate a reimbursement schedule for monthly payments made directly to your company. A signed OJT contract must be in place by the trainee’s first day of work. Anytime your company is hiring full-time, regularly scheduled positions – at least 30 hours per week and at least $10 per hour – OJT can be considered.

To assist employers in finding qualified workers who have the basic skills necessary to learn on-the-job, the PA CareerLink provides WorkKeys National Career Readiness Certificate testing. WorkKeys is a job skills assessment system that helps employers select, hire, train, and retain a high-performance workforce.

FOR MORE INFORMATION
For more information about OJT, WorkKeys, and other PA CareerLink business services, please contact Frank Nieddu at 570-622-5253 ext. 140 or via email at fnieddu@redcogrp.com.

]]> Industrial Site Reuse Program https://www.sed-co.com/industrial-site-reuse-program/ Fri, 01 May 2020 15:02:09 +0000 https://www.sed-co.com/?page_id=82 PURPOSE
Provide low-interest loans and grants for environmental assessments and remediation of former industrial land.

ELIGIBLE USES
Phase I, II, III, environmental assessments and remediation of hazardous substances. Eligible Applicants Public and private economic development entities, private companies and real estate developers. Loan Parameters Grants and loans up to the lesser of 75% of the project cost or $250,000 for environmental assessments and $1 million for remediation.

LOAN CONDITIONS
Interest rates of 2% with terms of up to five years for assessments and 15 years for remediation projects. A 25% match is required for grant and loan projects.

FOR MORE INFORMATION

link-external Industrial Site Reuse Program

]]> MetroAction https://www.sed-co.com/metroaction/ Wed, 13 Aug 2014 14:59:39 +0000 https://www.sed-co.com/?page_id=130 MetroAction is a non-profit community development organization dedicated to providing small business loans and business development assistance throughout northeastern Pennsylvania (NEPA).

MetroAction’s lending, training and recognition programs are helping small businesses in northeastern Pennsylvania build the strength and independence that they need to be successful. Their programs and resources help create jobs, increase the availability of quality child care and foster the entrepreneurial spirit that our region is known for.

Many of the entrepreneurs using our programs lack start-up capital and cannot save money fast enough to acquire the funding they need to finance their small business. MetroAction is an alternative, yet successful and comprehensive, resource for small business financing, small business assistance and business training. Through our many programs, we are matching businesses with appropriate lending resources, providing hundreds of hours of business training and counseling while honoring small business success in our communities.

FOR MORE INFORMATION

MetroAction

]]> SBA 7A Loans https://www.sed-co.com/sba-7a-loans/ Wed, 13 Aug 2014 14:51:44 +0000 https://www.sed-co.com/?page_id=129 The SBA 7A Loan Program includes financial help for businesses with special requirements.

The 7(a) Loan Program is the U.S. Small Business Association’s primary program for helping start-up and existing small businesses with financing guaranteed for a variety of general business purposes. SBA does not make loans itself, but rather guarantees loans made by participating lending institutions. In this way, taxpayer funds are only used in the event of borrower default. This reduces the risk to the lender but not to the borrower, who remains obligated for the full debt, even in the event of default.

FOR MORE INFORMATION

SBA 7A Loan Program

SBA 7A Terms and Conditions

SBA 7A Eligibility

]]> MELF https://www.sed-co.com/melf/ Wed, 13 Aug 2014 14:28:05 +0000 https://www.sed-co.com/?page_id=128 The Machinery and Equipment Loan Fund offers low-interest financing for industrial entities. The funds may be used for the acquisition and installation of new or used machinery and equipment or to upgrade existing machinery and equipment.

FOR MORE INFORMATION

MELF Incentive

]]> Small Business Financing https://www.sed-co.com/small-business-financing/ Wed, 13 Aug 2014 12:19:41 +0000 https://www.sed-co.com/?page_id=125

smallBusiness

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industrialFinancing

 

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