The Department of Community and Economic Development (DCED) has announced it is lowering the interest rates for the Machinery and Equipment Loan Fund (MELF), the Small Business First Program (SBF), the Pollution Prevention Assistance Program (PPAA), and the Export Financing Program (EFP) from 2.75 percent to 1.50 percent. Additionally, the Pennsylvania Industrial Development Authority (PIDA) approved lowering its interest rates to 1.50 percent.
DCED and PIDA will also waive its fees charged to the borrowers. The new rates will initially be in place for applications received through March 31, 2013. By reducing interest rates and the cost of borrowing, DCED and PIDA hopes to encourage new capital investment, provide critical access to capital, and free up operating cash to support new hiring.
A great example of a PIDC client who used one of these financing sources in 2012 was United Scrap Metal Inc. United Scrap used a PIDA loan to help acquire and renovate an existing 112,500-square-foot office building in the Hunting Park section of Philadelphia. The company, a large and successful women business enterprise (WBE), is a wholesale goods and scrap metal recycler headquartered in Cicero, Illinois. Philadelphia and the Hunting Park building will be a second location for the company which will create 60 new jobs within the next three years. PIDC is happy to have assisted United Scrap Metal Inc. in acquiring their PIDA loan and welcomes them to Philadelphia.
For more information on these programs and how they may be able to assist your business, please contact Mike Cooper, Assistant Vice President, Market Development at 215.496.8183 or firstname.lastname@example.org.