Loan Programs and Business Incentives

Redevelopment Authority Incentive Loan Program

The Redevelopment Authority Incentive Loan Fund is designed to provide incentive for existing businesses to relocate to Washington County, Pennsylvania. Eligible companies must generate substantial increase in employment, tax revenues or other measure of economic activity. Applicants must be owners or purchasers of commercial or industrial projects. Businesses must be service, manufacturing or industrial operation, excluding warehouse and distribution centers. Applicants capital investment must be $5,000,000 or more in the project for which financial assistance is being requested. The minimum loan amount is $100,000 and the maximum amount is $500,000. The maximum term for the loan is five years. Within two years from the date of closing applicants must create one new full-time job of every $1,000 borrowed with a minimum of 100 jobs paying at least 125% of median income for the area.

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Washington County Revolving Loan Fund

The Washington County Revolving Loan Fund is designed to promote and encourage investment and job growth in the private business sectors of Washington County. Eligible companies can request loans through the loan fund to assist in supporting the acquisition of land and buildings and the construction or rehabilitation of buildings, including any environmental remediation. Applicants must be private companies, who are owners or purchasers of commercial or industrial projects located in or currently in the process of locating in Washington County. Businesses must be industrial, manufacturing, research and development, high tech firms, or any other business enterprise that offers a significant economic impact to Washington County. The term of the loan is for 15 years and applicants must commit to creating one new full-time job for every $35,000 borrowed within three years of closing date. The maximum loan amount is $200,000 or 25% of the total project cost.

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Mid Mon Valley Enterprise Zone Revolving Loan Fund

The Mid Mon Valley Revolving Loan Fund is designed to promote and encourage investment and job growth in the private business sectors of the Mid Mon Valley Enterprise Zone. Eligible companies can request loans through the loan fund to assist in supporting the acquisition of land or buildings, and the construction or rehabilitation of buildings, including any environmental remediation. Applicants must be private companies, who are owners or purchasers of commercial or industrial projects located in or currently in the process of location in the Mid Mon Valley Enterprise Zone. Businesses must be industrial, manufacturing, research and development, high tech firms, or any other business enterprise that offers a significant economic impact to the Mid Mon Valley Enterprise Zone. The term of the loan is for 15 years and applicants must commit to creating one new full-time job for every $35,000 borrowed within three year of closing date. The maximum loan amount is $200,000 or 25% of the total project cost.

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Regional Assistance Loans

The following four loan programs are available through the Washington County Council on Economic Development (WCCED)

1. GAP LOAN
Provides gap financing of up to $50,000 for companies located in Washington County.
CDFI-TECH 21 LOAN Provides loans of up to $100,000 for companies engaged in manufacturing, advanced materials, biotechnology, infotech and environmental technology.

2. USDA/INTERMEDIARY RELENDING PROGRAM
Provides loans of up to $100,000 to borrowers to enhance growth in employment and economic activity within the County.

3. SMALL BUSINESS ADMINISTRATION (SBA) MICROLOAN PROGRAM
Provides up to $35,000 to borrowers to encourage the creation and growth of new and expanding small businesses.

4. PENNSYLVANIA WORKS!
Provides commercial loans of up to $100,000 for companies that derive at least 75% of their business outside the region. Borrowers must demonstrate job creation and retention.

 

State Assistance

LOANS

PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY (PIDA)
The lead job creation/retention agency of the Commonwealth of Pennsylvania offers low-interest loan financing through Industrial Development Corporations for land and building acquisition, construction and renovation, resulting in the creation or retention of jobs. Additional information regarding loan programs available through PIDA can be obtained through the Middle Monongahela Industrial Development Association at
or the Washington Industrial Development Corporation at .

MACHINERY AND EQUIPMENT LOAN FUND (MELF)
Provides low-interest loan financing to acquire and install new or used machinery and equipment or to upgrade existing machinery and equipment. Contact the Middle Monongahela Industrial Development Association at for more information. For more information and application guidelines for any of the following programs, contact: .

SMALL BUSINESS FIRST (SBF)
Provides funding for small businesses, including low-interest loan financing for land and building acquisition and construction; machinery and equipment purchases and working capital.

EXPORT FINANCE PROGRAM (EFP)
Provides working capital and accounts receivable financing in amounts of up to $350,000 for beginning or expanding small businesses.

PENNSYLVANIA MINORITY BUSINESS DEVELOPMENT AUTHORITY (PMBDA)
Provides low-interest loan financing to businesses owned and operated by ethnic minorities.

PENNSYLVANIA COMMUNITY DEVELOPMENT BANK (PCD BANK)
Provides debt financing for Community Development Financial Institutions (CDFIs). Public funds (25%) are matched with private sector funds (75%) to create a loan pool for eligible CDFIs.

PENNSYLVANIA INFRASTRUCTURE INVESTMENT AUTHORITY (PENNVEST)
Provides low-interest loans for the design, engineering and construction of publicly and privately owned drinking water distribution and treatment facilities, storm water conveyance, and wastewater treatment and collection systems.

UNDERGROUND STORAGE TANK UPGRADE LOAN PROGRAM (USTLP)
Provides low-interest loan financing to business owners of regulated underground storage tanks to meet federal Environmental Protection Agency (EPA) upgrade requirements.

COMMUNITY ECONOMIC DEVELOPMENT LOAN PROGRAM (CED)
Provides low-interest loans for projects in distressed communities, stimulating self-help initiatives and helping people build assets at the individual, family and community levels.

POLLUTION PREVENTION ASSISTANCE ACCOUNT (PPAA)
Provides assistance for small businesses to implement pollution prevention and energy-efficiency projects, enabling these businesses to adopt or install equipment or processes that reduce pollution or energy use.

 

LOAN GUARANTEES

PENNSYLVANIA CAPITAL ACCESS PROGRAM (PennCAP)
Provides a loan guarantee through participating banks. Guarantees can be used to support a wide variety of business purposes.

 

TAX CREDITS/ABATEMENTS

JOB CREATION TAX CREDITS
Provides a $1,000-per-job tax credit to approved businesses that agree to create jobs in the Commonwealth within three years.

ENTERPRISE ZONE TAX CREDITS
Provides tax credits to employers located in enterprise zones.

LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE ACT (LERTA)
Provides local municipalities, school districts and counties abatements on property taxes for up to 10 years.

RESEARCH AND DEVELOPMENT TAX CREDIT
Provides employers qualifying for the federal R&D tax credit a tax credit for up to 10 percent for new research and development investments in Pennsylvania.

KEYSTONE OPPORTUNITY ZONES

Provides tax abatements to designated state and local zones; designed to stimulate job creation and community renewal in some of Pennsylvania’s challenged communities. http://koz.inventpa.com.

 

GRANTS

OPPORTUNITY GRANT PROGRAM
Provides grant funds to create or preserve jobs within the Commonwealth.

INFRASTRUCTURE DEVELOPMENT PROGRAM (IDP)
Provides grant and low-interest loan financing for public and private infrastructure improvements.

RAIL FREIGHT ASSISTANCE
Provides grants to build or repair rail lines and spurs.

BOND FINANCING
The Pennsylvania Economic Development Financing Authority (PEDFA) serves as an issuer of tax-exempt and taxable bonds, both in pooled transactions and stand-alone transitions. Bond funds are loaned to businesses and can be used to finance land, building, equipment, working capital and refinancing. Additional information on PEDFA programs and applications can be obtained through the Middle Monongahela Industrial Development Association at or by contacting the Washington County Industrial Development Authority at (724) 229-8848.

PEDFA BOND FINANCING TAX-EXEMPT
Eligibility: Manufacturing, Nonprofit, Energy, Solid Waste Disposal and Transportation Facilities.
Eligibility Uses: Land and building (acquisition, construction & renovation); machinery & equipment (purchases/installation); designated infrastructure; and tax-exempt bond refunding.
Amounts: Loans no less than $400,000 and no more than $10,000,000 for manufacturers. No upper limit for other projects. Covers up to 100% of project cost.
Terms and Conditions: Set at 85% of prime interest rate—weekly variable interest rate tied to market for tax-exempt bonds. Up to 30-year term. Borrower must secure letter of credit from bank.

PEDFA BOND FINANCING TAXABLE
Eligibility: All types of businesses needing access to low-cost capital.
Eligibility Uses: Land and building (acquisition, construction & renovation); machinery & equipment (purchases/installation); designated infrastructure; refinancing; and working capital.
Amounts: Loans no less than $400,000; up to 100% project cost.
Terms and Conditions: Set at 95% to 100% of prime-weekly variable interest rate tied to market. Term based on negotiated letter of credit. Borrower must secure letter of credit from bank.