Governor Wolf Announces New Pennsylvania Industrial Development Authority Business Loan Approvals
December 07, 2016
Harrisburg, PA – Governor Tom Wolf and Department of Community and Economic Development Secretary Dennis Davin today announced that new state investments through the Pennsylvania Industrial Development Authority (PIDA) program will help spur statewide development and create and retain jobs.
“We all know that access to capital helps small businesses succeed and creates jobs, which is why the PIDA program is so incredibly important in the commonwealth,” said Governor Tom Wolf. “The funding announced today will not only support critical projects, but will stimulate local economies throughout the state, which in turn contribute to a thriving business community in Pennsylvania.”
Over the last month PIDA approved more than $1.3 million in low-interest loans for four projects in Berks, Bradford, and Lancaster counties that will generate more than $3.2 million in private investments.
“The PIDA loans approved during the past month represent a wide scope of industrial and agricultural enterprises, ranging from automotive fabrication and maintenance to wood pallet production,” said Sec. Davin. “By providing access to crucial capital, the PIDA program supports the growth and prosperity of Pennsylvania businesses.”
In 2016, PIDA has approved $46.8 million in low-interest loans that have resulted in $100.2 million in private investment and supported 1,842 created and retained full-time jobs.
The following loans were approved during the last month:
The Greater Berks Development Fund was approved for two loans at the December meeting:
- A $449,723, 15-year loan at 2.25 percent for the first seven years on behalf of Levan Machine Co., Inc. for the construction of a 8,360-square-foot building that includes three bays for truck work and office and storage space on land that was purchased in April 2015 at 3417 Pricetown Road, Ruscombmanor Township. The company provides custom truck body fabrication and maintenance. The total project cost is estimated to be $899,447 and will retain 22 existing positions.
- A $100,000, 3-year loan at 3.00 percent on behalf Northeast Custom Pallets, Inc. to assist with working capital needs associated with the acquisition of the Timber Pallet and Lumber Company located at 203 Shoey Road, Mohrsville. The total project cost is estimated to be $480,000 and will retain four existing positions.
The Northern Tier Regional Planning and Development Commission was awarded a $400,000, 15-year loan at 2.25 percent for the first seven years on behalf of Makin Bacon LLC to construct a 41,082-square-foot barn designed to accommodate 4,800 hogs at 1806-1808 Baily Corners Road, Granville Township. The farm is currently a dairy operation that consists of 57 cows, but this project will allow for diversification with the addition of hogs. Makin Bacon LLC has secured a contract with Country View Family Farms for six years with an automatic six-year renewal period. The total project cost is estimated to be $1,380,000.
The EDC Finance Corporation was awarded a $400,000, 15-year loan at 3.00 percent on behalf of Brubaker Run Farms, LLC to acquire a 61.7 acre farm with an existing, operational 40,572-square-foot duck house at 2963 North Colebrook Road, Rapho Township. Brubaker Run Farms, LLC will produce approximately 254,800 ducks annually. The total project cost is estimated to be $1,870,000.
PIDA is an independent authority staffed and regulated through the Department of Community and Economic Development. The Authority provides capital for building acquisition, construction and renovation work, machinery and equipment loans along with working capital line of credit loans, primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.
Qualified applicants are eligible to select either a reset rate of 2.25 percent for the first seven years or a fixed rate of 3.00 percent for real estate financing, 3.00 percent fixed rate for equipment loans, 3.00 percent fixed rate loans for a 12-month period for working capital and accounts receivable lines of credit, and 2.00 percent fixed rate for pollution prevention and energy efficient loans. Rates will be in effect for loan applications received through December 31, 2016.
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