THE MINORITY BUSINESS DEVELOPMENT FUND program is designed to stimulate the creation, retention and expansion of minority owned businesses and to create jobs in Pennsylvania . MBDF provides low-interest loans to finance a portion of the costs of land, building, machinery and equipment, and working capital to minority business enterprises unable to fully finance these projects with equity, bank financing, or other private and public sources. CREDC prefers that the company or principals contribute equity toward the total project. The client should be working with a financial institution or other source of investment.

Eligible Applicants

An eligible applicant is a for profit business enterprise that is owned or controlled by one or more socially or economically disadvantaged persons who are residents of the Commonwealth of Pennsylvania. The disadvantaged may arise for culture, racial, chronic economic circumstances or background or other similar cause. Such persons include, but are not limited to: African American, Hispanic Americans, Asian Americans, Native Americans, Eskimos, and Aleuts.

Eligible Uses

• Land acquisition and related costs
• Building acquisition, construction, rehabilitation, and related costs.
• Machinery and Equipment
• Working capital

Ineligible Uses

• Restaurants, except for regional or national franchises
• A bar, tavern or other business enterprise established for the principal purpose of dispensing alcoholic beverages.
• Refinancing any portion of the total project cost, except for short-term “bridge” financing
• Speculation in any type of property, real or personal, except for new construction where 49% of the project will be leased to MBDF eligible businesses.
• Related party transactions.
• Projects which have already commenced.

Terms

• Interest rate: 5.00%- 8.00% (based on 10-yr Treasury at time of application)
• Up to 15 year term for real estate
• Up to 10 year term for machinery & equipment
• Up to 3 years for working capital
• One job needs retained or created per $15,000 borrowed

Fees

• $250 application fee
• 1.00% commitment fee
• $900 document preparation fee

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In you have any on the loan process or loan program, contact Kiana Laurin at 717.213.5026 or klaurin@hbgrc.org