Financing Business Growth - Harrisburg Regional Chamber & CREDC

The Capital Region Economic Development Corporation (CREDC) is your gateway to beneficial low interest loan programs designed to support your growing company. As the Certified Economic Development Organization for Cumberland, Dauphin & Perry Counties, CREDC has achieved the Commonwealth’s recognition as an highly qualified and experienced lending organization, approved as your access point to Commonwealth programs. By partnering with a highly regarded Certified Development Corporation, CREDC also facilitates your access to the U.S. Small Business Administration’s 504 Direct Loan Program. CREDC’s staff will work directly loan applicants to guide them through the application process, while working hand-in-hand with the applicant’s financial institution to ensure a successful project.

INTEREST RATES – as low as 2%, currently averaging around 4.75% – Fixed for up to 25 years – Amortizations up to 25 years

Rates vary by loan program and use of funds

BENEFITS FOR BUSINESSES

Increase financial growth for your business through programs that help you…

Save money by taking advantage of lower interest rates
Keep more cash in-hand through reduced equity requirements
Gain financial stability through longer fixed interest rate periods
Increase your ‘bankability’ by spreading the risk between your financial institution and a CREDC loan

BENEFITS FOR FINANCIAL INSTITUTIONS

Create value for you customers and create a stronger borrower for you that…

Saves money using lower than market interest rates on part of the financing
Retains liquidity and cushion by putting less cash in each deal
Finds stability in fixed interest rates up to 25 years
Provides you with less exposure and better loan to value ratios

Loan Programs

PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs.

This program could provide eligible businesses with eligible projects:

Up to 50% PIDA financing on eligible costs
Fixed interest rates up to 15 years
Amortizations up to 20 years
In conjunction with a willing financial institution and satisfactory credit criteria, up to 100% financing may be possible.

RATES:

4.25 – 5.25% on applications submitted to PIDA between 4/1/2024 and 6/30/2024

ELIGIBILITY:

Business types:
- Agricultural ProcessorsAgricultural ProducersIndustrial EnterprisesManufacturing EnterprisesResearch & Development EnterprisesHospitality EnterprisesDefense Conversion EnterprisesRecycling EnterprisesComputer-Related Services EnterprisesConstruction EnterprisesChild Day-Care EnterprisesService & Mercantile Enterprises locating in distressed municipalitiesMulti-Tenant Industrial Real Estate Developers
- Exporting Activities
Uses of funds:
- Real Estate Costs including acquisition, construction and renovationMachinery & Equipment CostsWorking Capital Lines of Credit CostsAccounts Receivable Lines of Credit Costs
- Pollution Prevention and Energy Efficiency Costs
Job creation and retention requirements:
- One full time job must be created or retained within 3 years for every $75,000 borrowed from the PIDA program
- This job ratio requirement pertains to most but not all projects.
Private Match:
- For every dollar borrowed from PIDA, at least one dollar from private sources must be borrowed or invested into the eligible project costs

Special Note – This Program encompasses several different loan pools with their own criteria and rules. The details provided here are not all encompassing. Please contact CREDC to see if your business and project meet all criteria.

More about the Pennsylvania Industrial Development Authority program

The SBA 504 Loan program is a powerful economic development tool that offers small businesses another avenue for business financing while promoting business growth and job creation.

This program could provide eligible business & projects:

Up to 40% SBA 504 financing on eligible costs
SBA related costs are financed in addition to the 40% of eligible project costs
Fixed interest rates and amortizations up to 25 years
In conjunction with a willing financial institution, up to 90% financing may be possible.

RATES:

Effective Rates on the latest funding round in October 2023

6.28% – 25 years
6.36% – 20 years
6.60% – 10 years

ELIGIBILITY:

Business types:
- Any for-profit business that meets the SBA’s definition of a Small Business (which is actually quite large) with several exceptions including passive companies and certain prohibited industries such as gambling as one example.
Use of funds:
- Real Estate Costs including acquisition, construction, and renovation
- Fixed Asset acquisition such as machinery & equipment
- Refinancing
Jobs creation and retention requirements:
- One full time equivalent job opportunity must be created of retained within 2 years for every $65,000 borrowed from the SBA 504 program.
- Exceptions include:
  - Same for every $75,000 borrowed for businesses located in Special Geographic Areas
  - Same for every $100,000 borrowed for small manufacturers
  - No job requirement pertains to borrowers meeting a Community Development or Public Policy goal
  - The lending company may choose to apply these ratio requirements across their portfolio of loans rather than on a project by project basis
Partnering Lender requirement:
- At least 50% of eligible project costs must be financed by a private financial institution holding 1^st lien position on project collateral

Special Note – This Program is very involved with may rules governed by the SBA’s Standard Operating Procedures containing over 400 pages of information and detail. The information presented here is not all encompassing. Please contact CREDC to see if your business and project meet all criteria.

More about the SBA 504 program

CREDC maintains an Enterprise Zone revolving loan fund that resulted from the administration of the former Harrisburg Technology Corridor Enterprise Zone. There are zones located within each of the three counties within our region. View the map below for zone geographies.

This program could provide eligible businesses and projects:

Up to 50% Enterprise Zone financing on eligible costs
Fixed interest rates up to 15 years
Amortizations up to 20 years
In conjunction with a willing financial institution, up to 100% financing may be possible.

RATES:

4.50 – 5.50% on applications submitted to CREDC Between 1/1/2024 and 3/31/2024

ELIGIBILITY:

Business types:
- Those located in the Enterprise Zone
- Targeted industries include Technology, Industrial, Manufacturing, and Commercial and Professional Services
- Owner Occupied Brownfields redevelopment
Use of funds:
- Real Estate Costs including acquisition, construction, and renovation
- Machinery and Equipment Costs
Job creation and retention requirements:
- One full-time job to be created within 3 years for every $50,000 loaned from the program

AND/OR

One full-time job to be retained within 3 years for every $35,000 loaned from the program
Private Match:
- For every dollar borrowed from the Enterprise Zone program, at least one dollar from private sources must be borrowed or invested into the eligible project costs

Special Note – This Program has some flexibility with it, but it is still governed by many of the original rules of the Enterprise Zone. The details provided here are not all encompassing. Please contact CREDC to see if your business and project meet all criteria.

The Pennsylvania Catalyst Loan Fund, funded through Pennsylvania’s State Small Business Credit Initiative, is a program designed to support Socially and Economically Disadvantaged Individual Borrowers as well as Very Small Businesses. This fund, which represents a joint application for funding from 8 counties including CREDC’s 3 counties of Cumberland, Dauphin & Perry Counties, is being managed by Chester County Economic Development Corporation in manner that is designed to better support working capital needs than any other program in CREDC’s toolbox

This program could provide eligible businesses and projects:

Up to 50% Catalyst Loan Fund financing on eligible costs
Fixed interest rates up to 5 years
Amortizations up to 15 years
In conjunction with a willing financial institution, up to 100% financing may be possible.

RATES:

5.50% as of 11/1/2023

ELIGIBILITY:

Business types:
- Any for profit business meeting the SBA’s definition of a small business
Use of funds:
- Real Estate Costs including acquisition, construction, and renovation
- Machinery and Equipment Costs
- Working Capital
Job creation and retention requirements:
- There are no job retention or creation requirements
Private Credit Match:
- For every dollar borrowed from the PA Catalyst Loan Fund, at least one dollar must be provided towards eligible project costs from a source of private credit. Examples include a loan from a private financial institution, seller financed appropriately documented and funded, or a loan from a friend or family member properly documented and funded

Special Note – This Program is governed by both Federal and Commonwealth rules. The details provided here are not all encompassing. Please contact CREDC to see if your business and project meet all criteria.

The Pennsylvania Industrial Sites Reuse Lending Program is a valuable resource in financing the assessment and remediation of contaminated sites.

This program could provide eligible businesses and projects:

Up to 75% ISRP financing on eligible costs
Fixed interest rates up to 5 years for assessments and 15 years for remediation
Amortizations up to 5 years for assessments and 15 years for remediation
In conjunction with a willing financial institution, up to 100% financing may be possible.

RATES:

Currently 2%

ELIGIBILITY:

Business types:
- Public entities
- Private nonprofit economic development entities
- Companies involved in reuse of former industrial land
- Entities that did not cause or contribute to the environmental contamination
Use of funds:
- Phase I, II, and III environmental assessments
- Remediation of hazardous substances
Job creation and retention requirements:
- There are no job retention or creation requirements
Match Requirements:
- A 25% match is required for grant and loan projects

Special Note – This Program is governed by additional Commonwealth rules from both the PA Department of Community and Economic Development and the PA Department of Environmental Protection. The details provided here are not all encompassing. Please contact CREDC to see if your business and project meet all criteria.

Banking Partners

CREDC is happy to partner with any financial institution to create an advantageous financing structure for their borrowers. Below are some of the banks that we have completed projects with most recently.

Recent Loan Success Stories

Celebrating Local Businesses: Four Success Stories of the Pennsylvania Catalyst Loan Fund

In a remarkable testament to community growth and economic resilience, the Pennsylvania Catalyst Loan Fund, administered by the Capital Region…

Two Prominent Local Businesses Secure Financing Through Pennsylvania Catalyst Loan Fund

Harrisburg, PA – September 26, 2023 – The Capital Region Economic Development Corporation (CREDC) is thrilled to announce that two…

Private Healthcare Business in Cumberland County Receives PIDA Loan Approval to Expand

FOR IMMEDIATE RELEASE Private Healthcare Business in Cumberland County Receives PIDA Loan Approval to Expand Early Bird Therapy, LLC, and…

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INTEREST RATES – as low as 2%, currently averaging around 4.75% – Fixed for up to 25 years – Amortizations up to 25 years

BENEFITS FOR BUSINESSES

BENEFITS FOR FINANCIAL INSTITUTIONS

Loan Programs

Banking Partners

Recent Loan Success Stories

Schedule a Meeting With CREDC

Schedule a Meeting With CREDC

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