Harrisburg, Pa. (March 14, 2023)– The Capital Region Economic Development Corporation (CREDC) has announced its participation with five other economic development organizations in securing $20 million through the State’s Small Business Credit Initiative, which has been named “The Pennsylvania Catalyst Loan Fund.” This funding will be made available to lend through 3 tranches should the Commonwealth meet utilization requirements. Those include loaning 5.7% of the funds to qualified “Very Small Businesses” (those with 10 or fewer workers) and 31.29% to SEDI (Socially and Economically Disadvantaged Individuals) Borrowers.
The first tranche of roughly $6 million for all participating economic development organizations is open for application now. $1.2 million of that tranche is currently reserved for qualifying small businesses in CREDC’s service area of Cumberland, Dauphin, and Perry Counties. If all three tranches can be accessed, a total of $4 million will be reserved for lending in these 3 counties.
To be eligible to apply for the Pennsylvania Catalyst Loan Fund a small business must meet the following requirements:
- Be located and operate in the state of Pennsylvania
- Meet the definition of a small business according to the SBA size standards
- Have a demonstrated need for credit
- Be a for-profit business
Funds can be used to support many sorts of business needs such as:
- Working Capital
- Inventory & Supplies
- Wages
- Fixed Assets
- Soft Costs
For each dollar loaned by the Pennsylvania Catalyst Loan Fund, one dollar must also be loaned from a private credit source as a match. CREDC and the partnering economic development organizations are working diligently to identify private lending sources which are interested in supporting this program and the small businesses of our region.
The State’s Small Business Credit Initiative comes from the American Rescue Plan Act of 2021 (ARPA) which included provisions to establish loan funds to help small businesses recover and rebuild in response to the impact of COVID-19. The Pennsylvania Catalyst Loan Fund is sourced from this larger program and is focused on improving access to credit for businesses that have struggled to obtain credit in the past.
For assistance determining eligibility and applying for the loan, please contact Anita Weikel, Economic Development Lending Officer, Capital Regional Economic Development Corporation at aweikel@hbgrc.org.
About Harrisburg Regional Chamber & CREDC
Harrisburg Regional Chamber & CREDC serves as a catalyst for promoting growth and quality of life in Cumberland, Dauphin, and Perry Counties through bold leadership, visionary members, and powerful results. Building on its 136-year history, the organization provides a unique blend of business, community/economic development, and advocacy services under one roof to boost economic vitality and livability across the region. The Chamber & CREDC is 5-star accredited by the United States Chamber of Commerce, a distinction achieved by less than five percent of chambers across the nation.
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