HARRISBURG, Pa., July 18, 2016 /PRNewswire-USNewswire/ -- Department of Community and Economic Development Secretary Dennis Davin today celebrated the move to recapitalize the Business in Our Sites (BOS) program announcing that the Wolf Administration was successful in securing critical funding to support business development efforts.
"Governor Wolf was successful in securing critical revenue for an important business development program with the completion of the 2016-17 budget," said Sec. Davin. "The reallocation of funding from underutilized programs is government that works and I have no doubt that Pennsylvania will have a competitive edge through this action and the creation of an arsenal of ready-to-go sites for development opportunities."
The 2016-17 budget package includes $75 million to recapitalize the Business in Our Sites program to allow Pennsylvania to compete for business expansions and relocations by providing patient capital to create shovel-ready sites for business development. BOS will be recapitalized through underutilized Commonwealth Financing Authority (CFA) programs.
"When a business identifies an opportunity to grow, it needs ready-to-build sites available now, and many times does not have the luxury of waiting two years for a site to be ready," Davin continued. "In the past, Pennsylvania has missed development opportunities because we didn't have an inventory of ready-to-go sites, but we're working to address that by providing patient capital to develop sites for businesses."
It is projected that the recapitalization will create 6,519 jobs and spur $487.2 million in private investment in the commonwealth. Since 2004, projects funded through this initiative have created more than 22,000 jobs and secured $2.2 billion in private investment.
The Business in Our Sites program was initially funded through the issuance of bonds in 2004 with $100 million devoted for grants and $200 million for loans. To date, all grant money for the Business in Our Sites program has been exhausted. All loans issued after the initial disbursement of the $200 million are funded through a revolving loan fund program and are capitalized through loan and interest repayments. The new allocation provides the opportunity to utilize up to one-third for grant funding.
Earlier this month, the CFA approved more than $20 million in loans to support nine BOS projects. For more information on the Business in Our Sites program and additional business assistance programs, visit www.newPA.com.
Heidi Havens, 717-783-1132
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SOURCE Pennsylvania Department of Community & Economic Development