DCED Announces New Low-Interest Loans Approved by Pennsylvania Industrial Development Authority

03 Feb, 2016, 12:22 ET from Pennsylvania Department of Community & Economic Development

HARRISBURG, Pa., Feb. 3, 2016 /PRNewswire-USNewswire/ -- Department of Community and Economic Development Secretary Dennis Davin today announced that new state investments through the Pennsylvania Industrial Development Authority (PIDA) program will support the continued growth of Pennsylvania businesses that are projected to create and retain jobs and support private sector growth. 

Over the last month, PIDA approved more than $3.7 million in low-interest loans for seven projects in Berks, Cumberland, Franklin, Lancaster, and Perry counties that will generate more than $10.5 million in total investments.

"The loans approved over the last month show that the collaborative efforts of the public and private sectors can render progress and development," said Davin. "This momentum along with the competitive rates still being offered through PIDA will continue to develop the climate necessary for businesses to succeed all over Pennsylvania."

In 2016, PIDA approved $6.9 million in low-interest loans that resulted in $12.3 million in private investment and supported 237 created and retained jobs.

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.

PIDA is continuing to offer extremely competitive interest rates due to recent market changes. Qualified applicants are eligible to select either a reset rate of 2.75 percent for the first seven years or a fixed rate of 3.75 percent for real estate financing, 3.75 percent fixed rate for equipment loans, 3.75 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 March 31, 2016.

The following PIDA loans were approved over the last month:

Berks County
The Greater Berks Development Fund was awarded a $232,500, 15-year loan at 2.5 percent for the first seven years, on behalf of Bradley and Olyvia Swinsinski to acquire a 44-acre farm in Upper Bern Township for a crop operation specializing in soybeans, corn, and hay. Total project cost is projected to be $490,000.

The Greater Berks Development Fund was awarded a $200,000, 15-year loan at 2.5 percent for the first seven years, on behalf of Troy and Lynette Gelsinger to construct two broiler houses on their 154-acre farm in Heidelberg Township. The Gelsingers have entered into a contract with Farmers Pride to produce poultry. Total project cost is projected to be $1,015,000.

The Greater Berks Development Fund was awarded a $400,000, 15-year loan at 2.5 percent for the first seven years, on behalf of Adam and Lois Martin to construct three 31,500-square-foot poultry houses on their 88-acre farm in Bethel Township. This will allow the Martins to convert their operation from egg laying to broiler production. Total project cost is projected to be $1,500,000.

Cumberland County
The Cumberland Area Economic Development Corporation was awarded a $100,000, 8-year loan at a 2 percent fixed rate, on behalf of Classic Drycleaners and Laundromats to assist with the purchase and installation of 32 high-efficiency top-loading washers and five high-efficiency shirt washers to be installed in three locations, including East Pennsboro Township, Mechanicsburg Borough, and Carlisle Borough. Total project cost is projected to be $152,387.

Franklin County
The Franklin County Area Development Corporation was awarded a $2,000,000, 15-year loan at 2.5 percent for the first seven years to acquire over 10-acres of land and construct a 66,000-square-foot building in Peters Township. Total project cost is projected to be $5,540,000.

Lancaster County
The EDC Finance Corporation was awarded a $400,000, 15-year loan at 2.5 percent for the first seven years, on behalf of Creative Packaging Solutions, LLC, for the construction of a 7,200-square-foot commercial building in Lancaster city. The building will include a combination of shop space and office space. Total project cost is projected to be $815,000, and will create seven new jobs while retaining four existing positions.

Perry County
SEDA-Council of Governments was awarded a $400,000, 15-year loan at 2.5 percent for the first seven years, on behalf of Jeremy and Vanita Sensenig to construct two poultry houses on a 127-acre farm in Liverpool Township to fulfill a contract with Hy-Line North America. The poultry houses will raise chicks and Hy-Line will retrieve the pullets so they can lay eggs. Total project cost is projected to be $1,015,400.

For more information about the Pennsylvania Industrial Development Authority, and other DCED initiatives, visit www.newpa.com.

MEDIA CONTACT:
Dan Carrigan, 717-783-1132

 

SOURCE Pennsylvania Department of Community & Economic Development



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