HARRISBURG, Pa., Dec. 2, 2015 /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 small businesses that are projected to create and retain jobs and support private sector growth.
At the December meeting, PIDA approved $1.4 million in low-interest loans for four projects in Bedford, Berks, and Monroe counties generating more than $5.8 million in total investments.
"The loans approved today will provide small business support in two of Pennsylvania's top industries – tourism and agriculture," said Davin. "It is critical that we continue to provide capital to our small businesses. Through investing in our small businesses we are investing in our local communities and health and vitality of the commonwealth."
In 2015, PIDA has approved $54.9 million in low-interest loans that have resulted in $125.8 million in private investment and supported 2,570 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 2.50 percent for the first seven years or a fixed rate of 3.50 percent for real estate financing, 3.50 percent fixed rate for equipment loans, 3.50 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 Dec. 31, 2015.
The PIDA board approved the following loans at its December meeting:
The Southern Alleghenies Planning & Development Commission was awarded a $400,000, 15-year loan at 2.5 percent fixed rate for the first seven years, on behalf of Norman and Melissa Martin to acquire a 144-acre farm parcel in South Woodbury Township where the Martins have been operating their dairy herd since April 2011. Total project cost is projected to be $800,000.
The Greater Berks Development Fund was awarded a $200,000, 15-year loan at 2.5 percent fixed rate for the first seven years, on behalf of John and Verna Burkholder for the acquisition of a 119-acre farm in Richmond Township. The Burkholder's current operations consist of dairy farming, livestock sales, fertilizer, and produce stand sales. Total project cost for the expansion is projected to be $1,300,000.
The Greater Berks Development Fund was awarded a $400,000, 15-year loan at 2.5 percent fixed rate for the first seven years, on behalf of David and Sara Homm for the construction of two modern broiler houses to be added to the current farm. The Homm's have secured a contract with Farmers Pride for the management of the chickens and maintenance of the poultry houses. Total projected cost for the expansion is projected to be $1,007,000.
Pocono Mountains Industries, Inc. was awarded a $400,000, 15-year loan at 2.5 percent fixed rate for the first seven years, on behalf of Bhavi Corp. to renovate the Penn Stroud Hotel, an 88-room, 74,070-square-foot hotel in Stroudsburg. Built in the 1800s, the Penn Stroud Hotel's transformation will include structural renovations and repairs, mechanical system upgrades and replacements, new fixtures, new furniture, and new equipment. Located in the heart of the downtown, the transformation of the oldest operating hotel in the Poconos will serve as a component of revitalization for the area. Total project cost is projected to be $2,694,934 and will create 14 new jobs and will retain 12 existing positions.
For more information about the Pennsylvania Industrial Development Authority, visit www.newpa.com.
Lyndsay Kensinger, DCED, 717-783-1132
SOURCE Pennsylvania Department of Community & Economic Development