$9.4 Million in Low-Interest Loans Attracting $14.7 Million More in Private Funds
HARRISBURG, Pa., Dec. 2, 2010 /PRNewswire-USNewswire/ -- Six projects that will create or retain nearly 400 jobs throughout the state were approved for $9.4 million in low-interest loans today by the Pennsylvania Industrial Development Authority, Department of Community and Economic Development Secretary Austin Burke announced.
The projects—located in Allegheny, Berks, Erie, Lebanon, Philadelphia and York counties—account for a more than $24 million infusion into the state's economy, as developers intend to invest an additional $14.7 million in private capital, or one-and-a-half times more than the state's contribution.
"Maintaining a positive and inviting business climate for companies looking to expand remains a top priority in Pennsylvania," said Burke. "In addition to creating more than two dozen new manufacturing jobs statewide, these new investments will help to revitalize a vacant property and encourage businesses to expand."
One of the approved projects is a $2 million, 15-year loan at 2.5 percent to EIDCO Inc., on behalf of Smith Provision Company Inc., to acquire and renovate a building in Erie. The $7 million project will allow the company to transfer its operations and 38 existing employees to the new site and create 20 new jobs within the next three years.
Smith Provision Co., which was founded and incorporated in Pennsylvania in 1927, produces premium quality wieners, sausage, deli meat, bacon and ham.
The PIDA board also approved:
- A $1.8 million, 15-year loan at 3.5 percent to RIDC of Southwestern Pennsylvania to renovate the 33,994-square-foot Findlay Center Building in Findlay Township, Allegheny County. The $6 million project will allow RIDC to market the building as a multi-tenant facility for small and mid-sized users.
- A $1.4 million, 15-year loan at 2.5 percent to Custom Processing Services Inc., a manufacturer specializing in micronizing ultra-fine, particle-sized materials used in chemical powders, waxes, polymers, minerals and pigments. The company will construct a new building in Exeter Township, Berks County. The $2.7 million project, sponsored by the Greater Berks Development Fund, will allow the company to consolidate its operations, expand warehousing space, provide space to add additional milling machines, and retain its 74 existing employees.
- A $1.6 million, 15-year loan at 2.5 percent to Farmer Boy Ag Systems Inc., which manufactures swine, poultry, dairy and equine systems, to construct a new building in Myerstown Borough, Lebanon County. The $3.1 million project will allow the company to streamline operations, increasing production efficiency and lowering operating costs. The company will move its entire operations and 66 existing employees to the new facility. The Lebanon Valley Economic Development Corp. sponsored the project.
- An $880,000, 15-year loan at 2.5 percent to Newman and Company Inc., which manufactures paperboard that is used for board games, rigid boxes and the back of picture frames. The $2.2 million project will allow the 91-year-old company to purchase a 90,000-square-foot building in Philadelphia to house finished inventory and new materials, retain its existing 133 employees, and create an additional three jobs within the next three years. The sponsoring agency is the PIDC Financing Corp.
- A $1.8 million, 15-year loan at 2.5 percent to York County Economic Development Corp. on behalf of L&W Apparel Co. Inc. (doing business as Legacy Athletic). The company, which manufactures custom caps and accessories using embroidery, screen printing, heat transfers and laser engraving, will use the PIDA funds to acquire, renovate and expand an existing building in Penn Township. The $3 million project will allow the company to transfer its operations and 47 employees to the new site, and create four new jobs with the next three years.
PIDA provides capital for infrastructure acquisition, creation and renovation work, primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.
For more information about economic development initiatives in Pennsylvania, call 1-866-466-3972 or visit www.newpa.com.
Media contact: Theresa Elliott, 717-783-1132
SOURCE Pennsylvania Department of Community & Economic Development