RIDGWAY – The North Central Pennsylvania Regional Planning and Development Commission (North Central) hosted a Lender’s Brunch in Kane on June 20 at Six&Kane featuring financial experts who offered tips for navigating regional programs and financial resources that are available to businesses within the six-county region.
Sponsored by North Central, the event featured speakers from the commission’s Business Lending Program, the PennWest Clarion Small Business Development Center, Pursuit and The Progress Fund. The brunch event was catered by Table 105 in Kane.
“We had a tremendous turnout from the financial services industry,” North Central Loan Program Director Jennifer Hibbard said.
“The presentations from PennWest Clarion’s Small Business Development Center, Pursuit, and The Progress Fund, in addition to us at North Central, gave bankers, economic development professionals, and legislative offices a well-rounded understanding of the business assistance as well as complementary and alternative lending resources available to our regional businesses and entrepreneurs.”
Attendees were treated to a wealth of financial information pertaining to the types of loans offered, application processes, interest rates and eligibility requirements for businesses stretching from manufacturing to tourism.
Hibbard highlighted North Central’s 10 revolving loan funds, which are not designed to replace traditional bank lending but are used as a supplemental source of financing to enhance the overall credit package in participation with bank financing.
The commission serves for-profit, start-up, and existing businesses in Cameron, Clearfield, Elk, Jefferson, McKean and Potter counties.
The mission of loan funding is to strengthen the economy by supporting business start-ups and expansions with low-interest financing, but cannot be used for loan refinancing, supplanting bank financing, housing, speculation of real estate or personal property or if there is no job creation or retention.
The Revolving Loan Fund, with approval of the loan committee and North Central’s Board of Directors, can be used for up to 50 percent of a project cost or $400,000, whichever is lower, provided it will create one full-time job per $75,000 borrowed.
Loans carry a 4-percent interest rate and can be used for purchasing real estate, machinery and equipment, and working capital.
The commission, who is a Local Development District, is a state-certified Economic Development Organization, can also work with borrowers to secure funding through the Pennsylvania Industrial Development Authority (PIDA), a state lending program. Funding can be used for industrial parks, multi-tenant facilities and other business development needs.
PIDA loans feature interest rates between 4.5 and 5.5 percent and must also create one full-time job per $75,000 borrowed. Funds can be used for real estate, machinery and equipment and working capital.
Aleshia Marshall, who serves as a business consultant with the PennWest Clarion Small Business Development Center (SBDC), discussed how the educational institution works with start-up businesses through seminars and webinars, business and financial planning, and consulting.
Marshall said PennWest Clarion SBDC will also assist new businesses with market and industry research, strategic planning, financial analysis and marketing.
Steve Meredith, who serves as assistant vice president and senior development officer with Pursuit, a Community Development Financial Institution and Community Development Corp., discussed the financial organization’s several lending programs designed to help businesses thrive.
He said the company works with businesses for working capital loans, equipment purchases, technology upgrades and business debt refinancing.
Pursuit offers loans up to $500,000 with a 7.75-percent interest rate with a six- to 10-year term, provided the business is at a break-even point or has positive cash flow, in addition to no bankruptcies on the owner or business and no tax liens or judgments for the previous three years.
Janet Schopp, who serves as small business lender for non-profit The Progress Fund, a Community Development Financial Institution, discussed how her organization has worked primarily in the outdoors and tourism industry.
She said her organization works with small businesses, many of which are in the six-county region, to help them get answers to solid and lasting economic improvement to create jobs within the region.
The Progress Fund has worked with microbreweries, bed and breakfasts, campgrounds, specialty retailers, outdoors outfitters, guide services and wineries.
A Banker’s Breakfast, the second installment of the information sessions, will be held Aug. 13 in DuBois.