Business Loan Rates Reduced by State

I just got this press release from Virginia. As you may know, Pennsylvania is very much involved with community and economic development efforts around the state. In an effort to keep Pennsylvania competititve in the current economic climate, the Commonwealth has reduced business loans through three of their business loan programs: The Pennsylvania Industrial Development Authority, Machinery and Equipment Loan Fund and Small Business First loan program.

See the press release below for more info.
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Governor Rendell Says Interest Rates on Business Loan Programs Reduced; Change Will Keep PA’s Business Climate Competitive
Industrial Development Authority Cuts Rates to Two Points Below Prime

HARRISBURG – Continuing efforts to stave off the effects of the national economic downturn, Governor Edward G. Rendell announced that the Commonwealth has reduced interest rates on three of its key business loan programs to position Pennsylvania for continued economic growth.

“Pennsylvania is feeling the effects of recent events on Wall Street and a stagnant national economy,” said Governor Rendell. “While Pennsylvania is well-positioned to deal with this situation, we must continue to be proactive and provide incentives for businesses to invest, grow and create jobs.”

The Governor said the Pennsylvania Industrial Development Authority voted today to reduce the interest rate on its loans to 3 percent for all future projects. The commonwealth will also set interest rates to 3 percent for projects approved through the Machinery and Equipment Loan Fund and Small Business First loan programs.

Today’s cuts continue the practice of holding rates on these commonwealth loan programs to two points below prime.

The Pennsylvania Industrial Development Authority provides capital for infrastructure acquisition, creation and renovation projects primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.

“While we have fared better than many other states up to this point, recent declines in jobs and revenues flowing into the state show that we cannot stand by and wait for Washington to act,” said the Governor. “Now is the time to invest in our businesses and workers by providing the resources they need to weather this economic downturn.”

Governor Rendell also announced the PIDA board approved the first two loans with the reduced rate that will create more than 45 jobs and leverage more than $3.6 million in private commitments:

Clearfield County

Paris Cleaners Inc. will receive a $2.1 million PIDA loan to construct a new, state-of-the art automated laundry facility adjacent to its existing plant in the Dubois Industrial Park. The $5.3 million project is expected to create 40 jobs. The Clearfield County Economic Development Corp. is the sponsoring economic development agency.

Philadelphia County

The Forman Sign Co. will receive an $850,000 PIDA loan to acquire and renovate an existing building at Red Lion South Industrial Park in Philadelphia. The $1.9 million project is expected to create eight jobs. The PIDC Financing Corp. is the sponsoring agency.

Since 2003, PIDA has funded more than 400 projects with more than $385 million in loans, creating more than 9,500 new jobs and retaining more than 35,000 existing positions.

For information on any of the above programs and others administered through the Department of Community and Economic Development, visit www.NewPA.com or call 1-866-466-3972.

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The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: www.governor.state.pa.us.