Friday, March 27, 2009
The loan program aims to stimulate the creation of well-paying jobs.
STAFF REPORT
HERMITAGE, Pa. — Business owners who want to expand but aren’t sure they can get a bank loan in the current credit market don’t necessarily have to shelve their plans.
Don’t forget about us, say the Shenango Valley Enterprise Zone and Penn-Northwest Development Corp.
The two development groups’ Joint Funding Program has $2.4 million available right now for businesses located in the zone, which includes industrial corridors in Sharon, Hermitage, Wheatland, Sharpsville, West Middlesex and Greenville; all of the city of Farrell; and areas in Pymatuning, South Pymatuning, Hempfield, Shenango and Delaware townships.
The groups’ mission, officials of both said Thursday, is to help businesses create well-paying jobs. Low-interest loans are available up to $500,000.
The two groups joined forces in 2007, they added, to streamline the application process and make it less expensive for business owners than applying to two separate entities.
“We hear frequently that it takes too long to get through the process,” said Larry D. Reichard, executive director of Penn-Northwest. “But an application for a half-million-dollar project can be processed in 35 to 45 days.”
The SVEZ is the lead agency and takes the applications. Penn-Northwest, meanwhile, buys half the loans.
The revolving-loan fund, which began with seed money from the state, has 31 active accounts right now.
Brent Ward, owner of Integrated Fab in Sharpsville, said he used the loan program to grow after he bought the assets of a small fabricating shop in 2000.
His company produces electrical components for the power grid.
Ward said his company has grown from 12 to 45 employees, has added new manufacturing space and has $6.5 million in annual sales, up from less than $1 million when it started.
“We’re on a 15 percent growth rate, while the economy is going the other direction,” he said. “This works. It really does.”
Eligible loan applicants can be from the manufacturing, industrial, warehousing, distribution, business-to-business and technology sectors.
The loans can be used for land acquisition, preparation and associated expenses; building acquisitions; renovation and additions; machinery and equipment; and soft costs such as engineering and legal fees.
James M. Cardamon is the loan program’s coordinator. Prospective applicants can contact him at (724) 342-1300 for more information.
Maps of the enterprize zone are also available at www.svezc.com.