Corbett Announces Reduction of DCED Loan Program Interest Rates to Spark Business Expansion; Advance Make it in PA
HARRISBURG – Continuing to advance his JOBS1st PA initiative, Gov. Tom Corbett has announced that he has directed the Department of Community and Economic Development to reduce the interest rates of three business loan programs to encourage small business and manufacturing growth and new job creation.
“Small businesses and manufacturers continue to be the driver of Pennsylvania’s economic engine,” said Corbett. “Access to affordable capital spurs new growth and is critical to ensuring Pennsylvania’s economy is built to advance. By reducing interest rates and the cost of borrowing, we are encouraging new growth through providing critical access to capital and freeing up operating cash to support new job creation.”
Beginning Feb. 1, the DCED will lower interest rates for the Machinery & Equipment Loan Fund, Pollution Prevention Assistance Program, Export Financing Program and Small Business First to 1.75 percent for applications received prior to July 1. DCED will also waive its fees charged to the borrowers.
At its Feb. 5 board meeting, the Pennsylvania Industrial Development Authority (PIDA) also reduced its interest rates from four percent to 2.25 percent for applications received through July 1. PIDA also waived its fees charged to borrowers.
The reinstatement of the interest rate reduction initiative follows a successful initiative a year ago.
From December of 2012 through June 30, 2013, DCED received more than 150 applications, more than double received the entire year prior totaling more than $106 million in loans approved. Leveraging more than $153 million in additional private investment, the approved projects are expected to create 3,028 jobs and retain 17,794 positions.
In 2012, Corbett launched JOBS1st PA as a comprehensive roadmap to economic recovery that harnessed the state’s resources and talents to prioritize private-sector job creation and retention. Today, Pennsylvania’s unemployment rate stands at a five-year low and jobs have been growing on a consistent basis for nearly four years.
For more information about Corbett’s JOBS1st PA initiative, please visit www.pa.gov.