HARRISBURG – Department of Community and Economic Development (DCED) Secretary C. Alan Walker announced the allocation of $29.2 million of funding from the U.S. Department of the Treasury’s State Small Business Credit Initiative (SSBCI) to economic, community and technology development partners throughoutPennsylvania.
“The Corbett administration is committed to supporting our small businesses, and the best way to do that is by partnering with the private sector to maximize resources,” said Walker. “I am proud to say that Pennsylvania is the only state in the nation that requested proposals from our local partners with a goal of maximizing investment and supporting the best projects. This initiative will result in significant small-business job creation across the state.”
After receiving notification from the Treasury of the SSBCI program, DCED reached out to its development partners throughout the state to determine what funding gaps currently existed for small businesses. As a result, the department determined that the best approach was to give the organizations, which interact with small businesses every day, the opportunity to apply for a portion of the funding. By partnering with the private sector to support local projects –rather than using the entire funding to supplement existing state programs – the impact of job creation and private investment in the state will be much greater.
The SSBCI program is part of the Small Business Jobs Act that was signed into law in September 2010. Funding will be allocated to 12 entities to support statewide and regional job generating programs, early-stage technology companies and Community Development Financial Institutions.
Walker was joined today by Sen. John Gordner and representatives of the organizations that will receive the SSBCI funding.
“Small businesses are an integral part of Pennsylvania’s economy, accounting for over 98 percent of the state’s employers and nearly 50 percent of its private-sector employment,” said Gordner. “I applaud DCED for taking a business-minded approach and reaching out to address and enhance small business’ capital needs.”
For more information about economic development initiatives in Pennsylvania, call 1-866-466-3972 or visit www.newpa.com.
Editor’s Note: The allocation of SSBCI Funds is as follows:
Altoona-Blair County Development Corporation (ABCD Corp) is a DCED-certified economic development corporation, serving 19 counties. The organization will use the funding to create the “Innovate PA fund” – a program designed to provide low-interest loans to meet the financing needs of small businesses that are presently not being met by public and private lenders. ABCD Corp. will receive $2 million of SSBCI funding, projected to finance a minimum of 12 loans and create at least 80 jobs.
Ben Franklin Technology Development Partners (BFTDP) and the Life Science Greenhouses (LSG) are non-profit economic development intermediaries created by the state to accelerate innovation, economic growth and jobs in the state’s high technology economy. The BFTDP and LSG programs will receive $5 million of SSBCI funding, projected to finance 17 early-stagePennsylvania technology companies, create 163 high-paying jobs and attract over $50 million of private financing.
Bridgeway Capital is a DCED Community Development Financial Institution that serves businesses and nonprofits in Western Pennsylvania. The organization will receive $2 million in SSBCI funding to continue making entrepreneur and growth capital loans, and loans to nonprofits. The funding is projected to finance 510 loans, create nearly 2,600 jobs and attract over $97 million in private financing.
Central Bradford Progress Authority (CBPA) is a DCED-certified area loan organization covering the counties of Bradford,Susquehanna, Sullivan and Wyoming. The organization will utilize its 18 years of economic development lending experience to provide capital to small business in their region and those specifically tied to Marcellus Shale. CBPA will receive $1 million of SSBCI funding, projected to finance 10 loans and create 150 jobs.
Community First Fund is a DCED-certified Community Development Financial Institution that serves 13 counties in central and eastern Pennsylvania. Community First will receive $2 million in SSBCI funding to provide loans to underserved small businesses with impaired access to credit during the current recession. The funding will be used to create an additional $19 million in private economic investments, and is projected to finance 246 loans and create 1,850 jobs.
The Economic Opportunities Fund (EOF) of the Women’s Opportunity Resource Center is a Community Development Financial Institution that serves the five-county Philadelphia region. The organization will utilize its 12 years of economic development experience to continue providing low-income women and minorities with startup capital. EOF will receive $262,500 in SSBCI funding, projected to finance 39 loans and create 26 jobs.
Northside Community Development Fund (NCDF) is a DCED-certified Community Development Financial Institution that provides financing for small business and real estate projects on Pittsburgh’s Northside. The funding will be used to make loans to underserved, low-income census neighborhoods. NCDF will receive $250,000 in SSBCI funding, projected to finance five loans, and create 13 jobs.
Pennsylvania Industrial Development Corporation (PIDC) is private nonprofit corporation with a 53-year history of stimulating economic development by leveraging financing and real estate resources that attract, retain and grow businesses in Philadelphia. PIDC will receive $2 million of SSBCI funding, projected to support a minimum of four projects and create at least 40 jobs.
The Progress Fund is a DCED-certified Community Development Financial Institution serving 39 counties in Western andNorthern Pennsylvania. The organization will receive $2 million of SSBCI funding to continue providing capital for rural, tourism-related projects. The funding is projected to finance 40 loans, and create 500 jobs.
The South Eastern Economic Development Corporation (SeedcoPA) is a DCED-certified economic development corporation serving Chester County. The organization will serve as the Credit Support Program for the SSBCI-funded and approved Pennsylvania Regional Revolving Loan Fund (PRRLF). The PRRLF will include many of the Southeastern Pennsylvania economic development councils and local and regional banks. These entities will contribute capital to the PRRLF, which will be used as a source of funds for the loans. SeedcoPA will receive $2 million of SSBCI funding, projected to support a minimum of 40 projects and create at least 186 jobs.
SEDA-COG is a DCED-certified economic development corporation serving 11 counties in central Pennsylvania. The organization will use the funding to provide small businesses loans to for-profit companies involved in promoting technology and communications, and businesses involved in Marcellus and Utica Shale activities. SEDA-COG will receive $1 million of SSBCI funding, projected to support 10 loans and create at least 420 new jobs.
The Pennsylvania Machinery and Equipment Loan Fund (MELF) is administered by DCED and designed to attract economic growth by providing low-interest loan financing for a portion of the cost of machinery and equipment purchases. To be eligible for MELF, businesses must commit to creating or retaining jobs. MELF will receive $9 million of SSBCI funding, projected to support a minimum of 13 projects and create at least 828 jobs.