Financial Incentives

SBF - Small Business First can finance a portion of the project, based on the scope and projected employment, at an attractive low interest rate. Eligible industries include hospitality (if in business 5 years although not necessarily under the same ownership), construction, child care centers, manufacturing, research & development, defense conversion, recycling, agricultural, industrial or certain types of computer related enterprises. Applications must be submitted through NEPA to be considered by the Commonwealth.

First Industries is a program offering loans, loan guarantees and on a limited basis grants for construction, renovations or machinery for the agricultural or tourism industries. The project scope and employment projections are integral to the amount and type of funding available through this program. Applications must be submitted through NEPA to be considered by the Commonwealth.

EDA - The US Economic Development Administration offers grants for economic development and infrastructure projects that will be publicly owned and maintained and fall into the community development needs as outlined in the Comprehensive Economic Development Strategy for the NEPA region.

ARC Loan – For profit businesses can apply for low interest financing through this program. The manufacturing and industrial industries are the primary focus of the program. The amount of funding available depends on job creation and the scope of the project. Funds can be used for working capital, site acquisition and construction/renovations, or machinery and equipment.

ARC - The Appalachian Regional Commission provides grants for non-profit or government entities to further the goals of the ARC which exists to increase the economic vitality of Appalachia. Up to 50% of eligible project costs can be obtained. More information can be obtained on the NEPA website at www.nepa-alliance.org/regional/ARC.html.

Microloans are also available in amounts typically under $35,000.

MetroAction is a community development lender offering microloans to businesses that are typically unable to obtain bank financing. Loans can range in size from $250-$75,000. Collateral can be non-traditional.

Building PA is a mezzanine financing tool available locally through Pocono Mountains Industries. Applications must be submitted through PMI in order to be considered by the Commonwealth.

RBEG - Rural Business Enterprise Grants are available to local governmental entities and private non-profits. Smaller projects receive priority and grant awards fall into the range of $10,000 to $500,000. Projects must support small and emerging private businesses.

Community Facility Grants can be used for the development of essential community facilities. Awards can be made for up to 75% of project costs but are also based on local demographics with prioritization to smaller and low-income communities.

B&I – Business and Industry Guaranteed Loans provide tiered guarantees to qualifying loans based on the size of the loan. Generally, loans must be under $10 million. Use of the funds can vary. Rates are negotiated with the lender. Terms are dependent on the use.

REAP – Rural Energy for America Guaranteed Loan Program is designed to stimulate the use of renewable energy by guaranteeing loans for renewable energy or energy efficiency projects. The percentage of the guarantee is tiered based upon the size of the project. Fees, rates and terms are negotiated with the lender.

MELF - The Machinery & Equipment Loan Fund offers low interest financing based on the scope and employment projections for the purchase of machinery and equipment for use in the agricultural, mining, industrial, manufacturing, hospital, information technology, or biotechnology industries.