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Business Formation and Retention Revolving Loan Program

May 16, 2014

Project Start : 6/1/2012 Project End : 12/31/2015 Project Number : OP121 Status : Active Phase : Execution Project Cost : $100,000 Department : Police, Public Works Location : United States Project Description On a number of occasions the Redevelopment Authority has discussed the potential benefits of creating a revolving loan program to assist with business formation and retention in State College. Revolving loan programs are frequently found in the tool box used by redevelopment authorities that operate business assistance programs. Communities of all sizes (e.g., Pittsburgh, Hermitage and Lock Haven) across the state operate revolving loan funds for business development activities ranging from brownfield reclamation to sustainable agricultural projects to advanced technology programs to manufacturing facilities to service and retail business development. From the revolving loan programs staff reviewed, it appeared that those tied to manufacturing businesses were the most common. The CDICC and SEDA-COG both operate revolving loan funds that focus mainly on manufacturing, although other types of businesses are eligible. The program would be a partnership of local lending institutions, the State College Redevelopment Authority, and Downtown State College. The SBDC and CDICC would also be involved in the program, lending their expertise as needed. We will particularly benefit from the involvement of these organizations in the area of business plan preparation. In discussions with our potential partners, we have looked at two approaches a loan guarantee approach and/or a gap financing approach. It appears from review of revolving loan programs in other communities, the gap financing approach is more common. In either case, the program would be structured as a matching program where the level of public funding committed to the program would match the level of funding committed by local banks in the partnership. The specific details of the program have not been finalized. However, the following program elements are common in revolving loan programs:

Project completion date : 2015-12-31 12:00:00

Major organization : BOROUGH OF STATE COLLEGE

Address : 243 South Allen Street, State College, PA 16801-4806 United States

Country :United States

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Source: TendersInfo (India)