Pennsylvania Minority Business

Development Authority  (PMBDA)

Low interest financing to businesses owned and operated by ethnic minorities

Must be ethnic minorities, as defined under the program guidelines, who have 51% ownership and are current residents of the Commonwealth of Pennsylvania. Eligible businesses are retail, service, manufacturing, industrial, advanced technology and franchise restaurants.

Working capital, purchasing and installing machinery and equipment, building renovation, and acquisition of land and/or building.

• funding up to 75% of the eligible costs with 25% participation by the borrower

• minimum amount of a loan is $25,000

• maximum amount of a loan is $250,000. Maximum can be up to $750,000 if the project is in an Enterprise Zone or is an industrial, manufacturing or advanced technology enterprise, franchise, international trade or business acquisition

• restaurants are eligible if they are a franchise

• bars and taverns are ineligible

One full-time job or equivalent must be created or retained for every $15,000 loaned

• interest rate on loans is not to exceed 1/2 of the prevailing prime rate or no less than 4%, on the date of Board approval
• typical terms are:  real estate - 10 years;  machinery and equipment - 7 years;  working capital - 3 years

Such collateral, as prudent lending practices dictate, will be required and may include, but is not limited to: real estate; accounts receivable; inventory; equipment; and personal guarantees.

Commitment fee of 1% of the loan amount due when the commitment letter is accepted by the Department of Community and Economic Development (DCED).

Please contact Larry Morgan for full details and assistance.