First Industries Fund - Agriculture
 
Purpose

grants, loans and loan guarantees to non-profit organizations and for-profit business enterprises to undertake projects relating to the promotion and development of agriculture within Pennsylvania
 
Eligible Projects

  • production agriculture, which is the production of farm commodities or farming

  • agribusiness

  • sale of farm commodities at wholesale

  • sale of farm commodities at retail by urban and rural supermarkets located in underserved areas

  • farmers' markets

  • energy-related activities impacting production agriculture or agribusiness

  • activities which implement best management practices related to agricultural waste, waste products and byproducts, or fertilizer
Eligible Uses of Funds

  • land and building acquisition and construction

  • machinery and equipment purchase and upgrades

  • retail and commercial

  • starting a business

  • working capital
Limitations

  • loans up to $200,000 or 50% of total eligible project costs, whichever is less

  • maximum amount for working capital is $100,000 or 50% of total eligible project costs, whichever is less

  • planning grant up to $250,000
Conditions

All loan applications must be approved by a designated Area Loan Organization
 
Rates and Terms
  • Annual fixed rate of 5%; may be reduced to 2% under certain circumstances if the project area is included within a natural disaster declaration issued by the Governor
  • Real Estate term:  up to 15 years
  • Machinery and equipment term:  up to 10 years
  • Working capital term:  up to 3 years
  • Loan may be repaid at anytime without financial penalty
Fees

Established by the Area Loan Organizations.
 
Collateral

  • Loans must be secured at the highest lien position available on one or more of the following assets: land, buildings, machinery, equipment, accounts receivable and inventory

  • SBF may require personal guarantees or corporate guarantees or other types of collateral as circumstances allow

  • SBF must have a collateral lien position on the assets being funded unless specifically waived and have a loan to value ratio of 90% or lower on similar licensed assets
Application Process

Please contact Larry Morgan for full details and assistance.