First Industries Fund
 
Purpose

Grant and loan program aimed at strengthening Pennsylvania's agriculture and tourism industries
 
Eligible Projects

Large scale projects that demonstrate regional impact, deploy new or innovative technologies, or demonstrate significant job creation
 
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
  • Commonwealth funded loans:  5%
  • EDA Defense related loans:  4%, or 4% below prime, whichever is higher
  • Real Estate term:  up to 15 years
  • Machinery and equipment term:  up to 10 years
  • Working capital term:  up to 3 years
  • Interest rates:  annual fixed rate of 5% for loans to agricultural producers. Rates may be reduced 2% under certain circumstances if the area where the project is located has been included within a natural disaster declaration issued by the Governor
  • Where two or more uses of SBF funds are planned, loan terms may be blended
Fees
  • $500 packaging fee due to Economic Progress Alliance
  • $550 application fee due to the Northwest Commission
Collateral

  • Loans must be secured at the highest lien position available on one or more assets

  •  SBF may require personal guarantees of principals
Application Process

Please contact Larry Morgan for full details and assistance.