New local small-business loan program gets $1 million to start

Keith Gushard, The Meadville Tribune, Pa.
·2 min read

Jan. 24—A new local revolving loan program to support small businesses in Crawford County is getting underway.

The Crawford County Board of Commissioners and the Economic Progress Alliance of Crawford County (EPACC) have developed the new program with a pool of $1 million to lend to area small businesses.

The county is using $1 million from its American Rescue Plan Act (ARPA) allocation to establish the loan pool. The loans will be managed and administered by EPACC, which is the county's lead economic development agency.

"The vision of the Crawford County commissioners — all three of them — and the county ARPA Committee see the value in dedicating these funds that will ultimately help businesses well into the future is just dynamic," Jim Becker, executive director of EPACC, said Monday.

The EPACC is readying to accept applications Feb. 1, Becker said, noting businesses may contact EPACC now for general information on the Crawford County Small Business Loan Program.

As loans are repaid, the money will go back into the loan pool to be re-lent to other firms, expanding the lending pool over time.

"The benefits of a revolving loan program such as this will be evident in Crawford County for years to come," Commissioner John Christopher Soff said in a statement. "We are proud to partner with the Economic Progress Alliance to help bolster their ongoing commitment to economic development and growth."

"It's meant to support small business in Crawford County. It's border to border," Becker said.

The general parameters are loans to for-profit businesses with 150 full-time employees or fewer. Loans will be available for up to $100,000 or 50 percent of the project cost, whichever is less, according to Becker.

"These loans can be for start-up costs to working capital, to purchase of equipment or inventory, construction or renovation, tech upgrades and more," he said. "Businesses will have to demonstrate an ability to repay the loan. We want to help out businesses for decades to come."

The loans are to prioritize job creation and retention, Becker added.

Loans for land or buildings are for up to 10 years; machinery and equipment, up to five years; and working capital, up to three years with no penalty for early repayment of a loan.

Interest rates will be competitive with bank rates, Becker said.

—More information about the program: Contact the EPACC at (814) 333-2299 or info@epacc.net.

Keith Gushard can be reached at (814) 724-6370 or by email at kgushard@meadvilletribune.com.