Financing

Program Summary
BLOOM small business loans aim to be a source of capital for start-up or currently operating businesses in York County who may not have enough business credit history or access to traditional sources of capital.

Uses and Purposes of Funding
These small business loans can cover aspects of a startup or existing business including but not limited to:

• Working Capital
• Business Real Estate Acquisition (no residential real estate)
• Inventory/Supplies
• Equipment Needs
• Payroll
• Construction and Renovations

Amounts
Starting at $2,000 and above.

Terms
Rates and terms change quarterly. Please view updated loan terms on www.bloomyork.org.

This forgivable loan program, in partnership with Every Child Has Opportunities (ECHO) and Community Connections for Children, will support new childhood education providers in York County, PA through recruitment, education, and funding support.

Uses and Purposes of Funding
These small business loans can cover aspects of a startup or existing business including but not limited to:

• Exterior facade or interior renovations
• Curb appeal/placemaking enhancements
• Lighting improvements; safety upgrades both interior and exterior
• Funds for business registrations, zoning costs, marketing, provider equipment
• needs, toys, books, physical costs, and/or clearances.
• Repairs, maintenance or fencing exclusively related to the use of the Early Childcare Education provider business.
• Space expansions/renovations
• Expenses related to marketing or advertising

Amounts

• Home based applicants – can request up to $20,000.
• Center based applicants – can request up to $40,000.

Loan Application
Currently closed. Will open again in October, please check www.bloomyork.org for updates.

Program Summary
Job Creation Tax Credits is a $1,000 per-job tax credit to create new jobs in Pennsylvania within three years

Eligible Businesses
Approved businesses that agree to create jobs within three years; 25% of the tax credits allocated each year must go to businesses with less than 100 employees

Uses and Purposes of Funding
Tax credits used to offset various business tax liabilities.

Amounts
$1,000 per-job tax credit.

Terms

• Tax credits may not be utilized by a business until the jobs are actually created

Job Creation and Retention

• Must create at least 25 new jobs or expand the existing workforce by at least 20%

Program Summary
LERTA was established to allow local taxing authorities to exempt improvements to a business property if such property is located in a deteriorated area. LERTA FAQ

Participants
Any city, county, borough, incorporated town, township, institutional district or school district having the authority to levy real property taxes can participate.

Applicants
Eligible persons can apply for a tax exemption using the local tax authority’s exemption request form.
Applicant Flow Chart

Uses and Purposes of Funding
Property improvements eligible for exemption include:

• Repairs
• Construction or reconstruction, including alterations and additions
• Rehabilitating a deteriorated property to make it habitable or to attain a higher standard of safety
• Improvements required to alleviate health concerns
• Economic use or amenity
• Improvements necessary to comply with laws, ordinances or regulations governing such standards

Amounts
The local tax authority may provide for an exemption on the assessment attributable to the actual cost of the improvements or up to any maximum cost uniformly established by the municipal governing body. Such maximum costs shall uniformly apply to all eligible deteriorated property within the local taxing authority jurisdiction.

Terms
The local tax authority shall establish an exemption schedule not to exceed 10 years and shall specify the portion of improvements to be exempted each year. Savings will be realized on a sliding scale beginning with 100% in year one and decreasing 10% annually until the tenth year.

Program Summary

• Provides federal tax-exempt mortgage financing to reduce a farmer’s interest rate for capital purchases
• Administered through the York County Industrial Development Authority (YCIDA)

Eligibility Requirements

• Permanent Pennsylvania resident
• Must be 18 years or older to apply
• Able to meet lender’s credit standards
• Access to adequate working capital, farm equipment, etc.
• Borrower must not have had any prior ownership of a substantial portion of land
• Borrower must be the sole owner and principal user of the project
• Subject to Federal borrower (sole proprietor & partnership) net worth maximums

Uses and Purposes of Funding

• Agricultural land
• Agricultural improvements (not to exceed$250,000)
• Depreciable property
• Purchase from related persons
• No portion of the loan proceeds may be used for the purchase of a residence

Amounts

• Up to $667,000 (2025 max); however, the total loan proceeds allocated to the purchase price of used equipment may not exceed Federally determined annual maximums

Interest Rate & Terms

• Determined by the lender.

Fees

• $500 non-refundable application fee (applied to the closing fee)
• Closing fee of 50 basis points of the loan amount YCIDA and bond counsel legal fees, based on actual cost (est. $500 & $2,500 respectively)
• Annual audit fee, which is based on annual cost (currently $80)
• Loan/Bond Amendment Fee for actions subsequent to closing the financing

Program Summary

Pennsylvania’s State Small Business Credit Initiative (SSBCI) was established under the American Rescue Plan Act of 2021 (ARPA) in response to the economic effects of the COVID-19 pandemic as a means to help small businesses gain access to capital.

The SSBCI program is administered at the federal level by the U.S. Department of the Treasury, however, at the local level, PA Department of Community and Economic Development (DCED) has contracted with economic development partners from across the state to implement and administer the $246.8 million in funding via a variety of loan and equity programs.

Uses and Purposes of Funding
These small business loans can cover aspects of a startup or existing business including but not limited to:

• • Working Capital
  • Business Real Estate Acquisition (no residential real estate)
  • Inventory/Supplies
  • Equipment Needs
  • Payroll
  • Construction and Renovations

Amounts
Starting at $2,000 and above.

Terms
Rates and terms change quarterly. Please view updated loan terms on www.bloomyork.org or www.yceapa.org.

Program Summary

• Low interest loan financing for land and building acquisition, construction and renovation projects that result in the creation or retention of jobs
• Available to any size small business
• Administered through the York County Economic Development Corporation (YCEDC), York County’s Certified Economic Development Organization (CEDO)

Eligible Businesses

• Manufacturing
• Industrial
• Agricultural processing
• Research and development
• Computer/clerical operation centers
• Firms establishing a national or regional headquarters
• Keystone Innovation Zone (KIZ) companies

Uses and Purposes of Funding

• Land and building acquisition
• Building construction and renovation
• Industrial park development
• Multi-tenant spec building construction, acquisition and renovation

Amounts

• Loans up to $2 million or 50% of the total eligible project costs, whichever is less
• Loans up to $2.25 million or 50% of the total eligible project costs, whichever is less for projects located within Enterprise Zones, Act 147 Industrial Communities, Federal Empowerment Zones, Federal Enterprise Communities, Brownfield Sites, Keystone Opportunity Zones and Keystone Opportunity Expansion Zones

Interest Rate
Based on current market conditions (set by DCED quarterly).

Terms

• Up to a 15-year term for land and building
• May not exceed the term of any matching lending source with a mortgage prior to or shared with the PIDA mortgage

Job Creation and Retention

• Create, and, or, retain one full-time job for every $75,000 borrowed
• Multi-tenant building projects are not subject to job creation and retention

Fees

• $1,500 non-refundable YCEDC Application Fee (applied to YCEDC Commitment Fee)
• 1.5% YCEDC Commitment Fee
• YCEDC legal fees
• PIDA/DCED Commitment Fee – 1% of the PIDA Loan amount (loans > $400,000)
• Loan Amendement fee for actions subsequent to closing the financing

Program Summary
Low Interest loans available to small businesses (100 employees or fewer). Administered through the York County Economic Development Company (YCEDC), York County’s Certified Economic Development Organization (CEDO).

Eligible Businesses
Must be in one of the following: Manufacturing, Industrial, Construction enterprises, Agricultural producers, Child-daycare centers, Technology-oriented and computer-related services, Hotels, motels or restaurants (established non-startups), Environmental compliance/pollution prevention, Municipal or commercial recyclers, Export-related, Military and defense-related, Mining, or Service enterprises (located in distressed communities).

Uses and Purposes of Funding

• Land and building acquisition and construction
• Machinery and equipment purchases, maintenance, upgrades and repairs
• Working capital and accounts receivable lines of credit
• Environmental compliance/pollution prevention

Amounts

• Maximum loan amount is $400,000 or 50% of total eligible project costs, whichever is less
• Maximum loan amount for service enterprises is $200,000 or 50% of total eligible projects costs, whichever is less
• Maximum loan amount for pollution prevention and energy efficiency projects is $100,000 or 75% of total eligible project costs, whichever is less
• Maximum line of credit amount is $100,000 (50% match is required for service enterprises)

Interest Rate
Based on current market conditions (set by DCED quarterly)

Terms

• Up to a 15-year term for land and building
• Up to a 10-year term for machinery & equipment
• Up to a 1-year term for working capital and accounts receivable lines of credit, which can be renewed annually up to a maximum of six (6) years
• Up to a 10-year term for pollution prevention and energy efficient projects

Job Creation and Retention

• Create one full-time job for every $75,000 borrowed, or retain one full-time job for every $75,000 borrowed
• Agricultural producers and pollution prevention projects are not subject to job creation and retention requirements

Fees

• $1,500 non-refundable YCEDC Application Fee (Applied to YCEDC Commitment Fee)
• 1.5% YCEDC Commitment Fee (net minimum $2,500)
• YCEDC legal fees
• Loan Amendment Fee for actions subsequent to closing the financing

Program Summary

Eligibility Requirements

• RACP projects are state-funded projects that cannot obtain primary funding under other state programs. Projects that can normally obtain funding from PENNDOT, PENNVEST, the Department of Community and Economic Development, or other state agencies are generally restricted from participating in the RACP program
• All RACP grants awarded MUST be for projects included in one or more of the PA Capital Budget Project Itemization Acts passed by the General Assembly and signed into law by the Governor. • RACP grants must be eligible for tax-exempt bond funding under existing federal law requirements. The Applicant must demonstrate and document that the project qualifies for financing with federally tax-exempt bonds. Applicants will be required to comply with procedures to maintain the tax-exempt status of bonds issued to finance the project.
• A RACP project must have matching funds that comply with the following:

► At least 50% of the project cost must be match (non-state) participation.

► At least 50% of the non-state participation must be secured funding at the time of the Application & Business Plan submittal with identifiable and firm commitments from all sources.

► Sources of matching funds must be documented at the time of the Application & Business Plan submittal with identifiable and firm commitments from all sources.

► Sources of match funds can be local, private, land or building as-is appraised value, and/or federal funds.

► The only non-cash, non-state match permitted are land or fixed assets, which have a substantial useful life and are directly related to the project.

► If financing/loans are used in match funding they typically must consist of permanent financing (i.e., a minimum term of 20 years). This policy does not apply to bridge or interim financing used in the project.

Fees

Program Summary

The SBA 504 program provides growing small businesses with long-term, fixed-rate low equity

financing for major fixed assets such as land, buildings and equipment. Loans are available to

most for-profit businesses for qualified projects that result in the creation or retention of jobs.

Eligible Businesses

Sole proprietorships or small businesses (tangible net worth <$20 million and 2-year average net

income <$6.5 million) including:

• Most for-profit, small businesses (500 employees or fewer)
• Agriculture production

Uses and Purposes of Funding

• Land and building acquisition
• Building construction, expansion and renovation
• Purchasing/upgrading long-term machinery and equipment

Interest Rate
Market interest rate (average rates based on 5 and 10-year Treasury notes plus a fixed rate spread).

Loan Structure

• A commercial bank will provide senior financing for 50% of project costs
• YCEA, in partnership with EDC Finance Corporation, will provide an SBA 504 loan in a subordinate position for up to 40% of project costs
• Borrower will provide a minimum 10% equity injection into the project

Amounts

• Loans up to $5,000,000 or 40% of total eligible project costs, whichever is less
• Loans up to $5,500,000 or 40% of total eligible project costs, whichever is less for manufacturers
• and certain energy efficient projects

 

Terms

•  20 or 25-year fixed rate term for real estate
• 10-year fixed rate term for machinery and equipment
• 10% equity required for non-start up, and non-special purpose projects
• 15-20% equity required for start-up, and, or special purpose projects

Job Creation and Retention
Create or retain one full-time job for every $75,000 borrowed, $120,000 for manufacturers.

Fees

• $750 Application Fee
• 2.7% commitment and closing fee (debenture funded)
• 0.5% participation fee based on senior loan amount (out-of-pocket)
• $3,000 closing costs and recording fees (debenture funded)

SBA 504 Partnership

The York County Economic Alliance (YCEA) and the EDC Finance Corporation (EDC Finance)

have partnered together to offer SBA 504 loans to York County businesses. YCEA provides a

reliable, local loan origination point of contact for the York County business and their bank partner.

YCEA staff processes the application and is the borrower’s point of contact during all stages of the

SBA 504 loan approval. EDC Finance provides the structuring expertise, credit underwriting and

maintains the back-office functions related to closing and servicing the loans. There are several

key components exclusively offered through the partnership:

• YCEA serves as the primary local contact for all York County SBA 504 loans
• EDC Finance maintains a voting York County representative on its loan committee
• YCEA staff attends and provides local decision-making input to the EDC Finance loan
• committee
• A portion of loan fees stay in York County to support future economic development efforts

Program Summary

The SBA 504 Refinance program provides small businesses with assistance in restructuring long-term,

fixed-rate financing for strategic initiatives or to unlock available equity in their commercial assets. Loans are

available to most for-profit businesses for qualified projects that result in the creation or retention of jobs.

Key Benefits

• 10, 20 or 25-year fixed rate options
• Loan to value up to 90% on straight refinance
• Loan to value up to 85% on cash out refinance
• Subordinate financing to primary lender

Eligible Businesses

Sole proprietorships or small businesses (tangible net worth <$20 million and 2-year average net income

<$6.5 million) including:

• Most for-profit, small businesses (500 employees or fewer)
• Agriculture production

Uses and Purposes of Funding

• Refinance existing commercial mortgages over 2 years old
• Refinance of other commercial loans secured by fixed assets
• Fund operating expenses incurred, but not already paid
• Fund future operating expenses to be paid in the next 18 months

Interest Rate

Market interest rate based on prevailing 5 and 10-year Treasury notes plus a fixed rate spread.

Terms

• 20 or 25-year fixed rate term for real estate
• 10-year fixed rate term for machinery and equipment
• 10% equity required
• 15% equity required for start-up projects

Loan Structure

• Loans are made in conjunction with a loan secured from a private lender with a senior lien covering up to 50% of eligible refinance amounts and operating expenses
• SBA 504 Loan will be placed in a subordinate position for up to 50% of the eligible refinance amounts and operating expenses
• Operating expenses are limited to no more than 25% of the value of the fixed asset collateralizing the loan
• Borrower may provide

Amounts

• Loans up to $5,000,000 or 50% of total eligible refinance amounts and operating expenses, whichever is less
• Loans up to $5,500,000 or 50% of total eligible refinance amounts and operating expenses, whichever is less for manufacturers and certain energy efficient projects

Job Creation and Retention
Create or retain one full-time job for every $65,000 borrowed, $100,000 for manufacturers.

Fees

• 2.2% commitment and underwriting fee (debenture funded)
• 0.5% participation fee based on senior loan amount (out-of-pocket)
• $3,000 closing costs and recording fees (debenture funded)

SBA 504 Partnership

The York County Economic Alliance (YCEA) & the EDC Finance Corporation (EDC Finance) have partnered

together to offer SBA 504 loans to York County businesses. YCEA provides a reliable, local loan origination

point of contact for the York County business and their bank partner. YCEA staff processes the application

and is the borrower’s point of contact during all stages of the 504 loan approval. EDC Finance provides the

structuring expertise, credit underwriting and maintains the back office functions related to closing and

servicing the loans. There are several key components exclusively offered through the partnership:

• YCEA serves as the primary local contact for all York County 504 loans
• EDC Finance maintains a voting York County representative on its loan committee
• YCEA staff attends and provides local decision-making input to the EDC Finance loan committee
• A portion of loan fees stay in York County to support future economic development efforts

Program Summary

• Provides private sector financing at lower than conventional interest rates to qualifying federally tax-exempt projects
• Administered through the York County Industrial Development Authority (YCIDA) and the General Authority of Southcentral Pennsylvania (GASP)

Eligible Businesses

Tax-Exempt:

• Manufacturing
• 501 (c)3 organizations
• Federally defines exempt facilities
• All projects must qualify under federal tax laws

Taxable:

• No restrictions

Uses and Purposes of Funding

• Land and building acquisition
• Building construction and renovation
• Machinery and equipment
• Closing costs, which are subject to a federal cap
• Other uses as permitted by federal tax law

Amounts
Manufacturing:

• Up to $10,000,000 subject to federal capital expenditure limitations and allocation of federal volume cap

Other projects:

• Subject to federal tax laws

Financing Instrument
Note or mortgage:

• Provided by a bank to the borrower via YCIDA or GASP
  Interest earned is exempt from federal and state taxes, which allows the bank to reduce its interest rate to the borrower

Bonds:

• Due to issuance costs, bond transactions typically exceed $3,000,000
  Issued by the YCIDA or GASP, which are backed by a letter of credit and tax-exempt to the bondholders

Interest Rate and Term
Note or mortgage:

• Determined by bank

Bonds:

• Determined by the pricing of bonds, the letter of credit fee and other costs associated with the issuance of the bond

Job Creation and Retention

• Create or retain one full-time job for every $50,000 borrowed

Fees
YCIDA Fees:

• $2,000 non-refundable application fee, which is applied to the closing fee
• Closing fee of .75% of the tax-exempt financing amount
• Closing fee of .25% of the taxable financing amount
• YCIDA legal fees
• Annual audit fee, which is based on annual cost
• Loan/Bond Amendment fee for actions subsequent to closing the financing

GASP Fees:

• $2,500 administrative fee
• 20-50 Basis Points Issuance Fee based on the project size
• GASP legal fees
• All out-of-pocket costs
• Loan/Bond Amendment fee for actions subsequent to closing the financing

Program Summary
Public financing tool used to fund public works or improvements for private residential, commercial or industrial development or revitalization through the allocation and dedication of all or a portion of the additional taxes resulting from increases in property values or from the increase in commercial activity as a result of the development or revitalization project.

Uses and Purposes of Funding

• Capital costs, including costs of actual construction, rehabilitation, remodeling or repair of buildings, structures or fixtures
• Acquisition, upgrade or rehabilitation of machinery or equipment
• Acquisition, clearing or grading of land
• Financing costs
• Real property assembly costs
• Professional fees of architects, planners, engineers, and lawyers
• Administrative costs
• Relocation costs
• Capital costs may also include costs of construction, rehabilitation or repair of publicly owned infrastructure outside the tax increment district that is of direct benefit to a project

Issuing Authority
A redevelopment authority, an industrial and commercial development authority or by agreement with a redevelopment authority, a municipal authority, is designated as the issuer of the TIF Bonds or notes, receives the allocated tax increments and deposits them into a tax increment fund.

TIF District
A contiguous geographic area within a “redevelopment area” which a planning commission has found to be “blighted” in accordance with the Urban Redevelopment Law so as to require redevelopment under that Act or the TIF Act. The term of the TIF District may not exceed 20 years unless an amendment is made to the initial project plan.

Tax Increment Allocation
Determined by the local taxing bodies (county, school district, municipality) levying taxes in the TIF District.

Terms

• May not exceed 20 years

Fees

• Issuing authority fees and out of pocket costs
• Legal fees

Program Summary
An alliance of a variety of educational providers across Pennsylvania — including Pennsylvania’s 14 State System universities, Pennsylvania’s 14 community colleges and other educational providers — that acts as the delivery mechanism for the Commonwealth’s Guaranteed Free Training (GFT) program.

Employer Qualifications 
Employer must be based in Pennsylvania or have significant presence in the state. Point-of-sale retail businesses, gaming establishments, training vendors, employment agencies, government agencies, government-owned facilities, education and nonprofit entities are ineligible. Prior grant recipients with a high employee turnover (greater than 40%) may be declared ineligible. Participation is limited to two years in a row and three out of the past five years. Training must commence within five months of the grant approval letter or by the end of the fiscal year, whichever comes first. If not, the funds will be forfeited.

Employee Qualifications
Employees must be residents of Pennsylvania and employed in Pennsylvania. Employees must earn at least 150% of current federal minimum wage, excluding benefits. The jobs must be permanent full-time positions eligible for full-time benefits.

Training Program

• The GFT program includes both instructor-led and online courses which can be taken on-site at the company, at a training provider or online at any convenient location.
• The WEDnetPA-managed GFT Program offers two training programs:
• Basic Skills Training – provides instruction in a variety of basic and entry-level skills
• Information Technology Training – provides instruction in a variety of information technology and advanced applied manufacturing subjects