SEDA-Council of Governments (SEDA-COG) has established a new loan program using funds obtained through the U.S. Economic Development Administration. The loans are available to businesses in Centre, Clinton, Lycoming, Union, Montour, Columbia, Mifflin, Snyder, Northumberland, Juniata, and Perry Counties.
There is a limited pool of funds available: $400,000 in total. There are no payments due within the first six months of the loan.
“We know businesses are hurting and we are using creative solutions to help meet the current needs in this ever-changing economic climate,” Executive Director John Brown said. “As the local community and economic development agency, we are thrilled to partner with the EDA to further assist our region.”
Doug Wilburn, director of SEDA-COG’s Business Finance program, worked with the EDA to get these funds reallocated for a broad array of businesses since they were originally limited to specific business sectors.
“This loan fund was reallocated by SEDA-COG in response to the COVID-19 crisis. The partnership of SEDA-COG and the EDA will give businesses in our region some relief. SEDA-COG has heard the voice of our communities and we will continue to look for ways to help local businesses through these trying times,” Wilburn said.
For-profit businesses can apply for loans of at least $10,000 with an interest rate of 3.25%. Funds can be used for working capital and can be disbursed based on past working capital expenses.
There is a $500 underwriting fee and a $100 filing fee.