DCED lowers interest rates on several loan programs
In December, DCED lowered the rates from 2.75 percent to 1.5 percent for the following programs:
* Machinery and Equipment Loan Fund
* Small Business First Program
* Pollution Prevention Assistance Program
* Export Financing Program
In addition, the Pennsylvania Industrial Development Authority approved lowering its interest rates to 1.5 percent.
PIDA and DCED also will waive their fees charged to the borrowers.
Lowered interest rates were one of the key recommendations made in August by the Governor’s Manufacturing Advisory Council. The council’s report outlined 15 recommendations, including improved access to capital.
According to the report, 45 percent of small manufacturers accessed debt capital in 2010 and 78 percent of small manufacturers are negatively affected by a lack of access to capital, the governor’s office said.
“Access to capital is a critical component of any successful manufacturer,” DCED Secretary C. Alan Walker said during today’s presentation at PRL Industries in Lebanon County. “By reducing interest rates and the cost of borrowing, we are encouraging new growth through providing critical access to capital and freeing up operating cash to support new job creation.”
Courtesy of the Central Penn Business Journal. Read the full article here: