DCED Secretary Announces Allocation of Federal Funds to Support Small Business Job Creation

December 21, 2011 –  Harrisburg – Department of Community and Economic Development (DCED) Secretary C. Alan Walker announced today the  allocation of $29.2 million of funding from the United States Department of the Treasury’s State Small Business Credit Initiative (SSBCI) to economic, community and technology development partners throughout the  commonwealth.

“The  Corbett administration is committed to supporting our small  businesses and the best way to do that is by partnering with the private sector to maximize resources,” said Walker. “I am proud to say that Pennsylvania is the only state in the nation that requested proposals from our local partners with a goal of maximizing investment and supporting the best projects. This initiative will result in significant small business job creation across the  state.”

After receiving notification from the Treasury department of the  SSBCI program, DCED reached out to its development partners throughout the state to determine what funding gaps currently existed for small  businesses. As a result, the department determined that the best approach was to give the organizations, which interact with small  businesses every day, the opportunity to apply for a portion of the funding.  By partnering with the private sector to support local  projects -rather than using the entire funding to supplement existing state programs -the impact of  job creation and private investment in the commonwealth will be much greater.

The SSBCI program is part of the Small  Business Jobs Act that was signed into law in September, 2010. Funding  will  be allocated to 12 entities to support statewide and regional job generating programs, early-stage technology companies and Community Development Financial Institutions.

Secretary Walker  was joined today by State  Senator John Gordner and representatives of the organizations that will  be receiving the SSBCIfunding.

“Small businesses are an integral part of Pennsylvania’s economy, accounting for over  98 percent of the  state’s employers and nearly 50 percent of its  private-sector employment,” said Gordner.  “I applaud DCED for taking a business-minded approach and reaching out to address and enhance small business’ capital needs.”

For more information about economic development initiatives in Pennsylvania, call 1-866-466-3972 or visit newPA.com.

Media contact:
Steven Kratz, DCED; 717-783-1132

Editor’s Note: Allocation of SSBCI Funds

Altoona-Blair County Development Corporation (ABCD Corp)  is a DCED certified  economic development corporation, serving  nineteen  counties  in south Central and Western Pennsylvania.   The organization will use the funding  to create the “Innovate PA fund”- a program designed  to provide  low-interest loans to meet the financing  needs of small businesses that  are presently not being  met by public and private  lenders.  ABCD Corp. will receive  $2 million of SSBCI funding, projected to finance a minimum of 12 loans and create  at least 80 jobs.

Ben Franklin Technology Development Partners (BFTDA) and the Life Science  Greenhouses (LSG) are non-profit economic  development intermediaries created  by the commonwealth to accelerate innovation, economic  growth  and jobs in the state’s  high technology economy.  The BFTDA and LSG programs will receive $5 million of SSBCI funding, projected to finance 17 early-stage Pennsylvania technology companies, create 163 high-paying jobs and attract over $50 million of private  financing.

Bridgeway Capital is a DCED Community Development Financial Institution that serves businesses and nonprofits in Western Pennsylvania.   The organization will receive $2 million in SSBCI funding to continue making entrepreneur and growth capital  loans, and loans to nonprofits. The funding  is projected to finance 510 loans, create nearly 2,600  jobs and attract over $97 million  in private financing.

Central Bradford Progress Authority (CBPA) is a DCED certified area loan organization covering  the counties  of Bradford, Susquehanna, Sullivan and Wyoming. The organization will utilize  its 18 years of economic development lending experience to provide capital to small business in their region and those specifically tied to Marcellus Shale.  CBPA will receive $1 million of  SSBCI funding, projected to finance 10 loans and create 150 jobs.

Community First Fund is a DCED certified Community Development Financial Institution that  serves 13 counties  in central and eastern Pennsylvania.   Community First will receive $2 million in SSBCI funding to provide loans to underserved small businesses with impaired access to credit during  the current recession.  The funding will be used to create an additional $19 million in private economic  investments, and is projected to finance 246 loans and create  1,850  jobs.

The Economic Opportunities Fund {EOF) of the Womens Opportunity Resource Center is a Community Development Financial Institution that serves the five­ county Philadelphia region.   The organization will utilize its 12 years of economic development experience to continue  providing low-income women and minorities with startup capital.   EOF will receive $262,500 in SSBCI funding,  projected to finance 39 loans and create 26 jobs.

Northside Community Development Fund (NCDF) is a DCED certified Community Development Financial Institution that provides financing for small business and real estate  projects on Pittsburgh’s Northside. The funding will be used to make loans to underserved,  low-income census neighborhoods.  NCDF will receive $250,000 in SSBCI funding, projected to finance 5 loans, and create 13 jobs.

Pennsylvania Industrial Development Corporation (PIDC) is private nonprofit corporation with a 53 year history of stimulating economic development by leveraging financing and real estate resources that attract,  retain and grow businesses in Philadelphia.   PIDC will receive $2 million of SSBCI funding, projected to support  a minimum of four projects and create at least 40 jobs.

The Progress Fund is a DCED certified Community Development Financial Institution serving  39 counties in Western and Northern Pennsylvania.   The organization will receive $2 million of SSBCI funding  to continue  providing capital for rural, tourism-related projects. The funding  is projected to finance  40 loans, and create 500 jobs.

The South  Eastern Economic  Development Corporation (SeedcoPA) is a DCED certified economic development corporation serving  Chester County.  The organization will serve as the Credit Support Program for the SSBCI-funded and approved Pennsylvania Regional Revolving  Loan Fund (PRRLF).  The PRRLF will include many of the Southeastern Pennsylvania economic development councils and local and regional  banks.  These entities will contribute capital to the PRRLF which will be used as a source of funds for the loans. SeedcoPA will receive $2 million of SSBCI funding, projected to support  a minimum of 40 projects  and create at least 186 jobs.

SEDA-COG is a DCED certified economic development corporation serving 11 counties in Central Pennsylvania.   The organization will use the funding to provide small businesses loans to for-profit companies involved in promoting technology and communications, and businesses involved in Marcellus and Utica Shale activities.  SEDA-COG will receive $1 million of SSBCI funding, projected to support 10 loans and create at least 420 new jobs.

The Pennsylvania Machinery and  Equipment Loan Fund  (MELF) is administered by DCED and designed to attract economic growth by providing low­ interest loan financing for a portion of the cost of machinery and equipment purchases. To be eligible  for MELF, businesses  must commit to creating or retaining jobs. MELF will receive $9 million of SSBCI funding, projected to support a minimum of 13 projects and create at least 828 jobs.
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