A new loan program is available for Centre County businesses. Here’s what to know
A new loan program, launched by SEDA-COG, will provide $400,000 in new loans for local businesses in its 11-county region.
Centre County Commissioner Mark Higgins announced the revolving loan fund program during Tuesday’s board meeting. To assist small businesses in Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder and Union counties, the program is available to for-profit companies.
“We encourage Centre County businesses to apply as soon as possible. If the revolving loan fund is over-subscribed, this demonstrates the need for more small business assistance programs at the regional, state and federal levels,” Higgins said. “If the first round of SEDA-COG revolving loan fund is successful, it is possible that additional funding could be developed.”
No payments will be due the first six months of the loan, and amortization will be over a three-year term. Interest will accrue at a rate of 3.25% from the first day, and interest from the first six months will be added as a balloon payment as part of the last installment.
“The funds may be used for a broad array of working capital purposes and can be disbursed based on past working capital expenses — a lot of flexibility there,” he said.
There is a $500 application fee and $100 filing fee that will be charged when funds are dispersed. To apply, business owners are asked to contact SEDA-COG Loan Officer Douglas Wilburn at dwilburn@seda-cog.org.
The expected minimum loan, Higgins said, is $10,000. The SEDA-COG board of directors will determine which companies receive loans.
“I suspect in Centre County it’s hundreds of companies that would be interested,” Higgins said. “We are roughly 25% of the population of the SEDA-COG region.”
Since the program is local, Higgins expects businesses will see funds “fairly quickly.” If a business received assistance from previous state or federal loan programs, entrepreneurs are still eligible to apply for the SEDA-COG program.
“If you received money from any of the various other programs, that’s great. If you need more, this is available as well,” he said.
