The Moshannon Valley Economic Development Partnership has been awarded a $123,750 loan for the acquisition of the former Philipsburg Area Hospital site.
The 15-year, low-interest loan is one of eight the state Department of Community and Economic Development announced on Wednesday. The loans are awarded through a statewide Pennsylvania Industrial Development Authority program.
“The eight PIDA loans approved this month represent significant opportunities for businesses across the commonwealth to grow and prosper,” DCED Secretary Dennis Davin said in a statement. “Their progression will in turn aid in stimulating our economy and foster opportunities for job creation and retention in Pennsylvania.”
MVEDP plans to subdivide the 14.79-acre site into 2- to 3-acre lots, Executive Director Stan LaFuria said in an email. The new site is proposed to house up to five businesses, LaFuria added, though another option exists to market the entire location to interested companies.
The loan’s 2.25 percent rate stays fixed for the first seven years. The estimated cost of the project is $165,000.
LaFuria said the hope is to have four to five companies occupy the site, employing up to 50 people. The partnership, a private nonprofit that facilitates business development in the Moshannon Valley, plans to contract with a commercial real estate company to assist in marketing and any potential sale.
MVEDP’s 14-lot regional business park has four spaces remaining — a key motivation for the acquisition.
“We need more land to stimulate private investment and job creation and retention,” LaFuria said.
PIDA approved more than $2.7 million in loans in the past month. Among the eight projects across Centre, Bucks, Lancaster, Union and Westmoreland counties, more than $4.3 million will be generated in private investments, according to a release.
PIDA, which is regulated through DCED, has approved more than $32.5 million in loans in 2016.
The loans are financed through a revolving loan fund, DCED Deputy Communications Director Heidi Havens said in an email. Their interest rates, which are updated quarterly, are based off the 10-year Department of the Treasury rate.
Roger Van Scyoc: 814-231-4698, @rogervanscy