North Central Approves $ 880,000 EDA CARES Act Loans Until June 30 | news

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RIDGUEI: “Did anyone else have a frost this morning?” asked Commission Chair Carol Duffy of McKean County as the actual meeting of the North Central Pennsylvania Regional Planning and Development Commission actually kicked off Wednesday morning. The meeting was short: 4 additional loans were unanimously approved by the entire board of directors.

North Central was awarded $ 1.76 million from the Economic Development Administration (EDA) of the US Department of Commerce under the Coronavirus and Economic Security Assistance Act (CARES) to create a loan fund to provide affordable and flexible financing to regional businesses for projects that will prevent, prepare for and respond to the COVID-19 pandemic or the economic damage caused by the COVID-19 pandemic. The features of the EDA CARES Act Relief loan fund have been designed to make credit affordable and affordable for small businesses. The financing can be used to finance the purchase of fixed assets and working capital with a deferred loan payment for the first six months at a 0% interest rate. Thereafter, a fixed interest rate of 0.75% to 1.75% will be used for loan amounts up to USD 100,000. Loans under $ 25,000 go through an expedited review and approval process, making it quicker to get by with local businesses. Funding under the EDA Law Cares can act as a sole lender or combine with a bank and / or other funding sources. A settlement fee of 1.5% of the loan amount is canceled together with the loan, which is not otherwise provided. Local businesses interested in the program should contact Jennifer Hibbard, Director of the Loan Program, at: jhibbard@ncentral.com… More information is also available on the North Central website at: ncentral.com

As of June 30, the board of directors approved loans in the amount of USD 880,000 in 2021, which is easily in line with the Federal guidelines, according to which 50% of the loan funds must be distributed during the first 6 months of the program. Applicants from each county represented by North Central have been approved for funding under the EDA CARES Act. Four more loans were approved at this virtual meeting. As the primary Local Development District (LDO) for Cameron, Clearfield, Elk, Jefferson, McKean and Potter Counties, one of North Central’s primary functions is to provide finance to both businesses and municipalities in the region. On Wednesday, the Northern Central Council approved four loans to local businesses totaling $ 190,000 through the EDA CARES Act, which was created last year in the wake of the COVID-19 pandemic. Additional funding was also provided through USDA and ARC funds totaling $ 237,500. The Board unanimously approved all loans.

Harold Carschner, owner of the Galtown, Potter-based Protektor Model Company, has applied for a $ 100,000 loan under the EDA Cares Act. Loan term – seven years, interest rate – 0.75%. The loan will be used to purchase equipment, including a CNC lathe, laser engraver and sewing machine, to produce parts in-house and eliminate the need to outsource. This will eliminate the outsourcing delays that the business has experienced due to COVID-19.
Barnhart Davis LLC and Barnhart-Davis Company, a NAPA store in Ridgeway Elk County, requested a $ 65,000 loan from the USDA fund. Loan term – fifteen years, interest rate – 2.5%. The loan will be used to expand the Ridgway NAPA store for additional space required for parts warehouse and retail. It is assumed that six jobs will be retained, several of which will be added during the term of the loan. An additional $ 175,000 loan was also approved under the ARC Fund on the same terms.
Sidelinger Brothers Tool & Die, Inc. from Kersey in Elk County applied for a loan of $ 40,000 from the EDA Cares Act. Loan term – seven years, interest rate – 0.75%. The loan will be used to purchase equipment for the plant. Three full-time jobs will be retained with the possibility of creating new jobs during the term of the loan.
RTB2 Good Food, Kersey Corner Market in Elk County has requested a $ 50,000 loan. The loan term is five years, the interest rate is 0.75%. The loan will be used to replenish inventory and working capital for a long-standing grocery store. It is expected that one full-time and 10 part-time jobs will be retained throughout the loan term.

North Central’s next full board meeting will take place on Wednesday 28 July at the organization’s headquarters at Ridgmont Dive in Ridgway, starting at 9:30 am and will also be available virtually.

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