Financing & Incentives
Allentown Enterprise Zone Revolving Loan Fund
The Enterprise Revolving Loan Fund encompasses more than $1.1 million in financing assistance.
Eligible businesses include industrial, manufacturing, and technology-oriented businesses that are located within the boundaries of the Enterprise Zone. AEDC will work with a bank and other lending programs (such as the Commonwealth of Pennsylvania, the Small Business Administration, and others) as part of an overall lending portfolio to fund a project.
This financing is available for the purchase of machinery and equipment, real estate purchases and improvements (including leasehold improvements), or working capital in some cases. Businesses may borrow up to 75 percent of total project costs up to $100,000 at competitive interest rates and terms as long as 10 years (depending on the amount borrowed).
The fund is not available for commercial or retail businesses.
Download Enterprise Zone Loan Fact Sheet: EZ Revolving Loan Fund Guidelines (5-2013)
Pennsylvania Minority Business Development Authority Revolving Loan Fund
Businesses must be at least 51 percent owned by borrowers who are socially or economically disadvantaged. This may arise from cultural, racial or chronic economic circumstance, background or similar cause.
As per the Commonwealth and the Small Business Administration, socially disadvantaged owners include but are not limited to African Americans, Native Americans, Hispanic Americans, Aleuts, Asian Americans, Asian Indians and Eskimo’s. Socially disadvantaged applicants need to demonstrate that due to circumstances beyond their control, that they were subject to cultural bias within American society because of their identities as members of groups without regard to their individual qualities. Women, for example, may be considered socially or economically disadvantaged under certain circumstances. Economically disadvantaged owners are those whose ability to compete in free enterprise has been impaired due to diminished capital and credit opportunities when compared to others in the same business area.
Download PMBDA Loan Fact Sheet: PMBDA Revolving Loan Fund Guidelines (7-2017)
Michael and Esther Rowland had put together an $800,000 financing package to purchase, refurbish and fit out a new office and clinic for Michael’s innovative dental practice, Oral Dynamics. Maxed out on their bank financing, the Rowlands needed another $150,000 to purchase and install several critical pieces of dental equipment for Michael’s dental esthetics practice, and they had been stymied in their approach to a local development agency.
Working with the AEDC staff, they not only obtained $100,000 through the Enterprise Zone Revolving Loan Fund but they were connected to another agency that was able to provide the final $50,000 that allowed Oral Dynamics to open at 2610 Moravian Drive in Spring 2011. Today the practice employs a total of seven people, including a second doctor, and they plan to hire two more dentists by mid-summer, Esther Rowland says.
“It was absolutely critical. We couldn’t have opened without it. They needed collateral but we closed and I don’t remember a single issue causing problems.”