As the economic challenges of the COVID-19 pandemic continue, a new loan program is available for small businesses in the 11-county region served by the SEDA-COG development district, which includes Centre County.
Centre County Commissioner Mark Higgins, who serves on the SEDA-COG Board of Directors, said at Tuesday’s commissioners’ meeting that about $400,000 in funding is available to for-profit businesses through the new Revolving Loan Fund program.
The minimum loan amount is expected to be $10,000.
The interest rate on loans will be 3.25 percent. No payments would be due in the first sixth months of the loan, after which payments will be amortized on a three-year term. Interest accrues during the first six months and will be added as a balloon payment on the last installment.
Funds can be used for various working capital expenses, including past expenses. Loans will be secured by a blanket lien on assets.
A $500 underwriting fee and Universal Commercial Code filing fee of about $100 will be charged once funds are disbursed and can be drawn from the loan proceeds.
‘We urge Centre County businesses to apply as soon as possible,’ Higgins said. If the Revolving Loan Fund program is oversubscribed, this demonstrates the need for more small business assistance programs at the regional, state and federal levels. If the first round of the SEDA-COG Revolving Loan Fund is successful, it is possible that additional funding could be developed.’
Higgins said he expects hundreds of local businesses likely will be interested in the program and noted that Centre County constitutes about 25 percent of the population of the SEDA-COG region.
Once enough applications are received to disburse the funds, the application period will close and the SEDA-COG board will determine which companies will receive loans.
Because it is a local program, Higgins said he anticipates loans will be delivered ‘fairly quickly.’
He added that businesses that have received assistance from other state and federal programs are still eligible for the Revolving Loan Fund program.
‘There are no — at this point, that I’m aware of — other qualifications besides being a for-profit business located in the 11-county region,’ he said. ‘So if you received money from any of the other programs, that’s great. If you need more, this is available as well.’
Businesses that wish to apply should email Douglas Wilburn, SEDA-COG Business Finance Department director, at Dwilburn@seda-cog.org. Applications are being accepted effective immediately.
In addition to Centre County, the SEDA-COG region includes Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder and Union counties.
