Other financial assistance programs available to Lehigh Valley businesses.

BEN FRANKLIN TECHNOLOGY PARTNERS OF NORTHEASTERN PENNSYLVANIA

The Ben Franklin Technology Partners of Northeastern Pennsylvania (BFTP/NEP) links Pennsylvania companies with universities, funding, and other resources to help them prosper in today's knowledge-based economy through innovation. The Center is a non-profit corporation that is part of a four-center, state-funded economic development initiative. The Commonwealth created the Ben Franklin program in 1983 to play a leadership role in strengthening regional economies, building the state's technology economy, and creating and retaining high-wage, high-skilled jobs.

BFTP/NEP's strategy encompasses three key areas:

• Developing early-stage, technology-oriented companies
• Helping established manufacturers creatively apply new technology and business practices
• Promoting community-wide initiatives that foster a favorable business environment for high-growth companies.

The Ben Franklin Technology Partners of Northeastern Pennsylvania is headquartered on the campus of Lehigh University in Bethlehem, and operates Ben Franklin TechVentures®, an award-winning technology incubator/post-incubator facility, also at Lehigh.

Early-Stage Firm Investments

Ben Franklin investments in early-stage firms are provided in the form of  subordinated debt with detachable warrants. The terms of the loan are:

• It has an eight-year time period, and interest payment obligations begin after the close of the project.

• Interest accrues quarterly at a rate of 6%
• The principal and any accrued, non-paid interest are due by the end of the eighth year in the form of a balloon payment.

The pricing of the warrant is based on a pre-determined valuation that depends on the company’s commercialization status, the experience of the management team, and the financial commitment of the founders and any investors. The warrant is exercised at the option of BFTP/NEP.

Established Manufacturing Company Investments

Ben Franklin provides a 1:1 matching grant for technology-based manufacturing innovation in established manufacturers. The support is directed to enterprise-wide solutions, including the company’s manufacturing process, development of new products, and/or improvement of existing products.

 The grant is up to a maximum of $50,000 For example, if the project costs $100,000, the company pays $50,000 and Ben Franklin grants $50,000. If the project costs $150,000, the company pays $100,000.

• The maximum duration of a project is twelve months.
• A project may be continued for up to two additional years. The maximum amount that Ben Franklin grants totals $150,000 over three years.
• All funding goes to a Pennsylvania college or university which provides technical support to the client company.

 For more information about BFTP/NEP, call 610-758-5200; visit on line; or e-mail info@nep.benfranklin.org.

EMPLOYER OUTREACH GRANT PROGRAM

Hiring Office of Vocational Rehabilitation (OVR) job applicants really pays. The grant program offered by OVR through LVEDC gives businesses approximately $15,000 to purchase machinery or equipment to be operated by an OVR job candidate. Other tax credits and incentivce can add up to nearly $70,000 over three years for businesses that hire individuals with disabilities.

Whether you are in need of qualified workers, manufacturing equipment, computers, building modifications or cash registers, to name a few, the Employer Outreach Grant Program has the people and funds that are right for you.

MANUFACTURERS RESOURCE CENTER LOAN FUND (MRC)

The Manufacturers Resource Center (MRC) established the MRC Loan Fund in January of 1998 to help small and mid-size manufacturers grow by increasing the availability of financing at below-market rates.

Eligibility is limited to established manufacturers with fewer than 500 employees located in Berks, Upper Bucks, Carbon, Lehigh, Northampton and Schuylkill counties. Loan funds may be used for equipment purchases and most working capital needs. Loans cannot be used to repay other debt, pay taxes or fund advances.

The banks participating in this program will charge no more than 2.25 percent above the one-year CD rates for loans not exceeding MRCs principal and term limits. Loans exceeding the limits will be subject to a blended rate.

For equipment with a usable life of more than five years, the term of the loan is five years. On working capital and other shorter-term projects, the loan term will be from two to three years at the banks discretion. The origination fee will be no more than one percent of the principal amount of the loan. The bank will take a lien on the collateral being financed. If the assets being financed are soft or insufficient to support the loan, then a back-up lien on other available collateral will also support the loan. Qualifying companies must meet minimum financial criteria. For more information contact the MRC at 610-758-5599.

CUSTOMIZED JOB TRAINING

This program provides grant funds to businesses through local education agencies to develop and provide specialized job training to newly hired employees. Funds are to be used to support the development of training activities that will enable businesses to improve efficiency and to better compete in the global marketplace. Grant funds can be provided on a matching basis for the preservation and upgrading of jobs that would otherwise be lost.

ICAN Grant Program

The Office of Vocational Rehabilitation's (OVR) Independence Capital Access Network (ICAN) Grant Program provides grants up to $50,000 to small businesses with no more than 100 employees in order to help them accommodate qualified workers with disabilities. Your business is eligible for an ICAN grant whether you hire new employees or currently employ staff with disabilities.

ICAN grants are approved for a multitude of applications that can help your business accommodate workers with disabilities, including:

• Building modifications
• Adaptive equipment or machinery
• Vehicle modifications
• Specialized training

ICAN has helped small businesses like yours install ramps, automatic doors, paved parking and sidewalks, stair lifts and elevators, as well as adapt machinery for use by a person with a disability and much more. The ICAN program has helped companies accommodate employees with disabilities in positions ranging from CFOs to machinists to consultants.

Allentown

ALLENTOWN ENERGY CONSERVATION PROGRAM

Low-interest loans of $10,000 to $750,000 are available, through a special arrangement with the Sustainable Energy Fund (SEF), to qualifying entities with their principal office or significant operations located in the City of Allentown. Loans are available for energy-efficiency and renewable-energy projects involving heating, cooling,
windows, doors, insulation, solar or geothermal energy, lighting, high-efficiency motors, and other qualifying improvements.

Loans to small small businesses and not-for-profit organizations

For these purposes, this program is funding low-interest loans and rebates to certain businesses and not-for-profit
organizations located in the City of Allentown, and low-interest loans to qualified city homeowners.

Program guidelines

Terms and conditions include:
- 100% project financing (no match needed)
- First $25,000 at a 1.5% interest rate (reduced from SEF’s regular 6.5%)
- Additional funds (up to $725,000) at a 6.25% interest rate
- No prepayment penalty
- Subordinate lien positions
- Up to five years to repay
- Loan payment sized to energy savings
- Davis-Bacon Wage Determinations (”prevailing wage rates”) apply to all commercial loans
- Entity must employ less than 150 full-time-equivalent employees and be current on all taxes and fees
- Minimum loan: $10,000

Rebate Program

Rebates of $2,500 to $5,000 are offered for projects that involve an investment of at least $7,500 in energy saving improvements. Rebates cannot exceed 30% of the documented costs of energy-saving improvements. Davis-Bacon Wage Determinations (”prevailing wage rates”) apply to all labor costs associated with this rebate program

Not-for-profit organizations: The organization’s principal office (or significant operations) and the funded project must be located in the city to be eligible. The applying entity must employ less than 150 full-time-equivalent employees.

Small businesses: The business’ principal office (or significant operations) must be located in the city, and the funded project must be located in one of three designated “Green Zones”* to be eligible. The applying entity must employ less than 150 full-time-equivalent employees.

*Allentown “Green Zones” include the 500 through 1100 blocks of West Hamilton Street, Seventh Street from Linden Street to Green Street, and Nineteenth Street from Liberty Street to Washington Street. The project site’s legal address must be on West Hamilton, Seventh, or Nineteenth streets.

For more information please contact: Thomas J. Kerr, Consultant to the City of Allentown at 610-437-8713 or KerrT@AllentownCity.org

DOWNTOWN FACADE PROGRAM

This program is designed to improve the appearance, safety and energy efficiency of downtown retail properties and to provide for interior renovations and equipment purchases for retail operators. Eligible borrowers are retail building owners or retail tenants located within Allentowns Downtown Improvement District. Eligible projects include facade improvements, retail equipment and code work. Loan amounts range from $3,000 to $30,000 at a 5 percent interest rate.

HAMILTON STREET FACADE SELF-FORGIVING LOAN PROGRAM

The Hamilton Street Façade Self- Forgiving Loan Program is a program to improve the appearance of Hamilton Street between 6^th and 10^th Streets.  The purpose of the program is to encourage façade improvements using appropriate designs which highlight the historic beauty of the Hamilton Street buildings.  Loan amounts are between $20,000 minimum and $30,000 maximum with a dollar per dollar match required. This is a 0% interest, five year, self-forgiving loan program with real estate collateral needed. All exterior work on the building must meet the Hamilton Street Façade Guidelines and City Guidelines for Rehabilitation of Historic Buildings. 

ENTERPRISE ZONE LOAN

Available to businesses located within the Allentown Enterprise Zone. Recipients must create and/or retain jobs that will provide employment for enterprise zone residents and/or otherwise provide tangible benefits to the zone to increase overall economic activity and/or enhance the economic environment within the zone. Applicants may receive between $10,000 and $100,000 for improvements to the real estate including leasehold improvements, equipment, or working capital. Depending on creditworthiness, recipients pay 5.25%-8% interest for 3 to 10 years. Collateral Required.

For more information about Allentown Area Financing, contact Allentown Economic Development Corporation at 610.435.8890 or www.allentownedc.com.

Bethlehem

FACADE PROGRAM

This program is offered as an incentive to property owners in Bethlehems North and South Side Central Business Districts. Funds may be used for window replacement, exterior painting, brick-pointing, signage and other building facade improvements. Improvements must meet the Secretary of the Interior Standards for Rehabilitation and the Guidelines for Rehabilitating Historic Buildings. Loan amounts may not exceed $30,000 and remain interest free for 15 years.

FUND FOR REVITALIZATION AND ECONOMIC DEVELOPMENT (FRED)

FRED provides low-interest rate gap financing to businesses that will create and/or retain jobs within the City of Bethlehem for low- to moderate-income households. Funds may be used for land and building acquisition, building renovation or rehabilitation, equipment and machinery, and interim financing. Gap financing is defined as the difference between the total project cost and the maximum amount of private financing available. The amount of the loan, the term and the interest rate depend upon what is necessary for the projects financial success.

LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE (LERTA)

LERTA is a property tax abatement program that creates a graduated increase in the payment of taxes on improvements and new construction to commercial, industrial and other business property located within the City of Bethlehems state-designated Enterprise Zone and the North Side Central Business District. This incentive creates a 20 percent graduated increase in the payment of taxes on improvements to commercial, industrial and other business property over a five-year period and a 10 percent graduated increase in the payment of taxes on new construction of commercial, industrial and other business property over a 10-year period. The graduation of taxes applies only to the taxes that are attributable to the improvement project.

For more information about Bethlehem Area Financing, contact BEDCO at 610-865-7056.

Easton

BUSINESS IMPROVEMENT AND DEVELOPMENT LOAN PROGRAM (BID)

The Business Improvement and Development (BID) loan program offers financing to assist businesses with property acquisition, building renovations, facade improvement, equipment and fixtures. Financing up to $25,000 for up to 70 percent of project costs is available at an interest rate discounted below prime. Eligible projects must create or retain jobs in accordance with federal requirements. Applications and program information are available through Easton Economic Development Corporation.

EASTON ECONOMIC DEVELOPMENT CORPORATION LOAN POOL (EEDC)

The EEDC Loan Pool is a program that assists and fosters the development, renewal and improvement of business in the City of Easton. Businesses in operation for 12 months or more seeking to locate or expand within the City of Easton and the Enterprise Zone may apply for loans ranging from $50,000 up to $1 million. Creation/retention of employment opportunities, meeting local economic development initiatives and leveraging private investment are among the programs goals. Eligible activities include acquisition, construction, building renovations, machinery and equipment at up to 40 percent of total project cost. Interest rates start at prime, with the potential for discounting based on the level of economic benefit.

ENTERPRISE ZONE REVOLVING LOAN FUND

This loan fund provides low-interest financing to industrial, manufacturing and commercial projects that will create or retain jobs in Eastons Enterprise Zone. Funds may be used for land and building acquisition, building construction and renovation, machinery and equipment, environmental remediation and infrastructure. Loans are available up to 100 percent of project costs with a cap of $30,000.

LOCAL ECONOMIC REVITALIZATION TAX ASSISTANCE (LERTA)

The City of Easton, Easton Area School District and Northampton County offer tax abatement on property improvement and new construction within designated areas in the City of Easton. Under the LERTA program, taxes on improved value are abated for three to five years, allowing for savings on investment in property renovations and construction. Properties in eligible areas may apply for LERTA acceptance when building permits for the improvements are requested.

For more information regarding Easton Area Financing contact EEDC at 610-250-6781.