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 investments typically range from $10,000 to $100,000 per year for up to three years. Financial support of established manufacturers is usually technology development or application, accomplished with a university and co-funded by the company. Royalty paybacks on BFTP/NEP investments are sometimes required of early stage companies when a company has successfully commercialized a new product through Ben Franklin assistance.

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 northeastern center is located on the campus of Lehigh University and at regional offices in Wilkes-Barre and West Milton, and operates a technology incubator on Lehigh's Mountaintop Campus. For more information about BFTP/NEP, call 610-758-5200; visit http://www.nep.benfranklin.org/; 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.

LEHIGH AND NORTHAMPTON COUNTIES REVOLVING LOAN FUND (RLF)

RLF was created to provide below-prime-rate fixed financing for small businesses in the Lehigh Valley who have been turned down by other lending institutions. The money can be used for land, buildings, renovations, equipment, machinery and working capital. Loan amounts range from $10,000 to $50,000 or 30 percent of the total project cost, whichever is less. The interest rate is half of Wall Street Journal prime plus 1.5% . Once the RLF funding is approved, other financing services must be found that will fund the remainder of the project cost. On most projects, 10 percent equity is required.

LEHIGH COUNTY AND NORTHAMPTON COUNTY INDUSTRIAL DEVELOPMENT AUTHORITY (LCIDA/NCIDA)

LCIDA and NCIDA serve as issuers of tax-exempt bonds or mortgages for land and building acquisition, construction, renovation, new machinery and equipment. Total capital expenditure cannot exceed $10 million, and the interest rate can be 70 percent to 80 percent of prime floating. Eligible businesses include manufacturers, certain 501 (c) 3 organizations, and exempt facilities, i.e. solid waste disposal.

LEHIGH VALLEY SMALL BUSINESS LOAN POOL

This loan fund helps start-up and small firms that are unable to obtain financing through normal banking channels. Loan amounts range from $25,000 ($5,000 for minority and disabled-owned-and-operated businesses) up to $100,000 and are available in several categories:

Start-up businesses located in Lehigh and Northampton Counties
Existing businesses located in Lehigh and Northampton Counties
Facade/code improvement for commercial properties with appearance problems or code violations
Rehabilitation/code improvement for one- to four-unit residential properties in targeted geographic areas. Loans are available to investors only.

Precipice loan fund, available in Northampton County only, for emerging technology and growth companies needing short-term working capital to exploit immediate market opportunities.

MID-ATLANTIC VENTURE FUNDS (MAVF)

MAVF is a quartet of private venture capital partnerships headquartered in Bethlehem totaling approximately $200 million, and. The funds provide equity capital, primarily to new and early-state, technology-oriented growth companies, in private placements ranging from $250,000 to $10 million in size. They invest across a broad spectrum of industries, with a few exceptions being biotechnology, retail and natural resources. The terms of each investment are individually negotiated. The funds do, however, avoid taking a controlling interest in their ventures in all but the most unusual circumstances.

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.

SBA 504 LOAN PROGRAM

The Lehigh Valley Economic Development Corporation is a Certified Development Corporation under the Small Business Administration licensed to provide Section 504 financing to eligible businesses. The purpose of the program is to assist expanding businesses to create or retain jobs. These loans provide second mortgage fixed-asset financing for expanding businesses in participation with bank first mortgages or other approved loan sources. Benefits include lower equity requirement and longer repayment term than generally available from conventional sources. Funds may be used for land and building acquisition, construction or renovation, and major machinery and equipment plus financing fees and project soft costs. Loan amounts range from $50,000 to $750,000. Loan rates are negotiated basis points above five-year and 10-year U.S. Treasury issues. Interest rate is fixed at date of debenture sale for the term of the loan.

For more information regarding specific regional financing contact LVEDC at 610-266-6775.