Other Loan Programs » Machinery and Equipment Loan Fund (MELF)

The Chester County Economic Development Council (CCEDC) will be pleased to assist you in an application for a MELF (Machinery & Equipment Loan Fund) Loan. CCEDC is the designated provider in Chester County to make this low interest financing program available to eligible businesses.

Eligible Applicants

  • Manufacturing & Industrial Enterprises
  • Mining
  • Production Agriculture
  • Information Technology
  • Biotechnology
  • Medical facilities

Eligible Uses

Acquire and install machinery & equipment

Acquire livestock (agriculture)

Loan Amount

$5,000,000 or 50% of the total project cost, whichever is less

Terms

Term of the Loan matches life of asset:

Up to 10 years for machinery and equipment

Rate

Please contact us for the most current rate.

Agricultural producers located in Agricultural Security Areas are eligible for a 1% rate reduction.

Private Financing

Private sector match required Term must be the same as MELF loan or longer. Line of credit cannot be used as a private sector match.

Collateral

Loans are to be secured by lien positions on collateral at the highest level of priority which can accommodate the borrower's ability to raise sufficient debt and equity capital. Personal guarantees from principals and spouses (20% or more ownership) of the company will be required except under unusual circumstances.

Job Creation Criteria

Except loans to agricultural producers and medical facilities, for each $25,000 of loan proceeds, at least one full-time job must be created or retained at the project site within three year after the MELF loan has closed.

Timing

Loan review and approval approximately 6-8 weeks after a complete application is submitted to the Department of Community & Economic Development.

MELF Loan Fees

The State charges a 1% non-refundable commitment fee of the approved loan amount.

CCEDC may charge a fee for assistance in application and approval process to be negotiated on a case-by-case basis.

Application Procedure

  • Applicant meets with staff or discusses via telephone the proposed project and establishes potential eligibility.
  • Applicant compiles requested documentation and forms.
  • Complete application is submitted either to CCEDC staff for review or directly to DCEDC.

NOTE: Commencement of project prior to State approval will cause your project to be INELIGIBLE for MELF financing unless a "Non-Prejudicial" letter is requested by the Applicant.

For more information, contact Chuck Evans, Director of Loan Programs, at 610.458.5700 x242 or cevans@cceconomicdevelopment.com

For agricultural projects, please contact Sue Milshaw, Ag Loan Coordinator, at 610.458.5700 x239 or smilshaw@cceconomicdevelopment.com

"Serving Pennsylvania's Business, Industry, and Agriculture, Today and Tomorrow"