State Loan Program
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
Eligible Uses Acquire and install machinery & equipment Loan Amount $5,000,000 or 50% of the total project cost, whichever is less Terms Term of the Loan matches life of asset: 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
Application Procedure
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 PIDA Low-interest loan financing through Industrial Development Corporations for land and building acquisition, construction and renovation, resulting in the creation or retention of jobs. Eligibility: Manufacturing; Industrial; Research and Development; Agricultural processors; Firms establishing a national or regional headquarters; Computer/clerical operation centers Uses: Land and building acquisition; Building construction and renovation; Industrial park development; Multi-tenant spec building construction, acquisition and renovation Amounts: Loans up to $2 million (within Enterprise Zones, Act 47 Industrial Communities, Brownfield Sites, and Keystone Opportunity Zones, $2.25 million); No more than 30% to 70% of total eligible project costs, based on firm size and unemployment rate. Terms: 3% interest rate (Rates subject to change; contact PIDA for current rates); Up to 15-year term on land and buildings; No less than a second mortgage on financed assets; Disbursement to applicant based upon reimbursable expenses; $35,000 cost per job created or retained (no cost per job requirement on industrial park or multi-tenant projects.) Guidelines Type of Business
Size of Business
Location
Type of Funding
Purpose of Funding
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Rate Information
10 - Year 3.83%
20 - Year 4.75%
Re-Fi - 4.79%
10 - Year 3.83%
20 - Year 4.75%
Re-Fi - 4.79%
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