Economic Development Incentives
The FCADC packages and delivers a wide array of economic development incentives designed to enhance the economic well-being of our area. Since 1986, the FCADC has delivered hundreds of millions of dollars of incentives to County employers, resulting in the creation of over 15,000 jobs and the retention of more than 25,000.
In addition to our convenient location, ample development opportunities, superior workforce, and unparalleled quality-of-life, by choosing to locate in Franklin County businesses can gain access to a myriad of incentive programs designed to support successful business growth. Some of the more widely used programs include:
State Loan & Grant Programs
Small Business First Fund (SBFF)
Provides fixed rate, low-interest loan financing to small businesses (100 employees or less) for land and building acquisition, construction, machinery and equipment purchases or upgrades, and working capital. The maximum loan amount is $200,000.
First Industries Fund (FIF)
This program provides low interest loan financing to agriculture and tourism based businesses for land and building acquisition/construction, machinery and equipment purchases, and working capital. The maximum loan amount is $200,000. The low interest rate is fixed for the term of the loan. The maximum loan amount for working capital is $100,000. There are no job requirements for the FIF loan program.
Pennsylvania Industrial Development Authority (PIDA)
Provides direct low-interest loans that assist with the purchase and/or construction of real estate. A PIDA loan can typically finance up to 60% (or $2,000,000, whichever is less) of a total project cost.
Pennsylvania Economic Development Financing Authority (PEDFA)
PEDFA is an issuer of tax-exempt and taxable industrial revenue bonds on behalf of for-profit and non-profit businesses and municipalities. The bonds are issued for projects of $400,000 or more. Borrowers of PEDFA financing must provide a credit enhancement, which generally involves a letter-of-credit in the amount of the bond. Since the program’s inception in 1989, weekly tax-exempt variable rates have averaged 46% of the prime rate.
Machinery & Equipment Loan Fund (MELF)
The MELF program provides low interest financing for machinery & equipment acquisition, upgrading, related engineering, and installation costs. Loans up to $5,000,000 or 50% of the total eligible project costs, whichever is less. Up to 10 year term, depending upon the useful life of the machinery being financed; $25,000 cost per job retained or created; Project must be directly related to the business process.
The Pennsylvania First program was established in 2011 as a comprehensive funding tool to facilitate increased investment and job creation in the Commonwealth and to enable the Commonwealth to compete more effectively in the global economy. Eligible uses of funds include the acquisition of real estate, job training, facility construction and/or renovation, machinery & equipment, and project site preparation.
Local Loan Program
Franklin County First Fund (FCFF)
A low-interest loan program that is funded and administered by the FCADC and is targeted toward small businesses throughout Franklin County. Qualifying businesses must be for-profit and have 100 or fewer employees. An FCFF loan can finance up to 50% of a total project cost…not to exceed $75,000.
FCFF Loan Guaranty Program
The FCFF is a loan guaranty program administered by the FCADC and is targeted toward small business throughout Franklin County. Qualifying businesses must be for-proft and have 100 or fewer employees. An FCFF loan guaranty can support 50% of a commercial lender’s risk (up to maximum of $75,000). Applicants apply through their commercial lender of choice. The interest rate on the loan is determined by the lender.
For a complete listing of potential economic development incentive programs, please visit www.newpa.com
Note: Certain programs are subject to funding availability, approval, and job creation requirements. All programs require an application process to be completed in order to access funds.