The Pennsylvania State Small Business Credit Initiative (SSBCI) was established under the American Rescue Plan Act of 2021 to help small businesses access capital in response to the economic impact of COVID-19. The U.S. Department of the Treasury administers the program, but local economic development partners in Pennsylvania are implementing and administering the $246.8 million in funding via loan and equity programs.
EDC Finance Corporation has received $5.1 million to establish a revolving loan fund for small businesses in Lancaster and Adams Counties. The program allows EDC Finance to engage with companies and provide smaller loans that don't typically fit their existing financing programs. Loans can be used for building construction, equipment acquisition, working capital, and more. Borrowers must be for-profit businesses or farms with less than 500 employees. A percentage of funding is allocated to Very Small Businesses (fewer than ten employees) and businesses owned/operated by socially and economically disadvantaged individuals (i.e., women, minorities, veterans). The loan structure involves a commercial bank providing 50% of project costs, EDC Finance providing up to 50%, and the borrower providing a minimum 10% equity injection. Loan fees and interest rates will vary.
Learn more about the SSBCI program.
