Program Overview
The Pennsylvania Department of Community and Economic Development has launched the Diverse Business Financing Initiative (DBFI) to support and grow qualifying diverse businesses committed to full-time job creation and retention.Small businesses operated by minorities, women, veterans, service-disabled veterans, LGBT individuals, and more qualify for low-interest loans packaged and underwritten by the Bucks County Economic Development Corporation (BCEDC) in partnership with PIDA.
Uses
Land and building acquisitions; building construction and renovation costs; machinery and equipment; working capital
Eligibility
To qualify for loan financing through the DBFI, a business must be PA-based and for-profit with fewer than 100 employees worldwide and be minorities, women, veterans, service-disabled veterans and LGBT individuals. Many business sectors are eligible, including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child day-care, retail and service, export, and computer-related service enterprises.
Funding
The DBFI will provide a maximum loan of $100,000 to finance a portion of total eligible project costs. The BCEDC considers a variety of factors when determining the loan amount, including the proposed use of funds, the amount matched by outside sources, and the anticipated number of full-time jobs created or retained.
Terms
Land and building acquisitions and construction and renovation costs: up to 10 years
Machinery and equipment purchases: up to 7 years
Collateral
Collateral is required based on the asset being financed. Several factors are considered, including mortgages, machinery and equipment, inventory, receivables, blanket lien against business assets, and personal guarantees required by the principal owners. Personal owners are individuals with 20% or more ownership in the operating entity.
Application
The BCEDC packages the loan application contingent on business qualification for the DBFI program. The interest rate and required collateral are to be negotiated between the BCEDC and the borrower.
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