Corbett Administration Reduces DCED Interest Rates to Spark Economic Growth and Job Creation
To address a key recommendation of the Governor’s Manufacturing Advisory Council (GMAC) the Department of Community and Economic Development (DCED) announced that it has reduced the interest rates of five business loan programs to encourage new economic growth and job creation.
Governor Tom Corbett’s pro-growth policies are leading to resurgence in manufacturing in Pennsylvania, DCED Secretary C. Alan Walker said. This new initiative makes a bold statement that Pennsylvania is committed to growing our businesses, promoting job creation, and improving the economic base of our communities.”
In December, DCED lowered the interest rates for the Machinery and Equipment Loan Fund, the Small Business First Program, the Pollution Prevention Assistance Program and the Export Financing Program from 2.75 percent to 1.50 percent. Additionally, the Pennsylvania Industrial Development Authority (PIDA) approved lowering its interest rates to 1.50 percent.
PIDA and DCED will also waive its fees charged to the borrowers. The new rates will initially be in place for applications received through March 31, 2013.
The GMAC report sent to Gov. Corbett and the General Assembly in August outlined 15 key recommendations, including the need to improve access to capital. The council identified that 45 percent of small manufacturers accessed debt capital in 2010 and that 78 percent of small manufacturers are negatively affected by a lack of access to capital.
Access to capital is a critical component of any successful manufacturer, Walker said. By reducing interest rates and the cost of borrowing, we are encouraging new growth through providing critical access to capital and freeing up operating cash to support new job creation. For the complete article click here.