Business Finance Center
NEPA Loan Program Process and Features
The NEPA Business Finance Center, through its pool of federal, state, and local funds, provides low-interest loans to qualified small businesses and micro loans to start-up new to market businesses and entrepreneurs. The rates are fixed throughout the term of the loan regardless of any upward movement in the prime rate. The rates for the micro loan programs are market competitive.
General Purpose of All NEPA Programs
The purpose of the NEPA Loan Program is to finance business facilities in the seven county region served by the Northeastern Pennsylvania Alliance (NEPA) in order to create or retain jobs. NEPA provides low-interest loan financing for a portion of the costs of land, building, machinery and equipment to businesses unable to fully finance these projects with equity, bank financing, or other private and public sources.
General Loan Program Procedures
The loan application is reviewed by NEPA staff and presented to the NEPA Revolving Loan Fund Committee for their consideration. For SBF loans, PA-DCED has final approval. For First Industries loans, The Commonwealth’s Finance Authority, retains final approval.
After the RLF funds have been approved and terms and conditions signed, NEPA’s attorney begins the preparation of the loan closing documents while working with the borrower’s legal counsel.
Loan servicing is done by the NEPA.
Loan Program Features
- Low Interest Rates – NEPA’s interest rate for most programs are below the prime lending rate.
- Low Down Payment – Reduced down payments to make additional working capital available for the customer.
- NEPA’s interest rate is fixed throughout the loan term.
- NEPA can assist businesses in completing necessary paper work and applications