Local Small Business to Get Financial Aid
INVESTMENTS AND LOANS
Local small businesses to get aid
Funding through state program to soon be available via 3 economic partners
LISA SCHEID
Lancaster County businesses, through three local economic development partners, will be able to access a portion of the $246.8 million in American Rescue Plan Act funding that was used to reauthorize and fund the Pennsylvania State Small Business Credit Initiative.
The recently announced funding will enable EDC Finance Corp., Ben Frank-lin Technology Partner-ship and Community First Foundation to make direct equity investments and loans to small businesses.
DCED is responsible for distributing the funds to eligible economic development partners through the Pennsylvania State Small Business Credit Initiative's Direct Venture Investment or Revolving Loan Fund programs. The economic development partners will then administer the funding to qualifying small businesses, which will be able to apply starting Oct. 17.
Here are the economic development partners that will receive and administer the funds: ? Ben Franklin Technology Partners Central and Northern PA: $19,678,479.
? EDC Finance Corp.: $5,071,000.
? Pennsylvania CDFI Network (which includes Community First Fund): $45,000,000.
Spreading the benefits
Each organization has a different focus, which means different kinds of businesses may benefit.
The EDC Finance Corp, which was founded by the Economic Development Company of Lancaster County, was awarded $5.07 million through the Revolving Loan Fund. The program provides funding to economic development organizations to create or recapitalize revolving loan funds to support financing for Pennsylvania small businesses.
Lisa Riggs, president of the Economic Development Company of Lancaster County, said the $5 million essentially expands the money available for loans to local small businesses. The way the program is structured allows the money to remain in the community. She added the money is being dispersed in installments.
EDC Finance Corp. is a community-based, private, not-for-profit organization founded in 1987 to provide Lancaster County businesses access to state and local economic development incentive financing resources.
Riggs said the organization is awaiting details on how to administer the funds. Details will be posted on the organization's website, edclancaster.com.
Community First Fund will receive a portion of $45 million awarded to Pennsylvania CDFI Network through the Revolving Loan Fund. Pennsylvania CDFI Network is a coalition of 17 state-based community development financial institutions that primarily provide financing options for small businesses. In addition to Lancaster, Community First serves Adams, Berks, Chester, Cumber-land, Dauphin, Delaware, Franklin, Lebanon, Lehigh, Montgomery, Northampton, Perry, Philadelphia and York counties. Ben Franklin Technology Partners is receiving $19.67 million through the Direct Venture Investment, which provides seed and later-stage capital for existing and emerging companies involved in the development and commercialization of technologically advanced products and processes.
John Sider, Ben Franklin vice president of business development, said its focus is on venture capital. It will augment and amplify the support the organization can give to emerging technology businesses.
"We are looking to identify high-growth potential companies, including those in Lancaster where we have portfolio companies," he said.
He said the funding will enable Ben Franklin to be a larger, local participant in venture funding rounds for fast-growing, high-tech companies ensuring that the funding is done locally.
The money will also be used to augment co-investment partnerships with foundations in underserved communities to access capital. To learn more, go to cnp. benfranklin.org.