Governor Wolf: Pennsylvania Industrial Development Authority Infuses Critical Capital in Five Business Expansion Projects
Harrisburg, PA – Governor Tom Wolf announced new low-interest loan approvals on February 5, 2020 through the Pennsylvania Industrial Development Authority (PIDA) to help five business expansions and create new full-time jobs across the commonwealth.
“Access to low-interest capital is critical for small business growth,” said Gov. Wolf. “The commonwealth’s partnership will provide the affordable capital needed to bolster expansion projects and job creation, without the burden of exorbitant interest rates.”
The following loans were approved:
Brookdale Drug and Rehabilitation Center, LLC was approved for a $2 million real estate loan at a 2.75 percent fixed interest rate for fifteen years and a $400,000 machinery and equipment loan at a 2.75 percent fixed interest rate for ten years through Pocono Mountain Industries, Inc. The loans will assist in the acquisition, renovation and fit-out of a 95-acre abandoned resort, turning it into a premier drug and alcohol rehabilitation facility. Brookdale Drug and Rehabilitation Center targets a varied demographic seeking rehabilitation for drug and alcohol dependency. The center will offer substance abuse rehabilitation, physical rehabilitation, social and psychological support services and nutritional education, and will utilize a holistic healing approach for patients.
A&F Holdings, LLC, a paper mill equipment manufacturer, was approved for a $325,000, 15-year loan at a 1.75 percent reset rate to purchase and renovate a 17,240-square-foot building located at 825 Mearns Road in Warminster Township. This acquisition will allow the company to relocate all operations from a leased facility approximately six miles away and will provide the company with more manufacturing space, which is needed to address the company’s rapid growth. The total project cost is $1,310,000, and the company will retain five and create three full-time jobs as a result of this project.
Groff Tractor Holdings, LLC, a distributor of heavy construction, roadbuilding, and recycling equipment, was approved for a $1,091,817, 15-year loan at a 1.75 percent reset rate through the Cumberland Area Economic Development Corporation to expand the company’s 21,000-square-foot facility located at 6779 Carlisle Pike in Silver Spring Township. The renovation will add an additional 4,000 square feet to the shop area, 6,000 square feet of office space, and a substantial paving project to outdoor storage areas. The additional space will allow Groff Tractor to create an additional 12 full-time jobs within the next three years. Once completed, the complex will have the capacity to hold up to 75 full-time employees. The total project cost is $2,183,634.
CCS Building Group, LLC, commercial construction management and general contracting enterprise, was approved for a $1.2 million, 15-year loan at a 1.75 percent reset rate through EDC Finance Corporation to construct a 26,000-square-foot building located at 598 Millwood Road in Pequea Township. The company will move its operations to the new location from its current leased facility on Willow Street. The building will consist of 3,500 square feet of office space and the remaining 22,500 square feet will be used as flex space for warehousing and job prep. The total project cost is $2,600,000 and the company will retain 62 full-time employees.
Custom Container Solutions, LLC, a manufacturer of industrial steel waste containers, was approved for a $2,182,500, 15-year loan at a 1.75 percent reset rate to acquire and renovate a 133,733-square-foot manufacturing facility located at 201 North Industrial Park Drive in Milton Borough. Their new location will become the company’s headquarters and will allow the company to improve production efficiency by implementing modern manufacturing methods. The total project cost is $4,988,000. This funding is part of a larger project coordinated by the Governor’s Action Team which will create 36 and retain 60 full-time jobs, toward which the company has pledged to invest $5.5 million in capital funding.
Last year, PIDA approved $52,906,326 in low interest loans that have resulted in $104,174,333 in private investment and supported the creation and retention of 1,977 full-time jobs. In 2020, $3,367,458 in low interest loans have been approved, resulting in $5,784,608 in private investment and supporting 529 created and retained full-time jobs.
PIDA provides low-interest loans and lines of credit to Pennsylvania businesses that commit to creating and retaining full-time jobs within the commonwealth, as well as for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of certified economic development organizations (CEDOs) that partner with PIDA. PIDA is currently offering interest rates between 2 and 3 percent for applications received by March 31, 2020.
For more information about the Pennsylvania Industrial Development Authority and other DCED initiatives, visit the DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, Twitter, and LinkedIn.