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Governor Rendell Says Interest Rates on Business Loan Programs Reduced

HARRISBURG – Continuing efforts to stave off the effects of the national economic downturn, Governor Edward G. Rendell announced that the Commonwealth has reduced interest rates on three of its key business loan programs to position Pennsylvania for continued economic growth.

“Pennsylvania is feeling the effects of recent events on Wall Street and a stagnant national economy,” said Governor Rendell. “While Pennsylvania is well-positioned to deal with this situation, we must continue to be proactive and provide incentives for businesses to invest, grow and create jobs.”

The Governor said the Pennsylvania Industrial Development Authority voted today to reduce the interest rate on its loans to 3 percent for all future projects. The commonwealth will also set interest rates to 3 percent for projects approved through the Machinery and Equipment Loan Fund and Small Business First loan programs.

Today’s cuts continue the practice of holding rates on these commonwealth loan programs to two points below prime.

The Pennsylvania Industrial Development Authority provides capital for infrastructure acquisition, creation and renovation projects primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.

“While we have fared better than many other states up to this point, recent declines in jobs and revenues flowing into the state show that we cannot stand by and wait for Washington to act,” said the Governor. “Now is the time to invest in our businesses and workers by providing the resources they need to weather this economic downturn.”

Since 2003, PIDA has funded more than 400 projects with more than $385 million in loans, creating more than 9,500 new jobs and retaining more than 35,000 existing positions.

For information on any of the above programs and others administered through the Department of Community and Economic Development, visit www.NewPA.com or call 1-866-466-3972.

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