First Industries Tourism
NEPA will administer the loan section of this program for the seven county Northeastern Pennsylvania Region. The loan eligibility requirements for this program are outlined as follows:
Type of Business
Tourism-related businesses. Tourism is defined as an activity which promotes or encourages individuals to travel to a location within this Commonwealth for pleasure. For purposes of the program, tourism-related projects include all of, but not limited to the following:
- Destination sites located in Pennsylvania, including but not limited to historic, heritage, cultural, sporting, amusement, nature, outdoor recreational or retail venues.
- Hospitality establishments, including lodging and restaurants, retail establishments and outdoor activity-based businesses in close geographic proximity to a Pennsylvania destination site or part of the marketing effort that targets a Pennsylvania destination site.
- Businesses that develop and market travel packages for the purpose of bringing out of state visitors into Pennsylvania to enjoy attractions and stay in overnight, paid accommodations.
- Public/private partnerships formed to enhance or optimize the use of Commonwealth owned resources such as state-owned parks and state game lands.
- Tourism-related activities or events that promote overnight visits in Pennsylvania.
- Other projects or activities as determined by the Commonwealth Financing Authority (CFA).
For profit businesses engaged in tourism-related activities are eligible for loans under the Small Business First Program.
Maximum Loan Amount. $200,000 or 50% of the total eligible cost, whichever is less for land, building, machinery and equipment. The maximum working capital loan is $100,000 or 50% of the total eligible cost.
Use of Loan Proceeds. Loan proceeds may be applied to real estate, machinery and equipment or working capital.
Interest Rate.The interest rate on this loan program is 4%. Rates are fixed for the life of the loan.
Repayment Schedule- The repayment duration for real estate is up to 15 years, machinery and equipment is up to 10 years and working capital is up to 3 years.
Loan Program Requirements.
Job Creation - One full time job must be created or preserved within three years from completion of the project for each $25,000 in SBF loan proceeds. Eligible businesses must have 100 or less employees. Other pre-qualifying employment criteria may apply.
Location - The project must be located within the seven Pennsylvania counties of Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne.
Bank Financing - The project financing plan must include bank funds.