NEPA Rural Development Microloan
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
Eligible businesses including entrepreneurs, business start-ups and existing small businesses with less than 25 employees in areas with a population of less than 5,000..
Maximum Loan Amount.$10,000 to $20,000. No Loan will exceed $20,000. NEPA funds will not exceed 90% of project costs.
Interest Rate.The current interest rate on this loan program is4%. Rates are fixed from loan approval until the loan is repaid.
Repayment Schedule--The repayment duration for machinery and equipment is three to five years, working capital is two to three years and land and building is five years
Loan Program Requirements.
Business Plan - All applicants are required to submit a fully completed and documented Business Plan with any loan application. Small Business Development Centers at the University of Scranton/Wilkes University are available to assist in the development of a business plan at no cost to the individual business.
Other Criteria. Borrowers are required to establish/retain one new job for every $15, 000 in loan assistance in business start-up situations; self-employment is included with this job requirement.
Location - The project must be located within the seven Pennsylvania counties of Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne. It is available to entrepreneurs, small businesses and existing small businesses with less thatn 25 employees located in the Rural Development eligible areas with less than 5,000 in population.