Rural Development Loans
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 include most operating-for-profit businesses except hotels, motels, tourist homes, convention centers or any other tourist or recreation center.
Businesses NOT eligible are charitable and educational institutions, fraternal organizations, churches, and organizations affiliated or sponsored by churches, businesses producing agricultural products and media businesses such as television and newspaper.
Maximum Loan Amount.Up to 50% of the eligible project cost, not to exceed $150,000.
Interest Rate.The interest rate on this loan program is below the market rate. The current interest rate is a fixed rate of 4% over the life of the loan.
Repayment Schedule. Real Estate loans are amortized up to 15 years with a 7.5 year term. Machinery and equipment loans are amortized up to 7 years with a 3.5 year term.
Use of Loan Proceeds. Loan proceeds may be applied to land and building acquisition and building construction, machinery and equipment.
Loan Program Requirements.
Location - The business must be located within one of the following counties, Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne. The business may NOT be located within the boundary of any city having a population of 25,000 or more.
Job Requirements - One permanent job must be created per $25,000 NEPA dollars loaned.