NORTHEASTERN PENNSYLVANIA ALLIANCE RURAL DEVELOPMENT MICROLOAN

The loan eligibility requirements for this program are outlined as follows:

Type of Business. Entrepreneurs, business start-ups and existing small businesses with less than 25 employees in areas with a population of less than 5,000.

Loan Range. $10,000-$20,000 range. No loan will exceed $20,000. NEPA funds will not exceed 90% of project costs.

Use of Loan Proceeds. Loan proceeds may be applied to the purchase of machinery and equipment (new or used) as well as associated delivery and installation costs. Proceeds may also be used as working capital or for construction, renovation and acquisition of real property.

Loan Program Features

Interest Rate - The interest rate on this loan program is 8.75%. Rates are fixed from loan approval until the loan is repaid.

Repayment Terms -The repayment duration for machinery and equipment is three to five years, working capital two to three years and construction / renovation / acquisition is 5 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.

Location - The project must be located within the seven Pennsylvania counties of Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne.

Job Requirements - 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.

Other Criteria. Collateral and personal guarantees as well as assignment of Life Insurance are required.

Fees. 1% commitment fee and legal costs.

Program Contacts

John Wozniak
jwozniak@nepa-alliance.org