Local financial programs may be available for new, expanding, or renovating businesses within the City limits. Contact the City of Allentown’s Business Development Department to help identify and customize a financial package for your business. The combination of public funds might help improve cash flow, provide loans to small businesses, or offer lower equity requirements.
Vendetta Hines, PMBDA Loan Recipient, stands outside the former manufacturing facility in South Allentown that she purchased to operate her business. (Source: Stay Calm Industries)
- Allentown Economic Development Loan Fund – The City of Allentown offers competitive low interest rate flexible loans to commercial, industrial, and mixed-use properties located within Allentown proper. Loan funds range from $50,000 to $100,000 depending on the size of the project and the financial health of the prospective borrower. In order to apply, a project budget must be minimally $100,000; job creation and/or retention must occur; and 10% equity investment is required. All other sources of funding must be identified, and the prospect must be actively seeking other funding or capital investment. We encourage prospects to work with an economic development professional to help leverage your investment with other public funding programs for job creation projects. For additional information, click here.
- City of Allentown Loan Funds – Allentown Economic Development Corporation (AEDC), working with the City, provides economic development lending assistance, to qualified borrowers, through two local funds.
- Allentown Enterprise Zone Loan Fund – Businesses, including sole proprietors, locating or planning to locate within the Enterprise Zone, are eligible to apply for up to $100,000 loans for equipment, real estate purchases/improvements, and in special cases, up to 40% of inventory or working capital. AEDC will competitively finance up to 75% of eligible project costs for terms ranging from one to 10 years, depending on the life of the asset financed. Rates can be fixed for the term of the loan. Loan collateralization is required. Job creation and retention is an essential component of this loan fund. For additional information, click here.
- Allentown Revolving Loan Fund – Businesses, including sole proprietors, located anywhere within Allentown proper, are eligible to apply for up to $100,000 loans for equipment, real estate purchases/improvements, and in special cases, up to 40% of inventory or working capital. AEDC will competitively finance up to 75% of eligible project costs for terms ranging from one to 10 years, depending on the life of the asset financed. Rates can be fixed for the term of the loan. Loan collateralization is required. Job creation and retention is an essential component of this loan fund. For additional information, click here.
- Pennsylvania Minority Business Development Authority – Loan funds are available for minority owned businesses (51% or more) defined by the program guidelines as being socially or economically disadvantaged. Loans amounts range from up to 90% of eligible project costs or $250,000, whichever is less. Eligible uses include real estate purchases/improvements, construction, machinery/equipment purchases, and working capital. Loan terms can extend up to 15 years for real estate and up to 10 years for machinery and equipment. Job creation and retention are essential components of this program. Collateral may include a requirement for a 1st of 2nd lien (shared) position. Terms and conditions vary based on credit worthiness of applicant. This program serves the entire Lehigh Valley.
- Allentown Development Company Loan Program (“ADCO”) – Loans ranging from $50,000 to $100,000 may be available to eligible Allentown businesses for land acquisition, construction, equipment or working capital. Loan candidates must meet the following criteria: (1) creating or improving job opportunities for low and moderate-income people in economically distressed areas; or (2) projects for the construction or rehabilitation of ancillary local commercial facilities necessary to provide goods or services principally to persons residing in low or moderate-income areas. Fixed rates and flexible terms are available depending on the type of financing requested. For additional information, click here.
- Pennsylvania Industrial Development Authority (PIDA) – Fixed rate low interest loans are now available for growing Lehigh Valley businesses. The loan program supports land and building acquisitions, construction and renovations costs, and machinery and equipment acquisitions. Loan amounts vary depending on the type of purchase. A requirement of the program is job-creation, and the number of jobs required depends on the industry. This program is administered by the Lehigh Valley Economic Development Corporation. For additional information, click here.
- Rising Tide Community Loan Fund – Rising Tide was created to meet a need in the community for accessible financing options to business owners whose risk factors make it difficult to obtain funds from traditional lenders. RTCLF serves prospective, start-up, and established businesses in Lehigh and Northampton counties by providing a full range of one-to-one business counseling and micro-loans to business owners where resources and opportunities for growth are limited. For additional information, click here.
- Retail Mosaic – The Retail Mosaic is self-forgiving loan program that supports new retail business growth in Allentown. The Retail Mosaic will provide a financial award of up to $15,000 with the requirements that the business create a minimum of two low-moderate income jobs over the next three years. Businesses must remain in the City of Allentown for five years after receiving the loan. For additional information, contact the Business Development Office.
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