UWCHLAN TOWNSHIP — There are still funds available through the Pennsylvania Catalyst Loan Fund to help businesses get their projects funded.
The Chester County Economic Development Council — which is administering the state-funded program — is urging businesses to apply for the opportunity to obtain a fixed interest rate of 5.5% through the program, before all of the funding is allocated.
At the end of February, the economic development council reported that about $1.4 million of the fund’s original $20 million was still available, according to a press release.
“… we want to be sure that businesses of all sizes have an opportunity to get their projects funded and take advantage of these very attractive rates,” Mike Grigalonis, president and COO, Chester County Economic Development Council, said in a statement.
The Pennsylvania Catalyst Loan Fund was launched in September 2022 to serve nine counties across southeastern and central Pennsylvania — including Berks, Bucks, Chester, Cumberland, Dauphin, Delaware, Lebanon, Montgomery and Perry counties. It offers small balance loans to nontraditional borrowers who otherwise may not have access to loan funds.
The program offers loans that typically range from $50,000 to $500,000. However, in some cases the loans can go higher across a range of industries and business sizes, according to Chris McHenry, vice president of development finance for the Chester County Economic Development Council.
Businesses are encouraged to complete the loan application as soon as possible since funds are limited, the economic development council said. Pennsylvania Catalyst Loans require a match with a partner lender, with borrowers providing equity up to 20%. Loan terms are up to five years.
So far, funds have been used for working capital, inventory, workforce development, equipment and more. A return on that investment can take many months, and a Pennsylvania Catalyst Loan can help bridge the gap. Working capital funds can also be spent on items like vehicle upgrades, advertising, building supplies and renovations, according to the release.
For questions and assistance, businesses should contact the appropriate county’s certified economic development organization.
