According to the National Association of State Development Agencies, "Pennsylvania has the best-funded business assistance programs in the nation." Helping businesses to expand and relocate in the Keystone State is an objective at every level of Pennsylvania government from the state level to each individual municipality. Many of the Commonwealth's most successful economic-development programs involve low-cost loans.
A surprising fact to consider - ninety-eight percent of the firms located in Montgomery County have fewer than 100 persons on the payrolls…more than half of those firms have fewer than five employees. It is for this reason Pennsylvania pays particular interest to its small business community. Indeed, small business is the driving force in Montgomery County's economy!
At the state level, Administration has created several attractive programs to hold the line on taxes while enhancing community and economic development. In some cases the programs provide outright grants to Pennsylvania's key industries from agricultural processing and advanced technology, to firms involved in environmental clean-up, for the reuse of blighted buildings and industrial sites.
On the Federal level, an important financing source for business expansion is the U.S. Small Business Administration's (SBA) 504 Program. The 504 program works as a partnership with the small-business borrower, the SBA, and a private sector third-party financier. The 504 program offers low-cost, long-term financing for such projects as plant acquisition, construction, renovation and/or expansion. Proceeds may also be used for land and site improvements, the acquisition and installation of machinery and equipment, the interest on any interim financing, and any professional fees --i.e., legal, surveying, engineering, etc., directly attributable to the project.
Businesses considering opening their doors in Montgomery County can be assured of the cooperation from every facet of the public sector. On the local level, some of the county's 62 boroughs and townships have taken the initiative to assist new businesses by establishing economic plans and expediting permit procedures. The county government is equally cooperative and fiscally responsible.
Communities for Opportunity is another notable state program that works to spur economic growth at the local municipal level. The Communities for Opportunity program provides state-funded grants to assist communities to become competitive for business expansion, retention and attraction. Local governments are the primary targets, although redevelopment authorities and housing authorities are also eligible to apply. In addition to attracting business development, Communities of Opportunity grants are available to develop and rehabilitate low-income housing in the target areas.
In 1983, the MCIDC created the Suburban Development Council (SDC), which manages a privately funded loan program also directed toward small companies seeking financial assistance. SDC offers fixed-rate, low-interest loans for the acquisition, renovation and/or expansion of real estate facilities. Under the SDC program a bank and SDC will lend, on a 50-50 basis, up to 80 percent of the first $750,000 in eligible real-estate costs. The applicant's own cash equity covers the balance. Only proprietorships or privately held corporations, or their principals, are eligible. Publicly held corporations may not apply. Complete loan details are available by contacting the MCIDC.