Financing Programs
| Tom Seasoltz | toms@abcdcorp.org |
| Renae Lynn | renael@abcdcorp.org |
| Marcus Edwards | marcuse@abcdcorp.org |
Enterprise Zone
NAP – Enterprise Zone Tax Credit Program
Community Maps: (Note: All non-residential zones within the municipalities are part of the approved Enterprise Zone)
Basics:
– Eligible applicants are private, for-profit companies
– Project must be located within the defined Enterprise Zone
– Maximum tax credit award is equal to 25% of qualified investment, up to $500,000 per project
– Qualified investment includes rehab/expansion, improvements to buildings, improvements to land, engineering, architectural and acquisition costs
– Investment window typically runs from July 1 of the program year through Sept 30 of the following year (15 months)
– Application window is typically April through May
– Project audit is required to close out and receive tax credit proceeds
Tax Credit Awards
– Tax credit awards may be used by the awardee to offset certain state taxes including but not limited to:
– Personal Income Tax
– Corporate Net Income Tax
– Capital Stock-Foreign Franchise Tax
– Bank Shares Tax and more
– The applicant awarded EZ Tax Credits may also opt to exercise three other options for use of the credits:
– Carry Forward
– Sell for cash or assign (cash proceeds typically range from 80-90% of the credit amount)
– Pass through to another eligible entity
- (Neither DCED nor ABCD Corporation provides tax advice. Applicants should consult their respective accountants or tax advisors for specific tax related questions.)
Enterprise Zone
NAP – Enterprise Zone Tax Credit Program
Community Maps: (Note: All non-residential zones within the municipalities are part of the approved Enterprise Zone)
Basics:
– Eligible applicants are private, for-profit companies
– Project must be located within the defined Enterprise Zone
– Maximum tax credit award is equal to 25% of qualified investment, up to $500,000 per project
– Qualified investment includes rehab/expansion, improvements to buildings, improvements to land, engineering, architectural and acquisition costs
– Investment window typically runs from July 1 of the program year through Sept 30 of the following year (15 months)
– Application window is typically April through May
– Project audit is required to close out and receive tax credit proceeds
Tax Credit Awards
– Tax credit awards may be used by the awardee to offset certain state taxes including but not limited to:
– Personal Income Tax
– Corporate Net Income Tax
– Capital Stock-Foreign Franchise Tax
– Bank Shares Tax and more
– The applicant awarded EZ Tax Credits may also opt to exercise three other options for use of the credits:
– Carry Forward
– Sell for cash or assign (cash proceeds typically range from 80-90% of the credit amount)
– Pass through to another eligible entity
- (Neither DCED nor ABCD Corporation provides tax advice. Applicants should consult their respective accountants or tax advisors for specific tax related questions.)
Blair County Micro-Loan
The First Frontier Blair County Micro-Loan Program was created in December of 2018 to meet the needs of small businesses and entrepreneurs that are vital to our local, regional and global economies. The initial funding was through the Blair County Commissioners with an additional contribution in June of 2020 from the Norfolk Southern Foundation. Details on the program are below, please contact our First Frontier Financing Team via email by clicking one of our team members name’s; Tom Seasoltz, Renae Lynn or Marcus Edwards or call 814-944-6113 to get started.
Blair County Micro-Loan Parameters:
| Loan Amounts: | $5,000 to $20,000 |
| Job Requirements: | 1 job created or retained per loan |
| Eligible Uses: | Real Estate / Renovations Equipment Working Capital |
| Interest Rates: | Prime – 750+ Prime + 1 – 661-749 Prime + 2 – 600-660 |
| Terms: | Working Capital – 0-3 Years Equipment – 0-5 Years Real Estate – 0-7 Years |
| Collateral Required : | Personal Guarantee Highest lien position/mortgage available |
| Fees: | $100 Application Fee $100 Closing + Filing Fees |
| Documents: | Blair County Micro-Loan Framework (pdf) Blair County Micro-Loan Application (pdf) |
RMAP Micro Loan
The Blair County Rural Microentrepreneur Assistance Program (RMAP) Loan provides a pool of below market funds available to existing and new micro-businesses (less than 10 employees) in Blair County communities. Details on the program are below, please contact our First Frontier Financing Team via email by clicking one of our team members name’s; Tom Seasoltz, Renae Lynn or Marcus Edwards or call 814-944-6113 to get started.
Blair County Micro-Loan Parameters:
| Loan Amounts: | up to $50,000 |
| Job Requirements: | 1 job created or retained for every $25,000 borrowed |
| Eligible Uses: | Real Estate (no new construction or renovations) Furniture, Fixtures, Equipment, Supplies & Inventory Working Capital |
| Interest Rates: | Fixed at 4.5% for the life of the loan |
| Terms: | Working Capital – 0-3 Years Equipment – 0-5 Years Real Estate – 0-10 Years |
| Collateral Required : | Personal Guarantee Highest lien position/mortgage available |
| Fees: | $100 Application Fee 1% of Loan Amount Commitment Fee Closing and Filing Fees |
Tyrone Micro-Loan/Grant
The Tyrone Borough Micro-Loan & Grant Program was created in July of 2020 to meet the needs of small for-profit and non-profit businesses located within the Borough of Tyrone. The initial funding was made possible through the Tyrone Borough Council.
Details on the program are below, please contact our First Frontier Financing Team via email by clicking one of our team members name’s; Tom Seasoltz, Renae Lynn or Marcus Edwards or call 814-944-6113 to get started.
Tyrone Micro-Loan Parameters:
| Eligible Borrowers: | Any for-profit or non-profit business located in the Borough of Tyrone |
| Loan Amounts: | $5,000 to $20,000 |
| Job Requirements: | 1 job created or retained per loan |
| Match: | None |
| Eligible Uses: | Real Estate / Renovations Equipment Working Capital |
| Interest Rates: | 2.00% – 750+ 3.00% – 661-749 4.00% – 600-660 |
| Terms: | Working Capital – 0-3 Years Equipment – 0-5 Years Real Estate – 0-7 Years |
| Collateral Required : | Personal Guarantee Highest lien position/mortgage available |
| Fees: | $100 Application Fee $100 Closing + Filing Fees |
| Documents: | Tyrone Micro-Loan Framework (pdf) Tyrone Micro-Loan Application (pdf) |
Tyrone Micro-Grant:
PROGRAM CLOSED: Please note that as of August 28, 2020 the program funding for the grant portion has been exhausted.
First Frontier 504
Visit www.FirstFrontier504.com
CURRENT SBA504 RATES:
25 Year FIXED rate as low as 2.696%
20 Year FIXED rate as low as 2.658%
10 year FIXED rate as low as 2.450%
Eligible Applicants & Uses:
- Business Entity Classified as Small Business
- For-Profit Corp., Partnership, LP, LLC or Proprietorship
- Land Acquisition
- Building Construction & Renovations
- Building Purchase
- Leasehold Improvements
- Equipment
Business Benefits:
- Low Down Payment – lets you preserve your cash for your working capital.
Competitive Interest Rate – typically below bank rates. - Fixed Interest Rate – for the life of the loan of either 10 or 20 years.
- Additional Program Benefits: Available for women, veteran and minority-owned companies, export related companies, green buildings and businesses in rural communities.
Bank Benefits:
- Increase your loan portfolio’s profit while reducing risk.
- Make larger loans beyond current 7a limits.
- ABCD Corp. handles all SBA application processing, approval and loan servicing.
Contact your First Frontier 504 expert Marcus Edwards today!!!
PIDA Loan
Pennsylvania Industrial Development Authority (PIDA) Loans provide fixed, low-interest financing for land and building acquisition, machinery and equipment, working capital and energy-efficient projects. There are many different ways to utilize PIDA loans, please please contact our First Frontier Financing Team members, Tom Seasoltz, Renae Lynn or Marcus Edwards to discuss the specifics of your project.
PIDA Loan Parameters:
| Loan Amounts: | Land and Building: up to $2,250,000 or 50% of the total eligible costs, whichever is less Machinery and Equipment: up to $400,000 or 50% of the total eligible costs, whichever is less Working Capital: Up to $350,000 Pollution Prevention and Energy Efficiency: Up to $100,000 or 75% of the total eligible costs, whichever is less |
| Job Requirements: | 1 job created for every $50,000 borrowed 1 job retained for every $35,000 borrowed |
| Eligible Uses: | Land and Building Acquisition Construction and Renovation Machinery and Equipment Working Capital Pollution Prevention and Energy Efficiency |
| Interest Rates: | APR Fixed for Life of Loan (contact for current rates) |
| Terms: | Working Capital – 1 Year Equipment – 0-10 Years Real Estate – 0-15 Years |
| Collateral Required : | Personal Guarantee Highest lien position/mortgage available |
| Fees: | $100 Application Fee 1% of Loan Amount Commitment Fee Closing and Filing Fees |
IRP
USDA Intermediary Relending Program (IRP) Loans provide fixed, low-interest financing for land and building acquisition, machinery and equipment and working capital. There are many different ways to utilize IRP loans, please please contact our First Frontier Financing Team members, Tom Seasoltz, Renae Lynn or Marcus Edwards to discuss the specifics of your project.
PIDA Loan Parameters:
| Loan Amounts: |
Loan amount can be up to 50% of the total project costs or $150,000, whichever is less -Must be at least a 50% match. The source of the match can be from bank financing, seller financing, or private equity |
| Job Requirements: | 1 full-time job created/retained for every $25,000 borrowed |
| Eligible Uses: | Land and Building Acquisition Construction and Renovation Machinery and Equipment Working Capital |
| Interest Rates: | APR Fixed for Life of Loan (contact for current rates) |
| Collateral Required : | Personal Guarantee Highest lien position/mortgage available |
| Fees: | $250 Application Fee 2% of Loan Amount Commitment Fee Closing and Filing Fees |
KOZ & LERTA
Blair County has a number of tax abatement geographic zones to help foster economic development. The two programs that take advantage of real estate and other tax abatement programs are the Keystone Opportunity Zone (KOZ) and Local Economic Revitalization Tax Assistance (LERTA). The locations and tax advantages of both or listed below.
Keystone Opportunity Zone (KOZ):
The Keystone Opportunity Zone (KOZ) or Keystone Opportunity Expansion Zone (KOEZ) program can significantly reduce the cost of doing business through exemptions, deductions, abatements and credits of state and local taxes. Taxes waived by the KOZ/KOEZ are below and for a full list of KOZ/KOEZ FAQ’s Click Here:
- State corporate net income tax
- State capital stock and foreign franchise tax
- State personal income tax
- State sales and use tax
- Local earned income/net profits tax
- Local business gross receipts, business occupancy, business privilege and mercantile tax. Local real property tax
- Local sales and use tax
Blair County KOZs:
- Martin J. Marasco Business Park (expires 2023)
- Former Bon Secours Campus (expires 2023)
- South Altoona Business Park (expires Dec. 2027)
- DeGol Industrial Center (expires Dec. 2027)
- Robert Jubelirer Industrial Park (expires 2029)
Local Economic Revitalization Tax Assistance (LERTA):
The Local Economic Revitalization Assistance (LERTA) Program, authorized by PA Act 76 of 1977, is a great way to encourage revitalization and new construction Properties that qualify for LERTA are exempt from real estate property tax through a graduated scale over the duration of the 5 years of the LERTA. The base taxes are continued throughout and after completion of the construction/improvement and a new assessed value is determined, the difference between the new taxes and original taxes will be phased in at 0% year 1 followed by 20% per year until the full 100% at year 5.
Blair County LERTAs:
- City of Altoona
- Williamsburg Borough
- Catherine Township
- Woodbury Township
