SBFF
PENNSYLVANIA DEPARTMENT OF COMMUNITY & ECONOMIC DEVELOPMENT
SMALL BUSINESS FIRST FUND (SBFF)
General Information
This program is designed to enhance overall economic development and job creation within the Commonwealth. The loan funds will be used to assist in the start-up and expansion of small industries in Pennsylvania. Preference will be given to those projects that increase exports from the state, decrease imports and/or create new jobs. One full-time equivalent job must be demonstrated to be created or preserved for each $25,000.00 loaned from SBFF.
SBFF provides low-interest financing for a portion of the costs of land, building, machinery and equipment and working capital to businesses unable to fully finance these projects with equity, bank financing or other private and public sector sources. An applicant must have 100 or less employees, including parent, affiliates and subsidiaries located within Pennsylvania at the time of application.
Eligible Projects
General - For profit projects or ventures by a small business enterprise other than a project or venture related to mercantile, commercial/retail operations or personal/professional services.
Defense Conversion, Environmental Compliance, Recycling, Export Related, Advanced Technology and Computer-related services.
Loan Limits
Maximum SBFF participation in a project is 50% of the total project cost, or $200,000.00, whichever is less. Working capital loans (limited to new inventory, new personnel and new training) may not exceed $100,000.00 or 50% of the project cost, whichever is less. Private sector funds complete the financing.
Interest Rates and Term of Loan
The interest rate for SBFF projects is fixed for the life of the loan at 5%. The term of the loan matches the life of the asset: 10 years - Land & Building; 7 years - Machinery & Equipment, 3 Years & Working Capital.
