The Punxsutawney Regional Development Corporation continues to offer a low-interest loan program to local businesses.  Loan requests will be considered from industrial and commercial businesses located in the Punxsutawney Borough, Bell or Young Township that commit to carrying out job-producing projects within the service territory.  Other than manufacturers and projects outside the service area will be considered on a case by case basis by the PRDC.

Applicants must commit to the creation of one new job per every $50,000 in loan proceeds requested.  All jobs must be created within three years of the date of loan closing.

Applicants requesting job retention consideration must include evidence to support an imminent reduction in employment.  Retention projects will be considered only when the applicant can provide evidence of financial stability as determined by the PRDC Loan Review Committee.

Proceeds from the Revolving Loan Fund Program can be used for the purchase of machinery & equipment only.  Loan proceeds may not be used for working capital or refinancing of existing debt.

Loan requests may not exceed 50% of total project costs or $75,000 whichever is less.  Eligible project costs are those that involve a new capital outlay in support of the project.  Net worth or existing assets are not eligible costs.  Any form of public or private financing may be used in conjunction with proceeds from the Revolving Loan Program.

The interest rate on loans made by the Punxsutawney Regional Development Corporation Revolving Loan Program shall currently be 2%, set and established by the Corporation and reviewed from time to time.

A non-refundable application-processing fee of $100.00 will be required of each applicant at the time of application submission.  A fee equal to 1% of the outstanding balance of the loan will be charged annually with the first annual fee collected at the time of loan closing.  Following year’s annual fee of 1% of the outstanding loan balance will be collected monthly as amortized.  Additionally, the borrower will be responsible for all legal fees and closing costs associated with the loan received by the Punxsutawney Regional Development Corporation.

For more information concerning the PRDC revolving loan program, please contact Laura Mesoraco at 938-7692 or any PRDC member.

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