City offers loan program
LOCK HAVEN — The City of Lock Haven’s Commercial Loan Program was established in 1997 when the City was awarded a $500,000 grant from the US Department of Agriculture. Since then, loan funds have been provided to 47 local businesses totaling $1,830,000. These funds have helped businesses open their doors, renovate buildings, purchase new equipment, and more! In addition, loan funds have been used to create 176 full and part time jobs and helped retain 217 full and part time jobs.
The Commercial Loan Program offers affordable loans to businesses within the City with an easy, personable application process. Businesses can apply for a maximum of $50,000 or 50% of the total project cost to be used for working capital, machinery and equipment, and/or real estate and improvements. Loans are offered at a 3% interest rate. Some program requirements include the creation or retention of 1 job for every $10,000 in loan fund and the applicant must provide 10% cash equity.
In 2020, the City’s existing program was revised to provide relief to business owners during the COVID-19 Pandemic. Businesses can continue to use the loan funds for the purposes mentioned before but are now able to obtain a loan at a lower interest rate of 1%. In addition, loan payments will be deferred for 6 months following loan closing. These terms will only be offered until June 30, 2021 to businesses within the City of Lock Haven.
Please contact Abigail Roberts, Planner & Development Coordinator, at firstname.lastname@example.org for more information about the Commercial Loan Program.