New $51
Million SBA Investment Fund in Reading, PA, for SBA Loans
This $51 million
SBA investment fund, a public/private partnership, is expected to stimulate
economic development in the City and to create jobs as local businesses
receive the funds to expand and as new businesses are attracted into the
area.
Fulton Bank has partnered with the City
of Reading, Pennsylvania, the Federal Home Loan Bank of Pittsburgh and the
Small Business Administration (SBA) to create a new SBA investment fund to benefit
small businesses.
This innovative initiative, the Reading
Family Business Loan Program, will encourage businesses to locate
within the City of Reading and will help established small and
family-owned businesses to grow by providing below-market rate commercial
loans at fixed rates for terms up to 20 years using the FHLBank Community
Lending Program.
Fulton Bank, an FHLBank member bank, has
committed $25 million for this effort; in addition the Small Business
Administration will participate with up to $20 million from the SBA 504
program for eligible small business borrowers. The private equity
component from participating businesses amounts to at least $5 million.
Additionally, Fulton Bank is providing $5.4 million for working capital
financing, which allows persons carrying fixed asset financing to be
eligible for tandem working capital loans. The City of Reading has
contributed $540,000 to the effort. These funds will be used as a debt
reserve for the working capital loan component of the program.
It's exciting, and gratifying, to see SBA
and local funds joined to provide real services to city growth. The City
of Reading has a great deal to be proud of in putting this together.
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SBA Investment Fund
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