June 26 (Source: By Steve Snyder, Lebanon Daily News, PA) - A new loan program will give companies another option for funding for projects in the city of Lebanon Valley Pool Lebanon.The program loan "is part of our overall strategy to create funding programs that do not depend on state and federal governments, "Charles Blankenship, president of the Lebanon Valley Economic Development Corporation, said Thursday.
"This program is to pool their funds together to make bank loans, mainly for census tracts with low and middle income," Blankenship said, noting that the idea was generated after the top of the LVEDC on the city last year.
"This, we believe, will give us a competitive advantage over other cities we compete with," said Blankenship.
Blankenship credited Jeff Orner, officer Sovereign Bank and Chairman LVEDC with the formulation of the idea of loan pool.
A pool of $ 1 million has been created with Jonestown Bank and Trust Co., First National Bank of Fredericksburg, Metro Bank and the LVEDC.
"Other banks are in different processes to join us," said Blankenship, anticipating that the fund will grow by about $ 2 million.
The next step is to form a committee ready pool of representatives of participating lenders. This committee will make decisions on loans.
The new program will function as a second lender. A prospective borrower will have to find another primary lender, even if the pool of Lebanon Valley loan may finance up to 40 percent of the case.
Loans are considered for the acquisition of commercial or industrial properties, renovation, demolition, construction and equipment purchases. Loan amounts range from $ 100 000 $ 1 million. Equipment loans can be extended for seven years, while mortgage loans have an amortization period of up to 20 years.
"We appreciate the willingness of banks to accelerate ... with a substantial allocation of funds, making their banking and be good citizens, "said Blankenship.
He anticipates the program will receive the candidates quickly.
"I spoke with people with good projects that could not find a government program to meet their needs," said Blankenship. "We do not have to worry about the government's requirements to guarantee."
The ultimate goal of this summit was to generate ideas to create $ 1 million in property tax and income tax earned income for the city.
"We are working on other creative ideas," said Blankenship.
stevesnyder@ldnews.com; 272-5611, ext. 152
Source: By Steve Snyder, Lebanon Daily News, Pa.
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Copyright (c) 2011, Lebanon Daily News, Pa.
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A service of YellowBrix, Inc. Publication Date: 26/06/2011
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