A Lehigh Valley apparel distributor and internet retailer has been approved for nearly $1.8 million in federal financing to help expand its operations. Luxury Lane, which currently operates out of a 10,360-square-foot facility in Easton, will construct a 43,000-square-foot warehouse at Lehigh Valley Industrial Park VI in Bethlehem Township. The project will allow the company to retain 12 existing employees and create an additional 12 over the next two years.

The total cost of the project is expected to be $4.8 million.

Lehigh Valley Economic Development Corp. (LVEDC) worked with Luxury Lane and the federal government to arrange financing through the Small Business Administration’s 504 Loan Program. LVEDC will now administer the SBA loan.

“Luxury Lane is an innovative and top-flight e-tailer and distribution company that we want to see stay and grow here in the Lehigh Valley,” said Don Cunningham, LVEDC president and CEO. “This expansion positions Luxury Lane for future competitiveness and growth in the apparel and clothing accessory market.”

About 2,500 square feet of the new warehouse facility on Baglyos Circle in Lehigh Valley Industrial Park VI will be utilized for office space.

Luxury Lane sells and distributes a wide variety of retail clothing and accessory products ranging from outerwear to baby shoes to Internet retailers and directly to consumers. The company owns and operates the LuxuryLane.com e-commerce website and sells through Amazon’s marketplace, among others.

SBA 504 loans provide long-term, fixed-rate financing to small businesses to acquire real estate, machinery or equipment for expansion or modernization.