Financing Helps Secure 3 Development Projects That Will Create 53 Jobs
By LVEDC Staff on July 1, 2014
State, federal loans secured by LVEDC create growth now and in the future.
The Lehigh Valley Economic Development Corporation worked closely with three regional companies to procure Pennsylvania Industrial Development Authority (PIDA) and U.S. Small Business Administration 504 (SBA) financing that totaled more than $3.9 million in loans.
The three projects include a total investment of $10.3 million and the anticipated creation of 53 jobs.
The news continues a trend of outstanding activity in LVEDC’s Finance Department. In the last 14 months alone, the department has hired an addition staff member, and now consists of four individuals – John Kingsley, vice president of finance; Kim Edwards, director of finance; Jaime Whalen, finance administrator and Greg Rarick, director of credit risk.
“We are on pace to shatter our previous lending levels,” said Kingsley. “The LVEDC Finance Department is pleased to work with some outstanding loan organizations such as Lehigh’s Economic Advancement Project and the Northampton County New Jobs Corp. to provide financing to qualified companies who are seeking to expand their business operations.”
Morgan Hill Senior Living, LLC, was approved for $1.89 million in SBA 504 funding for a project that is expected to create 30 new jobs; Nameek’s Inc. was awarded $1.52 million in SBA 504 loans and is expected to create 23 new jobs; and Innovative Control Systems will receive $550,000 in PIDA capital.
“One of the most important parts of generating economic growth is helping companies obtain affordable access to capital so they can grow now and in the future,” said Don Cunningham, LVEDC president and CEO. “LVEDC has a very experienced finance department and shared services center that works with a myriad of partners to fund companies that will ultimately fuel the region’s economic growth.”
LVEDC worked with Northampton County New Jobs Corp. to administer the loan programs for the Innovative Control Systems project.
The LVEDC Finance Department administers more than one dozen state and federal programs and assists companies with the approval process. Vice President John Kingsley and his finance department personnel have a long track record of working with banks, lending institutions, and the state and federal governments to help companies and projects that spur economic growth.
The Morgan Hill project financing will go toward acquiring and converting a property into a personal memory care facility that will about 27,537 square feet with a total of 32 rooms accommodating 40 residents in Easton. Total project costs are greater than $5.4 million.
Nameek’s, a distributor of high-end luxury bathroom fixtures, will use the capital to acquire a facility in West Point, Pa. to consolidate all of the locations the company currently leases. Total project costs are $3.8 million.
Innovative Control Systems, a manufacturer of system control and point-of-sale equipment for the automated car wash industry, sought to expand their operations by moving their manufacturing and warehouse operations into a 19,000-square foot facility located in Palmer Township. The money will go toward a project that totals $1.1 million.
The PIDA program has been termed Pennsylvania’s flagship economic development lending program. PIDA can finance up to $2.25 million with a term of up to 15 years.
SBA 504 loans provide long-term, fixed-rate financing to small businesses to acquire real estate, machinery or equipment for expansion or modernization.
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