Lehigh Valley Medical Device Manufacturer Receives State Financing
By Colin McEvoy on April 11, 2016
A medical device manufacturer that relocated its corporate headquarters and manufacturing operation to the Lehigh Valley last year is now looking to grow even more thanks to a loan from the state.
Tyber Medical, a manufacturer of orthopedic and spinal implants based in Hanover Township, Northampton County, has been awarded a $362,500, 10-year loan at a 3.25 percent fixed rate, according to the state.
The loan will be used to purchase manufacturing equipment for in-house fabrication, a $725,000 project that will create 25 new jobs, according to the Pennsylvania Department of Community and Economic Development (DCED).
“The funding provided through the PIDA loan program is another important milestone as we execute to our strategic plan,” said Jeff Tyber, President and CEO of Tyber Medical. “The PIDA funding will further empower our company to focus on building our customer’s private label brand while expanding our internal capabilities.”
The loan was awarded through the state’s Pennsylvania Industrial Development Authority (PIDA) program, which offers low-interest loans and lines of credit to eligible businesses that commit to creating and retaining full-time jobs.
In 2016 so far, PIDA has approved $15.2 million in low-interest loans that have resulted in $33.2 million in private investment across the state, supporting the creation and retention of 607 jobs, according to the state.
“In addition to the loans approved, the PIDA is offering extremely low interest rate options,” said DCED Secretary Dennis Davin. “The ability to offer lower rates, ensures that businesses have access to critical capital needed to support advancement and on-going success.”
In August, Davin announced that Tyber Medical was relocating its corporate headquarters and manufacturing operation to the Lehigh Valley from Morristown, N.J. At the time, the company announced it leased a 4,200 square-foot site and planned to invest $386,000 on the project.
“Tyber Medical’s decision to relocate to Pennsylvania and create more than two dozen, high-paying jobs is great news for the region and state,” Pennsylvania Gov. Tom Wolf said in August. “Medical device manufacturing is a thriving sector and will continue to create good-paying jobs through the significant reforms proposed my budget plan.”
In 2015, Tyber Medical was offered a funding proposal from the Governor’s Action Team, the economic development arm of the governor, which encouraged the company to apply for a low-interest loan through PIDA. The Lehigh Valley Economic Development Corporation (LVEDC) helped Tyber Medical with processing the loan application.
“The guidance from the Lehigh Valley Economic Development Corporation allowed Tyber Medical to efficiently navigate the process while maximizing both the state of Pennsylvania’s goal of job creation and Tyber Medical’s goal of internal enhancement,” Tyber said. “We look forward to putting the funds to use and creating additional jobs in the Lehigh Valley.”
John Kingsley, LVEDC Vice President of Finance, said: “We’re very pleased Tyber Medical has chosen the Lehigh Valley, and that they’re growing thanks to this PIDA loan. Health care is the region’s leading sector in terms of job creation, and Tyber Medical is a great company that makes an excellent addition to our medical device community.”
Tyber Medical’s loan was announced last week by the state as part of $3.9 million in low-interest loans awarded over the past month for five projects in Pennsylvania that will generate more than $10.8 million in total investments, Davin said.
PIDA, one of several financing programs LVEDC administers, is considered by the majority of lenders to be Pennsylvania’s flagship economic development lending program. It can finance up to $2.25 million with a term of up to 15 years.
PIDA funds can be used for land and building acquisitions, construction and renovation costs, machinery and equipment purchases, working capital and accounts receivable lines of credit, multi-tenant facility projects, or industrial park projects, according to the state.
PIDA loans are awarded through industrial development corporations. In this case, the Northampton County New Jobs Corporation was awarded the $362,500 loan on behalf of Tyber Medical, according to the state.
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