New Lehigh Valley Lending Network to Help Companies Locate, Expand in the Region
By Colin McEvoy on March 30, 2015
The Lehigh Valley Economic Development Corporation (LVEDC) is taking on a new role in helping companies make their dreams of locating and expanding in the region come true.
Starting April 1, LVEDC will launch a Lehigh Valley Lending Network, which will offer a single point of access to both private and public financing options to support economic growth projects.
“One of the core missions of LVEDC is to serve as a regional shared services and resource center,” said Don Cunningham, LVEDC president and CEO. “Access to capital is one of our most important priorities. Whether it’s private or public financing doesn’t matter. We want to provide our customers with a full range of options and opportunities.”
The Network will streamline the process for Lehigh Valley businesses that are seeking to establish new bank relationships and allow them to determine the lowest cost options to finance their project, according to John Kingsley, LVEDC vice president of finance.
“The intention of the Lending network is to allow expanding businesses in the Lehigh Valley that are seeking access to incentive financing and/or to traditional bank loan products to be able to canvass many of these resources through one inquiry simultaneously and to ultimately identify the best possible financing options for their specific needs,” Kingsley said.
“The fact is many companies find the process of trying to find the right bank for their needs exhausting and layered in redundancy,” he said. “Add to that trying to understand the myriad of financing programs that are available to assist businesses with lower costs of capital and it can be downright daunting. We want to help companies find the right financing quickly.”
This Lehigh Valley Lending Network comes in addition to the role LVEDC has already long played in providing the region’s businesses access to low-interest, fixed-rate financing programs that are administered by the organization.
The program is simple: An eligible borrower completes a series of forms outlining their business and provides a financial profile outlining their operating history and financing needs. This information is circulated to banks and economic development lenders based on the preferences of the borrower.
Representatives of the selected lending organizations will then provide an expression of interest in working with the borrower that will outline the likely terms of a loan that could be offered if the company meets specific eligibility and credit criteria.
To be eligible for the program, a company must have a profitable operating history during at least two of the past three years, and must be locating or expanding their business within the Lehigh Valley.
To access the banks in the lending network, the company cannot have an existing lending relationship with a Lehigh Valley bank, or must be unable to obtain the lending services or products they require through their existing relationship.
LVEDC has attracted more than 10 banks to participate in the Lending Network. More information on these participants will be available on the organization’s website in the near future. Additionally, more than a dozen economic development organizations will be part of the program, allowing access to low-interest, fixed-rate financing from local, state and federal resources.
Bringing these two providers together in the lending network will allow companies to access a broad array of loan products with a single inquiry. To find out more about the Lending Network or to see if your company is right for the program, please complete our online pre-application form at this site.
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