Governor Tom Corbett announced Wednesday he has directed the Pennsylvania Department of Community and Economic Development to reduce the interest rates of three business loan programs to encourage small business and manufacturing growth and new job creation.

Retroactive to February 1st,  the DCED will lower interest rates for the Machinery & Equipment Loan Fund, Pollution Prevention Assistance Program, Export Financing Program and Small Business First to 1.75 percent for applications received prior to July 1. DCED will also waive its fees charged to the borrowers.

In addition, at its February 5th board meeting the Pennsylvania Industrial Development Authority (PIDA) also reduced its interest rates from four percent to 2.25 percent for applications received through July 1. PIDA also waived its fees charged to borrowers.

“The lowered interest rates should be an extremely valuable tool to allow LVEDC to assist qualified Lehigh Valley businesses,” says John Kingsley, LVEDC vice president of economic development finance.”

LVEDC administers several Pennsylvania financing programs through its partnering area Loan Organizations  – Northampton County New Jobs Corp and Lehigh’s Economic Advancement Project. These programs are available to a number of qualified companies.

“Small businesses and manufacturers continue to be the driver of Pennsylvania’s economic engine,” Corbett noted in a news release. “Access to affordable capital spurs new growth and is critical to ensuring Pennsylvania’s economy is built to advance. By reducing interest rates and the cost of borrowing, we are encouraging new growth through providing critical access to capital and freeing up operating cash to support new job creation.”

For additional information on the financing programs available through LVEDC, please contact Kingsley at 610.266.0887 or jkingsley@lehighvalley.org.