State Approves Financing For 4 Major LV Projects
By LVEDC Staff on August 12, 2014
Represents the largest one month multi-project financing in LVEDC history
BETHLEHEM( AUGUST 12, 2014)– In a sign of consistent and robust lending activity, the Lehigh Valley Economic Development Corporation (LVEDC) worked closely with four separate Lehigh Valley companies to procure Pennsylvania Industrial Development Authority financing that totaled more than $6.1 million.
The four projects include a total investment of more than $23 million, which is the largest volume of PIDA approved projects ever in a 30-day period for LVEDC.
– Hospital Central Services Cooperative, Inc. – the largest loan amount LVEDC has ever obtained totaling $2.25 million in funding – is expected to create 38 new jobs in addition to retaining 162 current employees;
– Penn Sheet Metal was awarded $975,000 for a project that will create eight new jobs and keep 20 current positions;
– The Bug Company of Pennsylvania will receive $960,000 in capital that will create 41 new jobs;
– Straight Arrow Products, Inc. was awarded $2 million for a project that will create 30 new jobs and retain 66 current employees.
“The Lehigh Valley continues to see sustained economic growth from existing companies who are positioning themselves for growth now and in the future,” said Don Cunningham, LVEDC president and CEO. “Part of that equation for growth comes from access to affordable capital and LVEDC’s finance department is pleased to have worked with these four companies to make these projects happen.”
LVEDC worked with Lehigh’s Economic Advancement Project (LEAP), the Allentown Economic Development Corp. and the City of Allentown on the Hospital Central Services financing and with LEAP on the Penn Sheet Metal project and Northampton County New Jobs Corp. on The Bug Company and Straight Arrow Products deals.
“We believe all four projects will pay handsome dividends for the Lehigh Valley’s economy for many years to come,” said John Kingsley, LVEDC vice president of finance. “These are the kind of companies we want to attract, retain and expand in our area. The LVEDC Finance Department has a long track record of working with banks, lending institutions along with state and federal governments to help qualified companies obtain the credit they need for projects like these.”
Hospital Central Services is a non-profit, industrial laundry processing and linen service company serving more than 45 member hospitals primarily in Pennsylvania, New Jersey and New York. The project the company is undertaking will consist of a 21,000 square foot expansion to their existing industrial laundry facility at their industrial laundry facility in Allentown.
The loan obtained for Hospital Central Services came from insights gathered through LVEDC’s Business Outreach Program, a business retention program, which supports businesses already in the Lehigh Valley.
“We are pleased to have been able to assist Hospital Central Services,” said Dawn Ferrante, LVEDC director of regional competitiveness. “Our program helps make local business more competitive by evaluating and addressing some of their key needs and concerns through a broad-based community coalition that sustains the Lehigh Valley’s long-term economic development efforts.”
Penn Sheet Metal, a sheet metal products manufacturing company that caters to industrial, commercial and medical clients throughout the region and tri-state area, will acquire and expand the property they currently lease in Allentown. As a result of the project, the company will be better positioned to pursue a new market segment which should incrementally increase the volume of their business over the next three years.
Penn Sheet Metal began as part of Pennsylvania Supply & Manufacturing. It was incorporated as Penn Sheet Metal in 1989 by Ken Smith. In December 2003, partners Craig Townsend and Michael Roeder purchased the business from Smith.
The Bug Company of Pennsylvania is acquiring the 47,500 square foot, former Lower Saucon Valley Elementary School in Hellertown to serve as the home for their family-owned animal nutrition company with its roots in live foods. The company carries an entire line of organically home-grown insects including crickets, mealworms, superworms, waxworms and fruit flies as live meals for exotic household pets. The company’s primary accounts include PetSmart, Pet Valu, Wild Birds Unlimited, Pet Supplies Plus, The Smithsonian as well as various zoos.
Straight Arrow Products, a cosmetic and beauty products manufacturer for the human and equine markets, is undertaking an 18,500 square-foot expansion project of an existing building in Forks Township to increase their manufacturing and warehouse space, to augment their current manufacturing capabilities in Bethlehem.
The LVEDC Finance Department administers more than one dozen state and federal programs and assists companies with the approval process.
The PIDA program is considered Pennsylvania’s flagship economic development lending program. PIDA can finance up to $2.25 million with a term up to 15 years.
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