HARRISBURG, Pa., Sept. 20 /PRNewswire/ -- Governor Edward G. Rendell said today that Pennsylvania's resources will support two early-stage technology growth companies in Chester and Cumberland counties and create and retain at least 106 jobs.
The $2 million in loan guarantees approved during today's Commonwealth Financing Authority meeting will provide the working capital needed for the companies to grow their operations in Pennsylvania.
"Throughout Pennsylvania, we have companies with the vision and ability to grow and succeed, but they lack the funding needed to make their ideas become a reality," said Governor Rendell. "Finding the capital to grow, and sustaining that growth, can be a challenge for any young business. For nearly four years now, we've been targeting our resources in companies that demonstrate potential in some of the most rapidly expanding industries.
"Our approach is working. As more and more firms open their doors and other companies choose to relocate to the commonwealth, we're creating new opportunities for our skilled men and women. Since January 2003, we've added 133,500 new jobs in the state. That's great news for Pennsylvania's economy."
The investments announced today were made through the Second Stage Loan Program, a vital part of Governor Rendell's $2.8 billion economic stimulus package. The program is a $50 million initiative designed to help two- to eight-year-old bioscience, advanced technology and manufacturing businesses secure loans from commercial lending institutions for working capital or capital improvement acquisitions. The Commonwealth Financing Authority administers the program.
Lending institutions must be approved by the Commonwealth Financing Authority to ensure that lines of credit and other financing are available to other emerging companies. Once an application for enrollment has been approved, the CFA will execute a master loan guarantee agreement in favor of the bank. As the bank approves loans for eligible businesses, it will submit information about each business and the borrower to the CFA. If the loan meets the requirements, a loan guarantee certificate will be issued to the bank indicating that the Authority will guarantee a portion of the loan.
The Commonwealth Financing Authority is a seven-member board created to administer and fund projects from programs created by Governor Rendell's economic stimulus package. In addition to Second Stage, CFA oversees Business in Our Sites, First Industries Fund, New PA Venture Capital Investment, New Pennsylvania Venture Guarantee, Building PA, PennWorks, and the Tax Increment Financing Guarantee programs.
The following projects were approved by the CFA:
The state is guaranteeing half of a $2 million revolving line of credit from Comerica Bank to Cerionx Inc., a company that specializes in pharmaceutical equipment cleaning technology, to supplement relocation costs from New Jersey to Chester County. This project will help create 51 new jobs at the new site.
The commonwealth is guaranteeing a third of Community Bank's $3 million line of credit to RF Central LLC for working capital. Due to increased regulations from the Federal Communications Commission, the telecommunications service and equipment company has seen substantial growth. This funding will help create 35 new jobs and retain 20 existing positions.
For more information on the Second Stage Loan Guarantee Program, and other stimulus programs, visit http://www.newPA.com or call 1-866-GO-NEWPA (1-866-466-3972).
The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us.
CONTACT: Michael Smith 717-783-1116 Kevin Ortiz (DCED) 717-783-1132
Source: Pennsylvania Office of the Governor