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Machinery and Equipment Loan Fund |
| The Chester County
Economic Development Council (CCEDC) will be pleased to assist
you in an application for a MELF (Machinery & Equipment Loan
Fund) Loan. CCEDC is the designated provider in Chester County
to make this low interest financing program available to
eligible businesses. |
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| Eligible Applicants |
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Manufacturing & Industrial
Enterprises |
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Mining |
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Production Agriculture |
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Information Technology |
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Biotechnology |
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Medical facilities |
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| Eligible Uses |
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Acquire and install machinery & equipment |
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Acquire livestock (agriculture) |
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| Loan Amount |
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$5,000,000 or 50% of the total project cost,
whichever is less |
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| Terms |
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Term of the Loan matches life of asset:
Up to 10 years for machinery and equipment |
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| Rate |
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Please contact us for the most current rate. |
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Agricultural producers located in
Agricultural Security Areas are eligible for a 1% rate
reduction. |
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| Private Financing |
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Private sector match required Term must be
the same as MELF loan or longer. Line of credit cannot be used
as a private sector match. |
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Collateral |
| Loans
are to be secured by lien positions on collateral at the highest
level of priority which can accommodate the borrower's ability
to raise sufficient debt and equity capital. Personal guarantees
from principals and spouses (20% or more ownership) of the
company will be required except under unusual circumstances.
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| Job Creation Criteria |
Except loans to agricultural
producers and medical facilities, for each $25,000 of loan
proceeds, at least one full-time job must be created or retained
at the project site within three year after the MELF loan has
closed.
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| Timing |
| Loan review and approval approximately
6-8 weeks after a complete application is submitted to the
Department of Community & Economic Development. |
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| MELF Loan Fees |
The State charges a 1%
non-refundable commitment fee of the approved loan amount.
CCEDC may charge a fee for assistance in application and
approval process to be negotiated on a case-by-case basis. |
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| Application Procedure |
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Applicant meets with staff or discusses via
telephone the proposed project and establishes potential eligibility. |
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Applicant compiles requested documentation
and forms. |
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Complete application is submitted either to
CCEDC staff for review or directly to DCEDC. |
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| NOTE: Commencement
of project prior to State approval will cause your project to
be INELIGIBLE for MELF financing unless a "Non-Prejudicial"
letter is requested by the Applicant. |
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For more information, contact Chuck Evans,
Director of Loan Programs, at 610.458.5700 x242 or
cevans@cceconomicdevelopment.com
For agricultural projects, please contact Sue Milshaw, Ag Loan
Coordinator, at 610.458.5700 x239 or
smilshaw@cceconomicdevelopment.com |
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