Venango County Economic Development Authority Revolving Loan Fund Program Guidelines

The Venango County Economic Development Authority Revolving Loan Fund was created in order to stimulate the creation and expansion of businesses within Venango County. The RLF provides low-interest financing to credit worthy businesses that currently, or could potentially, contribute significantly to the area’s economy. Land and building acquisition, construction and renovations, machinery and equipment purchases, and other business expansion projects that result in the creation or retention of jobs qualify for funding consideration*.

In addition, as the designated lead economic development agency for Venango County, VCEDA will work with prospective borrowers to take advantage of any beneficial programs that exist through other agencies or the Commonwealth of Pennsylvania.


Loan Guidelines

The RLF was created in order to serve a gap that exists in the local credit market. Within the community there are both national and local banks willing to loan to established businesses, and there is also a Revolving Loan Fund administered by the Northwest Commission that operates strictly as gap financing. With this in mind, the RLF is set up to provide two different options to prospective businesses:

The RLF can serve as gap financing for a project. Typically in this scenario, the RLF will finance 50%, a bank will finance 40% and the borrower will provide the remaining 10% of funding*.
In some cases, left to the discretion of the loan board, the RLF may be able to finance 95 to 100% of the total project cost if the potential economic impact is great enough to warrant the financial risk*.

Eligible Applicants & Uses

Eligible applicants include any business whose growth or expansion will significantly contribute to the area’s economy either through the creation or retention of jobs. Eligible uses include:

  • Land acquisition, including legal fees and associated expenses
  • Building acquisition, construction or renovation
  • Machinery and equipment purchases (either new or used)

Loan Terms & Rates

RLF financing rates are between 3 to 4%* and are fixed for the term of the loan. Loan terms are:

  • Up to 7 years* for New Machinery & Equipment
  • Up to 5 years* for Used Machinery & Equipment

Loan Review & Award Process

The Venango County Economic Development Authority will have final decision making authority for all matters regarding the RLF.

VCEDA has entered into an agreement with the Northwest Commission whereby the  Commission will facilitate the loan review process by utilizing the Commission’s already existing Loan Review Committee. This committee is comprised of local bankers, realtors, accountants and others.

The Loan Review Committee will make a recommendation on the application to the authority board, who will then vote to approve or deny the loan.

Payment Policy & Collateral Details

*Personal and/or corporate guarantees are required. For gap financing the Authority may subordinate lien position to the bank. Gap financing is at the discretion of the loan board and subject to credit approval. For full financing, the Authority will require first lien on all purchases. The VCEDA will pre-approve all purchases covered under the revolving loan fund. Payments will be due on a cycle agreed upon by the loan administrator and the borrower. Minimum payments required. Late fees will be assessed for all payments returned 30 days after the due date. All loans are subject to VCEDA and credit approval and are at the discretion of the VCEDA and loan administrator. All revolving loan practices will be in accordance with DCED and the Keystone Communities Program Guidelines. See loan administrator for details and full terms and conditions.