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SPC’s Business Finance Assistance staff works with entrepreneurs to aid their business expansion and development projects. SPC acts as a public partner to reduce risk for local lenders. Through the years, SPC has developed strong relationships with community-based economic development entities to create comprehensive loan packages for small businesses to obtain low-interest loans.
SPC has been authorized as an Area Loan Organization by the PA Department of Community and Economic Development and is an authorized economic development lender for both the Appalachian Regional Commission and Economic Development Administration.
SPC’s Business Finance Assistance staff reviews and analyzes every business client’s application to allow its Loan Review Committee to make informed loan decisions. Over the past 12 months, manufacturing and industrial entities have made up the vast majority of businesses applying for loan funds.
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SPC’s current loan portfolio consists of 136 loans totaling principal balances of approximately $12.3 million. During the past year, the Business Finance Assistance staff worked on fourteen projects totaling $7.25 million, leveraging $3.5 million in private sector money.
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An example of a successful manufacturing business project occurred when SPC received an inquiry from Cannon Boiler Works (CBW), located in New Kensington, about borrowing money to expand their operation. Management at CBW had entered into an exclusive licensing agreement with a client, thus causing CBW to increase and modernize their manufacturing process.
CBW had previously borrowed money from one of SPC’s revolving loan funds and knew that not only would they receive a preferential interest rate on their loan, but that they would also be dealing with a professional staff who would look out for CBW’s interests.
“It is great working with the SPC Business Assistance staff--they really care about our business.” -- Midge Flinn, Controller and CFO, Cannon Boiler Works
In 2010 SPC also approved a loan for a small machine shop located in Clairton, Allegheny County. Three sisters currently own and operate Peterson Machine Shop, Inc. (PMSI), which manufactures small tooling parts for larger manufacturing firms in the region.
Because of their size, PMSI has found it is important to reduce the manufacturing turn-around time in order to successfully to generate repeat business. Although their revenues from the past several years have been down, PMSI was recently able to engage several larger firms in longer and larger contracts. Now all they needed was to acquire a piece of machinery to allow them to manufacture parts at a higher velocity. Due to PMSI’s relationship with SPC’s Business Finance Assistance staff, the sisters knew they would be treated well.
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For more information about SPC's Small Business
Finance Program, contact Richard Wallace at (412)
391-5590 x322 or BusinessFinance@spcregion.org.
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