In a year where plenty of undesirable economic records were set, the Greater Harrisburg region can claim one of 2009s bright spotsa record year for loan programs through the Capital Region Economic Development Corporation. Twenty-five businesses received approvals for more than $9.2 million in low-interest financing. The loans, made through the CREDC from several sources like the Small Business Administration and the states Department of Community and Economic Development, help leverage another $16 million of private investment in the region and retains or creates more than 450 jobs.
Our role in this whole process is key, says CREDCs business finance officer Melissa McLaughlin, a former bank loan officer. When you interact with any government component to get funding, there are a lot of restrictions and guidelines. CREDCs role is to bring all their experience and walk companies through the hopes and manage the red tape.
While each application is different, McLaughlin notes patterns. For one, some businesses have managed themselves conservatively and are planning on adding workers as the economy continues to improve. For other companies who could not acquire bank financing because of the sectors credit crunch, CREDC served as an alternative financing option.
Among those 25 companies are Dauphin Countys Precision Digit-All Solutions, which received a nearly $100,000 loan to buy equipment as part of a project that added six jobs. Then theres mechanical contractor RMR Central Services, who received $64,500 that was matched by equal amounts of private equity investments and used to purchase a new building to accommodate the growing HVAC/plumbing company. A $159,000 Small Business First loan to Harrisburgs Art Communication Systems for new machinery helped retain and/or create 35 jobs.
McLaughlin wouldnt be surprised if 2010 results in another record year.
So far this month, weve got lots of activity, she says. Companies are calling and inquiring. Not all of them qualify, but just to hear the phone ringing at the level it is, it reminds me of last year.
Source: Melissa McLaughlin, Capital Region Economic Development Corporation
Writer: Joe Petrucci