Expanded Loan Program to Assist Minority Owned Businesses

In 2014, the Pennsylvania Department of Community and Economic Development (DCED) under Act 161 expanded its Minority Business Development Agency (MBDA) Loan Program, which is designed to stimulate the creation, retention and expansion of minority-owned businesses in the Commonwealth.

Loan limits were increased from $200,000 to $400,000. These are low-interest loans and can be used to finance a portion of the cost of land, building, machinery and equipment and working capital to minority business enterprises.

Last December, the Hispanic Chamber of Commerce of Central Pennsylvania (HCCCP) partnered with Senator Teplitz’s Small Business Coalition for a business breakfast, which drew many minority entrepreneurs to the community room at GIANT Food Store on Linglestown Road in Harrisburg to present the program highlights.

The presentation was headed by PA DCED representative Jared Lucas who outlined the streamlined loan application process. HCCCP President Paul J. Navarro, P.E. spoke of the many inquiries the chamber receives from Hispanic business owners about sources of capital, mostly to expand businesses, but also to start businesses.

“This program coupled with other bank financing or owners equity can be the answer for capital infusion into many business to finance their growth and expand job creation,” said Navarro.

“We are encouraged by the leadership of Senator Teplitz and his office has shown in reaching out to the minority community to take advantage of this source of finance,” added Navarro.

The HCCCP is a nonprofit organization operating under section 501©(6), and it is located at 112 Market St., Harrisburg. Representatives of the chamber can assist interested applicants by connecting them with the resources to guide them through the application process.

Please reach us at hispanichambercentralpa.com.

For more information about Act 161, please visit newpa.com.

Staff Writer

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