CBPA Revolving Loan Fund Loan Policies

Eligible Applicants:                                    
All new and existing businesses and industries, including manufacturing and industrial projects
and small business projects.

Eligible Activities:                                       
Acquisition and/or improvement of land and building, including new construction or renovation of existing facilities; machinery and equipment purchases; working capital, inventory and the payment of professionalfees, including but not limited to architects,engineers, attorney fees.

Ineligible Activities:                                       
Speculative activities, purchase or finance equity in private businesses, debt consolidation or refinancing.

Interest Rates:                                             
Rates will follow the Pennsylvania Department of Economic Development PIDA (Pennsylvania Industrial Development Authority) lending rates for building and land, and MELF Machinery and Equipment Lending Fund) for machinery and equipment.

Equity Requirement:                                
5% of developer equity input required.

Terms:                                             
Variable depending upon use of funds, security being offered, and other factors determined bythe CBPA Revolving Loan Fund Committee. All loans will be secured by the highest lien position available on collateral.

Job Impact:                                    
Projects must demonstrate impacts to sustainable employment.

Relocation:                                    
Agreement shall state that note is due if company relocates out of described area or ceases operations.

Fees:                                               
1% loan application fees, plus all loan closing costs.

Payment Schedule:                                      
Shall follow amortization schedule provided at closing. Generally, first payment is due one month from date of closing, with monthly payments on same date thereafter for term  of loan.

Code Compliance:                                 
Required.

Environmental Audit:                                         
All applicants must demonstrate compliance with local, state and Federal environmental regulations. Projects involving real estate must provide a current environmental audit.

Demonstration of Benefit:      
All applicants must demonstrate a need for CBPA RLF funding and provide supplemental evidence to document the need. Acceptable documents include, but are not limited to bank commitment letter outlining terms and conditions that loan is contingent upon for RLF funding, or bank denial letter with reasonsprovided for denial.