FAQ

We serve Pennsylvania, West Virginia and Maryland.

We are a non-profit organization. Our mission is to help small businesses grow and create the new jobs that people want throughout Pennsylvania, West Virginia and Maryland. Commercial banks have very different motivations so some very good entrepreneurs are unable to get a loan from the banks they approach.

The tourism industry offers unique opportunities for those in small rural communities. With that said, we’re very broad-minded. While we’ve backed our share of B&Bs and restaurants, we’ve also assisted wineries and distilleries, manufacturers, professional service firms and many other great small businesses.

We’ve been doing what we are doing since 1994. Our staffers have decades of experience in economic and community development. Our board includes community development professionals, executives from the natural resources and banking industries, and experts in nonprofit organizations. To date, we’ve made more than 686 loans totaling more than $104.4 Million, and helped small business owners create or retain more than 6,235 jobs.

We lend to new and existing businesses. Many of the people we help run service businesses, like restaurants or overnight accommodations. Many run attractions in the regional tourism industry such as wineries, distilleries, bike shops, and rafting and canoe companies.

We will loan money for the purchase of an existing business or to start a new one. Funds can be used to purchase real estate and business equipment, to remodel or restore buildings, and provide working capital to cover operational expenses.

Starting is easy! Click on Apply for a Loan to start the conversation.

Click the Loan Application Form

Click the Personal Financial Statement

We’ve provided loans for as little as $20,000, and over $1 million. The average is around $150,000. We expect the business owner to contribute resources totaling 10% or more of the project. An existing business might have sufficient value so that a cash contribution to a new enterprise might not be necessary.

Every week, our staff sits down to look over every request for a new loan. That means that within a week, we can tell you we are interested in your idea. We do this so you don’t waste time and energy wondering. After that first week, we get into more fact-finding with you. Our internal process takes six weeks at most. However, the borrowing process usually goes on longer, because the business owner is maneuvering through multiple layers of decision-making on the new project, both with family and friends, investors and attorneys, state agencies, you name it. If you are fast, we are right there with you.

Typically, we provide loans with terms lasting from 5 to 15 years; shorter for equipment purchases, longer for real estate. Since every business is different, we consider your needs and circumstances, and tailor our assistance to meet those needs. For example, we might be able to tailor your repayment schedule to help you through your start-up phase including a construction period, or seasonal fluctuations in cash-flow during slow months of the year.

Typically, new businesses are charged interest rates of 6% and up. The actual rate depends on the risk level of the business or the potential loss in collateral value.

We charge a loan application fee, a loan origination fee, and legal expenses related to the loan. We will spend a lot of time talking with you, before we ever ask for the fees. We don’t charge the $200 application fee until we are comfortable with your plan and expect to take it to our loan review committee. If your loan is approved, we then ask for a $500 deposit to begin preparing all legal documents. Remaining legal fees, if any, and the 1% loan origination fee are paid at the loan closing.

Loans require collateral of either cash or hard assets. Assets might include real estate, equipment and inventories. If those are not sufficient, a pledge of personal assets would be required. We require no less than 10% equity, more in most cases.

No you don’t, if you are looking for funding to expand an already successful part of your operation.

People starting a business need two things: financing and a good plan. If you are starting a business, then the process of writing a plan will help you understand what you need to do to be successful. If you have a well-thought-out plan with plausible financial projections, the loan application process will be easier and faster.

Small Business Development Centers, or SBDCs for short, are ready and willing to sit down and guide you through the process of preparing a plan. SBDCs cover every county in our region. A list is provided on our Business Planning page.

Click here to send a message, or call (724) 216-9160.