The U.S. Treasury Department has informed the Chester County Economic Development Council (CCEDC) that the organization has achieved the next major step in becoming a Community Development Financial Institution (CDFI) to support underserved businesses across the region. CCEDC has been awarded $300,000 in technical assistance to build operational capacity, provide training and education.
“To get to this point, CCEDC has needed to demonstrate a continued commitment to accessing and supporting minority- and women-owned businesses across the region, including those serving low-income areas, and we can’t wait to build on our success by delivering capital, training and assistance to businesses that have had trouble qualifying for such services,” said CCEDC President and COO Michael Grigalonis.
The announcement comes as CCEDC awaits an additional $7.6 million to support the Pennsylvania Catalyst Loan Fund, which provides a fixed interest rate of 5.00% to businesses of all sizes for such uses as working capital, inventory, workforce development and equipment. Loans typically range from $50,000 to $200,000, with borrowers providing equity up to 20%.
“We already have a healthy $2+ million pipeline of underserved businesses who have been approved and will benefit from this second round of PA Catalyst Loan funding that we administer to nine counties,” said Fund Manager Chris McHenry.
CCEDC’s announcement regarding CDFI status comes on the 30th anniversary of the establishment of the CDFI fund by the U.S. Treasury. CCEDC began the multi-year application process about a year ago. Business loans administered by CDFIs are funded by the government and private sector and can include term loans, lines of credit, SBA loans and commercial real estate loans.
