Why Your Business Should Work Local

by Apr 27, 2020Updates0 comments

You don’t have to worry about securing financial support for your company alone; there are organizations out there to assist you. In fact, your local redevelopment authority may help you discover financing opportunities through local banks and government agencies that are commonly underutilized or completely overlooked. Moreover, there’s peace of mind in knowing a loan officer has probably driven past the land where you want to start or expand your business. Most likely, they also understand the subtleties of a particular property as well as the specific risks associated with it. Perhaps most importantly, local lenders, government agencies, and redevelopment authorities have a vested interest in improving their region.

Local Banks

There are countless commercial finance options available at the national, statewide, and local banking levels. But here’s the problem: At a large national bank, you’ll be communicating with dozens of different local officers over the lifespan of your loan (often 15-30 years). Conversely, if you choose to work with a local bank, you’ll have the opportunity to forge a personal relationship with them. Furthermore, a local lender is much more apt to partner with a redevelopment authority in order to offer a blended interest rate.

If you’re unfamiliar, a blended rate often averages two interest rates (e.g., one from the bank and one from the redevelopment authority). For example, your business might receive a $100,000 loan at 5%. Your local redevelopment could then match the principle at a 2% interest rate. Ultimately, your business could receive a combined loan of $200,000 with an interest rate of just 3.5%.

As previously mentioned, local banks have a vested interest in their region. After all, this addition to the community bolsters their potential client base. If you’re from — or looking in — the Erie area, local banks can offer a wide range of financial assistance such as:

  • Commercial vehicle loans
  • Equipment financing
  • Lines of credit
  • Real Estate loans

If you plan on setting up shop or expanding your business in Erie, PA, consider reaching out to your local economic development entity to learn more about low-interest financing options as well as government assistance opportunities.

Local Government Agencies

While federal governments offer countless resources, the competition is cutthroat. On the flipside, local and state agencies are more apt to support businesses with the expectation that they’ll create or retain jobs within their area.

Statewide aid, such as the Redevelopment Assistance Capital Program (RACP) and the Industrial Sites Reuse Program (ISRP), provide businesses in Pennsylvania with grants and loans at a low-interest rate.

Local subsidies, such as a TIF (tax increment financing) may also be available to you. In simple terms, a TIF is a reallocation of tax-revenue increases toward a public or private project that benefits a specific district.

While a TIF may not always be available, local governments can offer specialized loans for development in agriculture, business and industry, education, and housing development. Consider contacting the Corry Redevelopment Authority for assistance and more information on how to apply for these specialized loans.

Local Redevelopment Group

Economic development groups like the Corry Redevelopment Authority are here to help businesses like yours succeed. We work closely with organizations to provide financial resources, real estate assistance, and grant services. Corry Redevelopment Authority also meticulously reviews your project needs to see if your business qualifies for any local, state, and/or federal financing alternatives and grant opportunities. Through our services, we strive to attract outside investment and increase employment opportunities in both the Corry and Union City Pennsylvania areas.

If you’re more interested in raising money than borrowing it, issuing a bond may be more in line with your financing goals. Corry Redevelopment Authority can help you decide on terms, act as an underwriter, ensure your bond meets Securities and Exchange Commission (SEC) requirements, submit your final pricing to the Trade Reporting and Compliance Engine (TRACE), and even market your bonds.

By partnering with the Corry Redevelopment Authority, we open the door entirely to new financial options. From blended interest rate financing to finding underutilized tax incentives, we’ll help you discover what financing options will work best for your individual needs.

The First Step To Financing

Whether it’s qualifying for grant assistance or finding largely untapped tax incentives, small business owners don’t have time to sort through financing options other than traditional loans. That’s why it’s essential to work with local banks, government agencies, and redevelopment authorities, that may be able to discover entirely new financing options. If you’re interested in learning more, click here to contact us today.

Grow your business.

Contact us today to discuss how Corry Redevelopment Authority can assist your business improvement, expansion, growth, and advancement.