New Loan Program for Small Business is Announced

SEDA-COG and Immix Wireless are collaborating on a new loan program focused on telecommunications and broadband services, and companies serving Marcellus and Utica shale-related industries.  The TEAM (Telecommunications, Equity, and Marcellus) program was announced at the January 25 meeting of SEDA-COG's Board of Directors.   

In making the announcement, James Taliaferro, Director of Business Development, Immix Wireless, said, “We are excited about partnering with SEDA-COG and playing a part in the growth of industries that will help lead Central Pennsylvania’s economic growth in the years to come.”  Immix provides wireless voice and data services to residents in 10 counties throughout Central Pennsylvania.  It is the fastest growing cell service provider in the region, and was recently awarded $36 million in federal funds through the American Recovery and Reinvestment Act (ARRA) to provide mobile high speed internet in Central Pennsylvania.  

A total of $1.12 million in financing is available through the TEAM program, of which Immix contributed $120,000.  The balance was secured through the federal government’s State Small Business Credit Initiative, for which funds were provided through ARRA.  The Commonwealth of Pennsylvania received $29.2 million, which it distributed through a competitive selection process.  Ultimately, funds were allocated to 12 organizations including SEDA-COG.  Last week the Pennsylvania Economic Development Financing Authority approved transfer of the federal funds to the partner organizations.
The Commonwealth’s receipt of funds was announced in December by Secretary C. Alan Walker, Pennsylvania Department of Community and Economic Development (DCED).  DCED was represented at SEDA-COG's Board meeting by Craig Petrasic, Assistant Director, Center for Private Financing.   

Petrasic said, “The best way to support our small business is by partnering with the private sector to maximize resources.”  Before allocating funds, DCED requested proposals from its local economic development partners.  As a result, says Petrasic, “This initiative will result in significant small business job creation across the state.”   

SEDA-COG's new program joins its nine other financing programs through which loans are available to new or expanding businesses that meet eligibility requirements.  Some, such as the First Industries Agriculture Program, serve a particular niche.  Others serve a wide range of small businesses.  Loan projects generally include private bank financing, as well as a 10% equity contribution from the borrower.   

“Coming up with 10% can be quite a challenge in the case of large, multi-million dollar projects,” according to John Reichard, Director, SEDA-COG Business Development Financing programs.  Such projects are often financed through SEDA-COG's SBA (Small Business Administration) 504 program.   

“Through our new TEAM program,” said Reichard, “we can provide half the required equity injection for SBA 504 loans.  For example, if $250,000 in equity is needed for a $2.5 million project, we can use TEAM funds to reduce that to $125,000.  This will assist companies in accessing our SBA 504 program, thus making it more attractive to borrowers.”  In addition to the 11 counties it primarily serves, SEDA-COG's SBA 504 loans are available throughout Pennsylvania.    

“Reducing a small businesses’ equity requirement,” said Reichard, “will allow more working capital to remain in the business, helping ensure their stability and growth, and increasing the likelihood of sustainable job creation.”
 
Immix Wireless is a technology leader specializing in wireless products and service that improve the lives of rural residents in Central Pennsylvania. Immix Wireless offers a personal approach and is proud to employ a U.S.-based English/Spanish call center. The company operates 6 local company-owned stores and offers products through its independent Dealer/Agent program. Immix Wireless was recently awarded $36 million in Federal stimulus funding to provide 4G mobile high speed internet in Central PA. For more information visit www.immix.com.