Revolving Loan Funds (RLF)

Eligible Applicants
For-profit businesses located within Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, or Union Counties engaged in manufacturing, service, retail, or agricultural activities that have at the time of application, 100 or fewer full-time employees. Some funds are available to businesses throughout the State of Pennsylvania.

Eligible Use
Funds may be used for the following:

  • Land acquisition associated with the construction of a building
  • Building Acquisition
  • Building Construction
  • Building Renovation
  • Site improvements
  • Production machinery and equipment (M&E)
  • Furniture, fixtures, and equipment (FF&E)
  • Working capital
  • Professional fees
  • Closing costs/loan fees related to the project
  • Interest payments during bridge financing
  • Construction/renovation contingency (up to 10% of estimated costs)
  • Refinancing existing real estate and/or production M&E debt

Loan Amount
The minimum loan amount is $10,000. If no private financing is involved, the maximum total participation of SEDA-COG RLFs in a single project is 90% of the total eligible project costs unless the collateral value securing the loan is sufficient to make up the remaining 10%. The maximum total RLF exposure per borrower per project is $1 million.

The interest rate will be determined on a 4-tier system based on the overall creditworthiness of the borrower (0%-3% above the Base Rate). The Base Rate will be the 10-year Treasury Rate rounded to the nearest quarter percent at the beginning of each quarter. The Base Rate will be good for loans approved by the SEDA-COG Board of Directors Local Loan Review Committee during that quarter. The interest rate will be set at the time of loan approval and fixed for the term of the loan. Please call for current rates.


  • Loans made for working capital, including Furniture, Fixtures & Equipment (FF&E): Generally, the term for working capital/FF&E loans will be three (3) years. However, if the cash flow of the borrower cannot support a three (3) year term, a term of up to five (5) years may be provided, especially if the loan is secured by longer-term fixed assets.
  • Loans made for production Machinery & Equipment will have a term of up to ten (10) years.
  • Loans made for real estate (land, building, construction/renovation) will have a term of up to twenty-five (25) years.

Equity Requirement
10% of the project cost may be required either in cash or sufficient equity in the collateral securing the loan. For start-ups or changes in ownership resulting in unproven management experience, the borrower may be required to provide an additional 5% of the eligible project costs. If the appraiser determines that the project property is a special or limited-use asset, the equity injection may be an additional 5% of the eligible project costs. In some cases, equity in the real estate used to secure the SEDA-COG loan(s) may be used to offset the borrower’s required equity injection.

JOB Criteria
One job must be created and/or retained for every $100,000 of RLF funds in a project within three years of disbursement. Loans made to agricultural producers will not require any job creation/retention.


SEDA-COG will charge a one percent (1%) commitment fee on the amount of the RLF loan (due at the time the commitment letter is issued), a one percent (1%) closing fee on the amount of the RLF loan (due at the time of loan closing), and a minimum $500 legal documentation fee (due at the time of closing).

All costs associated with the closing and ongoing servicing of the loan shall be paid for by the borrower.