Enterprise Zone

ENTERPRISE ZONE
AND
ENTERPRISE ZONE REVOLVING LOAN FUND

City of Erie New Communities Program Enterprise Zone (NCPEEZ): Since its inception in 1986, the Erie Enterprise Zone has been able to attract $25 Million in State assistance, which when coupled with over $120 Million in private sector investment, has created over 4,000 jobs and retained at least 6,000 jobs within the community. The Erie Enterprise Zone is a defined geographic area within the City of Erie, which provides opportunity for manufacturing, industrial and certain high tech type businesses. Businesses that are located within the boundaries of the zone are eligible for various types of incentives from loan interest loans to tax credits and job training programs. Please note that the zone also encompasses stated designated Keystone Opportunity Zones that provide for virtual tax-free areas to encourage the reuse of underutilized, abandoned, etc. industrial sites. See Erie New Communities Enterprise Zone Map that details the zone boundaries to include Keystone Opportunity Zone sites (Click Here to View).

City of Erie Enterprise Zone Revolving Loan Fund (EZRLF): Low interest loan financing for land and building acquisition, construction and renovation, machinery and equipment purchase and refurbishing, resulting in the creation or retention of jobs. Offered through the City of Erie Enterprise Zone (EZ), the program can be used to finance industrial development projects for manufacturing and industrial enterprises, and high tech businesses within the boundaries of the EZ.

EZRLF funding fills a gap between bank financing and your organization’s equity. The Fund can provide financing up to 50% of the total project cost, or a maximum of $250,000. The interest rate is fixed at 4-4.5% at the time of loan closing. The terms of the loan generally are as follows:

Used machinery and equipment             5 years
New machinery and equipment             7 years
Land and building                                15 years

In construction or acquisition projects, a short term of interest only payments can be negotiated before the amortization begins. Generally, the loan is a second lien on business assets. In some cases, the Fund will be in third position when a private lender or state authority require superior position.

For more information contact: Christopher M. Groner, Economic Development Specialist, City of Erie, Room 404, 626 State Street, Erie, PA 16501-1128, Telephone: (814) 870-1272, FAX: (814) 870-1443, E-mail: cgroner@erie.pa.us