Local Economic Development Organizations

A Source of Business Expansion Assistance

By Charles Blankenship, Lebanon Valley Economic Development Corporation

Many Pennsylvania manufacturers mistakenly believe their local economic development agencies are only interested in attracting new business to the community.

Actually much, if not most, of the local economic development organizations’ resources are directed toward retention and expansion of existing business.

There are a variety of local and regional economic development groups in Pennsylvania. Some provide financing assistance, some develop real estate for manufacturing use, others can help with site selection, export assistance and a wide range of related support.

Some organizations like the Lebanon Valley Economic Development Corporation in Lebanon County offer one-stop comprehensive assistance to expanding businesses.

Names for local business support agencies also vary: economic development corporations, industrial development corporations, industrial development authorities, and similar identities. Some are a part of local or county government, some private, some public-private partnerships and a number of them associated with chambers of commerce.

Local economic development groups may serve as conduits for state or federal funding.

Local organizations in Pennsylvania can help manufacturing expansion with:

• Small Business First Fund loans up to $200,000.
• Pennsylvania Industrial Development Authority loans up to $2,250,000.
• Machinery and Equipment Loan Fund loans up to $500,000.
• Pennsylvania Economic Development Financing Authority Bond Program loans up to $10,000,000.
• Land and buildings for sale or lease.
• And other assistance.

These programs usually have job retention or job creation criteria, but the terms are very supportive of business expansion.

A good way to keep in touch with your local economic development corporation is to participate in the Business Retention and Expansion Program (BREP). This state-funded program allows local organizations to hire staff to annually visit businesses in their region. By agreeing to meet with a BREP representative when they call, you will have the opportunity to confidentially discuss your retention or expansion issues and be linked to the right experts for help.

Periodically local economic development groups may contact you for contributions, to serve on the board of directors, or other forms of support. There are a number of sound business reasons to invest time and money in local economic development agencies, including:

• Attracting more suppliers and customers in the community to your business.
• Keeping your property taxes low by expanding the tax base.
• Attracting a larger pool of workers to the area.
• Making it possible for the organization to be in operation when you need confidential service for your expansion.

So contact your community economic development organizations. Learn about the assistance they can supply to your business. Don’t think they only attract new industry. All of their programs are available to assist your business expansion.