A SUCCESS STORY
WHO WE ARE
Northeastern Economic Development Company of PA-CDC, Inc. (NEDCO) is a regional non-profit organization dedicated to contributing to the economic development of Pennsylvania communities. Founded in 2002, NEDCO assists small businesses with financing for fixed-asset projects. NEDCO, a duly-registered 501(c)3 non-profit corporation, was founded by William F. Rinaldi of Moosic, PA, who serves as the company’s CEO. NEDCO’s day-to-day operations are handled by Managing Director Christopher J. Cawley. The company exists to provide a benefit to the Northeastern Pennsylvania communities and businesses it serves.
WHAT WE DO
NEDCO’s primary financial assistance tool is the Small Business Administration (SBA)-backed 504 Loan Program. Through the use of the 504 Program, NEDCO assembles, analyzes and makes recommendations on loan packages, submits its well-researched analyses and recommendations to the SBA for approval, and closes and services 504 loans. NEDCO is proud to be among the first non-profit Community Development Corporations in the country to be able to offer this unique new federal loan program to small business owners. This is an affordable economic helping hand for Pennsylvania’s small businesses at a time when they most need it. The loans are funded through the sales of debentures, which are sold publicly to investors. The debentures are 100% guaranteed by the SBA. The loans are designed for the acquisition of long-term fixed assets, such as land, buildings, machinery, and equipment, and/or the construction, modernizing, renovating, and restoring of facilities. Loan proceeds may also be used for land and site improvements, interest on interim financing, and professional fees directly attributable and essential to the project. Refinancing is not a permissible use of the loans. For a business to be eligible for NEDCO’s SBA-backed loan program, it must be a for-profit corporation, Limited Liability Corporation, partnership, or proprietorship with a net worth (including affiliates) of $6 million or less. Average net profits after taxes cannot exceed $2 million per year for the previous two years.
A relatively new initiative NEDCO is involved in is the Redevelopment Capital Assistance Program (RACP), a Commonwealth of Pennsylvania grant program administered by the Office of the Budget for the acquisition and construction of regional economic, cultural, civic, and historical improvement projects. The purpose of the grant program is to focus limited available capital funding on those projects that display significant potential for improving economic growth and the creation of jobs.
NEDCO’s Small Business First Loans are tailored to such business sectors as for-profit manufacturing, industrial, agricultural enterprise, agricultural producer, child-day enterprise, computer-related services, construction enterprises, defense conversion, hospitality enterprises, industrial, manufacturing, recycling, and research and development, among others. Businesses must have less than 100 employees worldwide at the time of application to be eligible.
NEDCO’S SUCCESS STORIES
Ertley Kia Dealership
Ertley Kia is a respected staple of the Moosic business community. The auto dealer applied and qualified for the unique new 504 loan product. NEDCO provided Ertley with a $1.2 million SBA loan program guarantee so the company could implement a new and expanded floor plan for its growing Kia auto inventory. NEDCO was pleased to have been able to invest in the hometown company’s future growth and prosperity. Since receiving financial help from NEDCO, Ertley has turned a $300,000 annual profit at a time when the auto industry continues to struggle in a down national economy.
Northeast Laminated Glass
This Carbondale, PA company manufactures high-density hurricane glass for commercial properties. In order to expand its manufacturing capabilities, Northeast Laminated Glass applied for a Machine Equipment Loan Form through NEDCO, which NEDCO was able to arrange. The expansion plan was a success and the company has since created 50 new regional jobs.
Stone Office Equipment
This Pocono Mountain, PA company provides and stores officer furniture for companies large and small. In order to expand its growing business and provide more storage capacity for its clients, Stone Office Equipment came to NEDCO for a 504 SBA Loan of $1.5 million. NEDCO was able to assist the company, which continues to grow in sales and personnel.