In 2005, Mifflin County was awarded $99,000 from the U.S. Department of Agriculture’s (USDA)Rural Development division to establish a Revolving Loan Fund Program. The purpose of the Revolving Loan
Fund is to encourage business retention and expansion. The program will focus on new and existing businesses located in the Greater Lewistown area comprised of Burnham Borough, Derry Township, Granville Township, and Lewistown Borough. The program goal is to create or save one job for each $10,000 loaned. The maximum loan amount is $50,000.
To begin the program, discussions were held with local banks and the Penn State Small Business Development Center. It was decided that Mifflin County would partner with local banks as a loan participant. Based on this consultation and a meeting with lending institutions in Mifflin County in November 2005, general guidelines were developed. The Small Business Development Center played an important role in developing the guidelines. The following guidelines were reviewed and accepted by The Juniata Valley Bank,
Kish Bank, Mifflin County Savings Bank, and Omega Bank:
1. Mifflin County will partner with a lending institution through a participation loan. The goal is for the county to have a shared first position based on the county’s participation level with the lender.
2. The loans will have to be bankable from the banks’ standpoint.
3. The applicant must complete Mifflin County’s loan application and the required bank loan forms. If the applicant is a new business, a business plan, three-year proforma, tax returns for the past two years, a credit report, an implementation schedule, proof of business insurance, staffing information, and coordination with the
Penn State Small Business Development Center will be required.
4. Mifflin County will adjust the interest based on a graduated rate schedule starting with 0 percent the first year, 1 percent the second year, 2 percent the third year, and up to 3 percent the fourth and fifth years. The maximum term of the loans will be 5 years. The process will effectively lower the overall interest payment for the applicant.
5. The partnering bank will receive the loan payments, manage the account, and separate the county portion to be re-deposited into the revolving loan fund.
6. Mifflin County will coordinate with USDA on all proposed loans to ensure they meet the guidelines.
For more information please contact the Mifflin County Planning and Development Department.