LOAN PROGRAM

MRC Loan Financing Programs

Do you need help in getting your company to the next level?
Sometimes small and mid-size companies need someone to strategize how to grow, where to grow, how to remain lean in the growth process and how to get a leg up on the competition. MRC can help you get to the next level profitably with our portfolio of services, especially our Business Growth Services and Lean6 transformation services.

How can you defray important growth costs?
We know that outside assistance comes with a financial investment that can also be a cost burden when your company is trying to grow. To pursue your growth needs and defray the costs, you should consider applying for one of the MRC Loan Financing Programs: the MRC Short Term Loan or the MRC Long Term Loan.

How do you qualify?
Your company must be an existing manufacturer located in Lehigh, Northampton, Berks, Carbon or Schuylkill counties with fewer than 500 employees. In addition, the project must qualify as a state reportable project which means that it cannot be for the purchase of a building, computer software, or equipment. However, projects for market research, strategic planning, Lean6, market or product development and other needs qualify for this financing. These types of projects are just the tools that help your company grow, transform, and succeed.

The MRC Short Term Loan

MRC announces a special financing program for smaller projects. The purpose of supporting these types of projects is to help manufacturers address immediate needs while not impeding their cash flow.

Terms of the Loan
The length of the loan is for one year. The loan amount is two-thirds of the project cost from a minimum of $4,000 on a project costing $6,000 to $10,000 on a project costing $15,000 or more. Interest on the loan is calculated at the going prime rate (at the time of the loan application) minus 2 percent, with a minimum rate of 3.5 percent. The loan is for one project per application, but multiple loans are allowed as long as the total outstanding balance is $15,000 or less.

Loan Application Process
The process of obtaining the loan is simple: The applicant fills out a short application form, undergoes a credit check to determine ability to repay the debt and, if approved, signs an unsecured note in the amount of the loan. The client pays one-third of the project amount during the life of the project. The remaining two thirds plus interest is invoiced quarterly during the year after the project is completed. If the loan payments are made on time, all interest is forgiven.

The MRC Long Term Loan

What does this loan cover?
It helps cover up to 50% of project costs for larger projects and spreads the payments over three years. The loan size can be $10,000 to $30,000 for projects and companies that qualify. The interest rate is Prime minus 2% with a minimum rate of 3.5%.

How do you apply?
1. Contact the MRC to determine the scope and cost of your project or projects in a written proposal detailing the provider – MRC or a third-party consultant. Both types qualify.
2. Complete a one-page MRC Loan Application including company background, ownership information and the estimated benefit of the project to your company.
3. Just as with any loan, your will need to supply three years of financial statements and the most recent interim statement. Note: All financial data is kept confidential.
4. The MRC Loan Committee reviews the application and the results of your credit check.

What is the loan approval process?
Upon approval by the Loan Committee, MRC will mail for your signature:
1. Unsecured Note – if your company is incorporated, must be witnessed and sealed with your corporate seal
2. Assistance Agreements – contract between you and MRC to agree on the scope and terms of the project. (If the project is subcontracted to a third-party consultant to deliver the services, then the consultant and MRC must sign separate consulting services contracts.)

Note: A company can pre-qualify for a loan to cover multiple projects. Click here for an example of the pay down.

What are the payment terms?
Over the course of the project, the client is invoiced for their immediate share of the project costs (at least 50%) and the balance of the client share is drawn down against the loan. Interest begins to accrue on the amount drawn down. Semi-annual payments of accrued interest and 16.66% of the loan principal begin six months after the project completion or 18 months after the start of the project, whichever comes first.

MRC Loan Financing Application - Print and Fax (610-758-4716) or email to info@mrcpa.org