LOAN PROGRAM

MRC Loan Financing Options

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 sustain their competitive edge. MRC can help you get to the next level profitably with our portfolio of services, especially our Business Growth Services, Lean6® Transformation, and Sustainability 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 while not impeding your cash flow; you should consider applying for one of the MRC Loan Financing Programs: the MRC Short Term Loan or the MRC Long Term Loan. You can even pre-qualify for a loan to cover multiple projects as long as the total outstanding balance is $30,000 or less.

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

How do you get started?
Contact the MRC to obtain a written proposal for your project needs, including the scope and cost of your project or projects and the provider – either MRC or a third-party consultant. Both types qualify. Then determine whether the MRC Short Term or the MRC Long Term Loan is right for you.

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


The MRC Short Term Loan
Terms
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 a maximum of $20,000 on a project costing $30,000 or more. The interest rate is Prime minus 2% with a minimum rate of 3.5%.  If the loan payments are made on time, all interest is forgiven!

Application Process
The process of obtaining the loan is simple: You fill out a short application form, undergo a credit check to determine your ability to repay the debt and, if approved, sign an unsecured note in the amount of the loan. You pay 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. Interest begins to accrue on the amount drawn down. If the loan payments are made on time, the interest is deducted from the final invoice.

The MRC Long Term Loan
Terms
It helps cover up to 50% of project costs 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%.

Application Process
The process of obtaining the loan is simple: You fill out a short application form, supply three years of financial statements and your most recent interim statement (All financial data is kept confidential.), undergo a credit check to determine ability to repay the debt and, if approved, sign an unsecured note in the amount of the loan.
Over the course of the project, you will be invoiced for your immediate share of the project costs (at least 50%) and the balance will be 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.

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