Bloomsburg may receive $500K home rehab grant

The Town of Bloomsburg anticipates applying for a 2020 $500,000 housing rehabilitation grant and interested residents should apply now to get on the waiting list for the no-cost repairs.

If awarded, eligible residents may receive up to $65,000 each for home repairs.

Interested residents may call SEDA-COG’s Stacy Anderson at 800-326-9310.

Eligible repairs include structural, roofing, plumbing, electrical, heating/furnace, window replacement, radon and lead-based paint mitigation, and energy-related improvements. Also included are modifications for mobility-impaired residents. There is no cost to homeowners who maintain home residency over a five-year period from the date of signing.

SEDA-Council of Governments (SEDA-COG) manages the entire process for the homeowner, said Teri Provost, director of the agency’s Housing Rehabilitation program.

“The homeowner not only can get necessary home repairs but go through the process hassle-free as we manage the process,” Provost said.

Qualifications:

  • Own the home or have Life Rights to live in it;
  • Meet income qualifications based on household size;
  • Be current on local taxes and municipal utility bills;
  • Provide proof of homeowner’s insurance;
  • Live in the home an additional five years.

Additional requirements may apply.

Annual Gross Income Limits:
Family size: 1 – $36,800; 2 – $42,050; 3 – $47,300; 4 – $52,550; 5 – $56,800; 6 – $61,000; 7 – $65,200; 8 – $69,400.

Heating units repaired at no cost for qualifying residents

With colder weather arriving, SEDA-Council of Governments (SEDA-COG) offers a Crisis program to residents who qualify for fuel assistance, the Low Income Home Energy Assistance Program (LIHEAP).

The Crisis program repairs a malfunctioning heating unit at no cost. This program runs from Nov. 1 to April 10.

Mandy Fox, chief of SEDA-COG’s Weatherization program, said this is an important offering of which many people aren’t aware.

“Many people don’t know we offer a program that can resolve their heating emergency at no cost, if qualified. Our subcontractors respond to these heating emergencies 24 hours a day, seven days a week providing clients with one warm room until the issue is resolved,” Fox said.

For residents whose heat source is malfunctioning, they should call their county assistance office. The county assistance office will forward the completed referral to SEDA-COG to assign to a subcontractor.

SEDA-COG’s Weatherization program serves a seven-county area: Columbia, Juniata, Mifflin, Montour, Perry, Snyder, and Union.

If residents don’t qualify for LIHEAP or Crisis assistance, they may still qualify for SEDA-COG’s Weatherization services. SEDA-COG’s Weatherization services may provide furnace repair, although it is not immediate help, as it would be through Crisis.

CRISIS INCOME ELIGIBILITY GUIDELINES

Family size: 1 – $18,735; 2 – $25,365; 3 – $31,995; 4 – $38,625; 5 – $45,255; 6 – $51,885; 7 – $58,515; 8 – $65,145.

COUNTY ASSISTANCE OFFICES

Columbia: 570-387-4200
Juniata: 717-436-2158
Mifflin: 717-248-6746
Montour: 570-275-7430
Perry: 1-800-991-1929
Snyder: 570-374-8126
Union: 570-524-2201

Glass House Inn has new ownership thanks to SEDA-COG financing

ERIE – The Glass House Inn is under new ownership, thanks to a loan partnership with SEDA-Council of Governments (SEDA-COG) and Northwest Bank.  

Nigam Bhavsar bought the motel at 3202 W. 26St. from the prior third-generation owners with this financing. The inn had previously been updated including the carpeting, mattresses, and 32-inch TVs in each room, along with offering free Wi-Fi. The inn also has a well-maintained outdoor pool.  

As a result of the project, two full-time jobs will be created.  

The loans through SEDA-COG offered the low interest rates and long terms Bhavsar needed to make his business endeavor successful.  

The $281,700 Small Business Administration (SBA) 504 loan offered a fixed 20-year low interest rate, and the $60,000 SEDA-COG TEAM loan also had the benefit of a fixed low interest rate.  

Bhavsar said John Reichard, SEDA-COG senior relationship manager, was helpful throughout the process.  

“Everyone at SEDA-COG was very responsive and professional when answering all my questions. John Reichard was very knowledgeable with the SBA 504 program and walked me through the details of the program,” Bhavsar said.  

Northwest Bank partnered with SEDA-COG on the project with most of the financing.  

Paul Kruszewski, Northwest Bank business banker, said the partnership made for a “winning solution” for the borrower.  

“SEDA-COG was instrumental in providing a financing solution for Dattam Hospitality LLC (Nigam Bhavsar). By offering an attractive rate and borrower-friendly terms, Northwest and SEDA-COG provided a winning solution to our borrower,” Kruszewski said. “The staff at SEDA-COG was very timely and informative, allowing for an easy loan approval process. I look forward to partnering with John Reichard and SEDA-COG on future opportunities.”  

For more information about the Glass House Inn, visit www.glasshouseinn.com.  

To start a financing partnership with SEDA-COG, call 1-800-332-6701 and ask for the Business Finance department or email John Reichard at jreichard@seda-cog.org.  

Northwest Bank is a full-service financial institution that offers a complete line of personal and business banking products, loans, investment management, trust and insurance services and employee benefits from 172 full-service locations across Pennsylvania, New York, and Ohio. Northwest Bancshares Inc. is the holding company of Northwest Bank and is listed on the NASDAQ Global Select Market as NWBI. For more information, visit www.northwest.com.  

SEDA-COG’s Business Finance Department serves the entire state of Pennsylvania for the SBA 504 program. For Pennsylvania Industrial Development Authority (PIDA) and SEDA-COG loans, SEDA-COG serves 11 central Pennsylvania counties: Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, and Union.

Small business loan program hits record-low interest rate

Good news for new or expanding businesses – a federal loan program’s interest rate is the lowest in the program’s history.

The Small Business Administration (SBA) 504 loan program’s 20-year effective fixed rate for June is 3.98%, the first time it has fallen below 4%. Rates for other term options are also at or near recent lows. The rates have decreased for the past six months and have been below Prime for seven months. Rates are set monthly for loans that have closed the previous month.

SEDA-Council of Governments (SEDA-COG) partners with banks to offer businesses statewide this long-term, fixed-rate financing that can be used to acquire fixed assets for expansion or modernization or to refinance existing real estate or equipment debt. SBA 504 loans can be as small as $100,000 up to $5 million (in some cases $5.5 million).

Benefits of SBA 504 loans:

Long-term, fixed-rate financing (10 years for equipment and 20 or 25 years for real estate)

Lower down-payment vs. conventional financing (as low as 10% for existing businesses)

Financing up to 40% of eligible costs (land and building purchase, building construction, building renovations, equipment, refinancing of real estate or equipment debt)

Loan is fully amortized (no balloon payment)

Reduces risk for the partnering lender

For-profit businesses with a net worth less than $15 million and net income less than $5 million may be eligible. For real estate financing, the business must occupy a majority of the space.

John Reichard, SEDA-COG senior relationship manager, said the SBA 504 loan program is a proven success and win-win-win for the small business, the community and participating lenders.

“Businesses tell us again and again how the SBA 504 low interest rates and long terms help with cash flow and empower them to expand when it otherwise might have been difficult,” Reichard said. “This in turn promotes economic development in our communities.”

SEDA-COG provides SBA 504 loans throughout the state of Pennsylvania. For more information, visit www.sedacogldc.org or call 570-524-4491 and ask for the Business Finance Department.