PITTSBURGH, October 2, 2006– Western Pennsylvania’s businesses can “raise the roof” a bit more easily than before, thanks to Community Loan (CL) Fund’s new bridge loans for companies renovating or constructing new facilities.

 

Announced today as the result of a loan from Citizens Bank to CL Fund, this unique product will give businesses access to a streamlined source of financing for their expansion projects.

 

“We are fortunate to have Citizens Bank’s support with this line of credit,” said Mark Peterson, Executive Director of CL Fund. “We can continue to help support economic development by investing in companies with the potential to bring income and jobs into the region.”

 

CL 504, an affiliate of CL Fund, provides SBA 504 loans to companies with an opportunity to expand by renovating or constructing new facilities, or by buying buildings or equipment. The 504 loans provide long-term financing, available when construction is complete. Using the line of credit from Citizens Bank, CL Fund can now provide construction financing to businesses that have been approved for a 504 loan.

 

According to Peterson, the Fund is the only certified development company (CDC) in western Pennsylvania offering bridge loans for the 504 program. Growing businesses will now have streamlined, direct access to financing for construction, thus bridging the funding gap until the 504 funds are available. This will also benefit the banks that partner with CL 504 to provide long-term financing for these businesses. 

 

“Small business is the economic engine that fuels our economy and creates the most new jobs for our workforce,” said Ralph Papa, President of Citizens Bank of Pennsylvania. “By partnering with the CL Fund, we’ll continue to strengthen our investments in initiatives designed to stimulate our local economy and create new jobs.”