Governor Edward G. Rendell today announced that Pennsylvania is investing $875,000 to support minority-owned small businesses throughout the commonwealth and create 16 new jobs.

"Throughout the last three years, we have worked to build a stronger economy by investing in our businesses and communities," Governor Rendell said. "We are helping to create new opportunities for our working men and women while we create an environment where businesses can grow and prosper.

"We are using our innovative economic stimulus packages to support and encourage new businesses. As a result of our efforts, Pennsylvania has added 117,000 jobs since 2003, reaching an all-time high job count of 5,742,300.

"By providing minority-owned enterprises with technical and start-up assistance, we are strengthening Pennsylvania's economy and creating new jobs. The success of minority-owned firms is crucial to our economic growth, and this is just one example of how we're working to ensure that success," Governor Rendell said.

The Pennsylvania Minority Business Development Authority is designed to stimulate the creation, retention and expansion of minority-owned businesses through low-interest financing for land and buildings, machinery and equipment, working capital, capital acquisition, technology commercialization, government marketing and new market identification.

PMBDA recently implemented a Revolving Loan Fund Capitalization Program to better serve the commonwealth's minority businesses.

The program partners with selected lending institutions that have demonstrated a high level of success when lending to minority-owned businesses. PMBDA will capitalize programs selected with funding at nominal interest rates with extended repayment terms.

The following loans were approved through the PMBDA Revolving Loan Fund Capitalization Program:

Allegheny County

The Progress Fund will receive a $200,000 loan to develop a revolving loan program to serve the minority communities in the 39-county northern and western Pennsylvania region. In 2001, DCED and PCD Bank awarded the Progress Fund its first "Community Building Award" for achievement and excellence for successfully implementing programs that support a better quality of life for Pennsylvanians.

Northampton County

The Lehigh Valley Economic Development Corporation will receive a $200,000 loan to develop a revolving program for minority businesses located in Lehigh and Northampton counties.

Philadelphia

The African-American Chamber of Commerce of Pennsylvania, New Jersey and Delaware will receive a $200,000 loan to develop a revolving loan program for minority businesses located in the Greater Philadelphia region. The new program is expected to complement an existing program, the Chamber's Emerging Contractor's Program, which currently provides working capital loans and technical assistance to minority contractors, retail and service businesses.

The following loans were approved under PMBDA's Direct Loan Program:

Crawford County

The Laser Cosmetic Center of Meadville, P.C. was recently opened by four physicians who operate Meadville OB/GYN Associates. The Laser Center will receive an $87,500 loan to help fund the purchase of a Scope Gemini Laser used for permanent hair reduction and laser treatments of the skin and face. The total project cost is $250,000. The Laser Center projects to add seven full- time jobs within the next three years.

Cumberland County

Fusion Inc. will receive a $187,500 loan to renovate the Rodeway Inn in New Cumberland, a national franchise operation under Choice Hotels International. The funds will be used for roof repairs, an exterior facelift and the replacement of the swimming pool. The company currently has four full- time employees and is expected to create nine new jobs.

For information on PMBDA and other Department of Community and Economic Development funding, visit http://www.newpa.com or call 1-866-GONEWPA (1-866-466-3972).

The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us.

CONTACT:

Kate Philips

717-783-1116

Ashley Conjar (DCED)

717-783-1132

Source: prnewswire