Fay-Penn receives development boost
Fay-Penn Economic Development Council just got $1.1 million more for one of its chief development tools. On Thursday, Fay-Penn officers accepted a grant from Pennsylvania that will boost its revolving loan fund (RLF) to $13.5 million. Fay-Penn uses the RLF to fund capital expansion projects at low interest rates.
“Fay-Penn is our lead economic development organization and this money shows the confidence the state has in how well it has operated and used state funds to sustain our existing business and bring new industry into the county,’ said state Sen. Richard J. Kasunic (D-Dunbar), who presented the grant to Fay-Penn.
“We are fortunate that the state is investing funds in our area to support economic development. All of the monies that Fay-Penn has received from the state have been put to good use. I will continue my efforts to support programs offered by Fay-Penn because we know that jobs will be created and private capital investment will be generated to enhance the future of Fayette County residents,’ Kasunic added.
Fay-Penn’s annual report shows the RLF has helped in financing 114 projects involving more than $40 million in private investment that has resulted in the creation or retention of more than 3,600 jobs in Fayette County.
Leo T. Krantz, Fay-Penn chairman, said that the efforts of all state lawmakers representing Fayette County have helped the RLF grow beyond targeted goals.
“Completing 114 projects over the last 12 years, almost 10 per year, represents a significant accomplishment. It takes a large commitment of staff time and resources working with the local banks, business owners and volunteers who serve on the Fay-Penn Loan Review Committee to make this program work,’ Krantz said.
“We are pleased with what has been accomplished through the RLF over the last 12 years,’ Mike Krajovic, Fay-Penn president, said. “Fay-Penn’s mission is to maintain and increase employment opportunities in Fayette County in an effort to improve the quality of life for all residents. The RLF is just one way we are able to do this.’
As loans are repaid, Linda Yuhaniak, Fay-Penn’s account manager, said, “The funds are put back into the RLF for use by other companies. It is satisfying to see that by providing a high level of service, many local companies call on Fay-Penn to help fund expansions time and time again.’
Krajovic explained the RLF has grown from $1 million at its founding in 1993 to the present $13.5 million. “We have as a goal reaching $15 million by 2010 so you can see how much the support from the state has meant to us. We have a good track record with what we have done with the money,’ Krajovic said.
The RLF is made up of seven different loan programs that assist eligible businesses with low-interest loans. Krajovic said in some cases the businesses aren’t able to get all the money they need through conventional sources so the RLF helps by taking on more risk than private banks would.
“Many of the businesses assisted through the RLF would not have undertaken such business expansions without this financial resource. Often, the RLF provides last gap financing to complete a project,’ he said.
Krajovic noted that none of the money is used for Fay-Penn administration as it all goes into the RLF.
Kasunic explained that Fayette County has depended on the state for money “to help bring ourselves up.
“Fourteen years ago, when Fay-Penn was formed, we asked the state for a helping hand because we can’t generate that kind of money locally’ to put into a revolving loan fund, Kasunic said. He added that Fayette County never was prepared for the decline of coal and steel jobs and for years suffered economically.
“We have been working to catch up. This organization (Fay-Penn) has given us a new outlook on life by sustaining jobs, marketing to bring in new jobs and through education and job training to create the skilled work force we will need for the future,’ Kasunic said.
“I am talking about skilled, high-tech jobs that can help keep our young people here. Fay-Penn works with high schools, colleges and universities and the business sector to learn what their needs are. And other people outside our county get inquisitive when they learn about what is going on in Fayette County, which helps bring us to their attention,’ Kasunic said.
For more information about Fay-Penn and its programs, call 724-437-7913.