Fay-Penn Economic Development helped retain, create 141 jobs in 2016
What does a meat-processing plant in Mill Run, a second insurance company office in Carmichaels, a pet-grooming business on Route 40 in Uniontown and a brewery have in common?
They’re all 2016 recipients of financial aid from Fay-Penn Economic Development Council’s $15 million revolving loan, which dispensed 12 small-business loans totaling $1.62 million.
Overall, the loan fund is capable of making disbursements between $5,000 to $750,000.
“The more money that gets into the hands of small businesses, the better our economy,” said Bob Shark, executive director of Fay-Penn.
The 12 loans made by Fay-Penn created 23 new jobs and helped retain 118 existing jobs in 2016, said Jessica Firmstone, Fay-Penn’s loan program coordinator.
Firmstone said most of the connections Fay-Penn makes with small businesses needing a cash infusion or start-up capital is through word of mouth. In some cases, the referral will come from banks.
“But, we don’t compete with banks,” she said.
Money from Fay-Penn last year, for example, enabled May’s Meat Processing LLC to buy equipment for a business expansion and additional building space for the slaughtering and butchering of meat, as well as a retail shop where customers can purchase freshly butchered meat.
“Because demand for fresher, higher-quality meats is on the rise, there is a greater need for customized butcher shops,” said owner Kim May, who added two full-time and two-part time jobs.
With the loan from Fay-Penn, Townsend Insurance Services, 7829 National Pike, was able to open a second location in Camichaels. Plus, Ruffin’ Around Resort & Day Spa LLC was able to add overnight boarding and pet grooming services to its services, Firmstone said.
Also, Fay-Penn provided financial assistance last year to Laurel Highlands Brewing LLC, a start-up brewery formed by Robert Kotarsky and Matthew Smiley. The loan was for brewing equipment and working capital. The Enamel Street business, which will employ four, is scheduled to open in the summer and will initially be “distribution only” to area restaurants and taverns, Fay-Penn said.
Firmstone said Fay-Penn will make loans Fayette County companies looking to expand into Westmoreland, Greene or Somerset counties, all of which do not have revolving loan funds, if jobs can be generated. The process also works in reverse for companies in those three counties who want to expand into Fayette and create jobs. The turnaround time for a typical loan can be six weeks, she added.
“We are aiming to make 15 loans this year,” said Firmstone, adding there are already small-business loans pending in Fay-Penn’s pipeline. These are for a fitness and wellness center, a hair salon, a glass manufacturer and an excavating company, she said.
On a related matter, Firmstone said Fay-Penn is in the process of becoming a Community Development Financial Institutions Fund, a federal program administered by the Treasury Department. This will give Fay-Penn’s loan program access to a larger capital pool to provide credit and financial services to under served markets. Approval is expected by summer, she added.