Lancaster County Business Expansion Gets Boost from Low-Interest Loan

Pennsylvania Department of Community and Economic Development

HARRISBURG, PA — The Pennsylvania Department of Community and Economic Development (DCED) has approved a new low-interest loan to support business growth in Lancaster County. Hoober, Inc., a farm machinery dealer, will receive a $1.5 million loan to expand its facilities.

Details of the Loan

The Pennsylvania Industrial Development Authority (PIDA) approved the fifteen-year loan at a 4.25 percent reset interest rate. Hoober, Inc. will use the funds to construct a 13,920-square-foot facility at its headquarters on Old Philadelphia Pike in Intercourse, Lancaster County. This new building will serve as the company’s headquarters, housing both technical and administrative staff.

The total cost of the project is estimated at $3 million. Hoober, Inc. has committed to creating 10 new full-time jobs and retaining 90 existing ones within the next three years. The company, founded in 1941, operates dealerships in Pennsylvania and four other states, providing equipment sales, parts, and services for agriculture, light construction, excavation, and rural homeowners.

Economic Impact

DCED Secretary Rick Siger highlighted the importance of such investments, stating, “Investing in growing companies or development that will attract new business spurs our economy, creates and retains good-paying jobs, and helps position Pennsylvania as an economic powerhouse.” He emphasized that the Shapiro Administration is committed to providing resources that help businesses succeed and communities thrive through economic development tools like PIDA.

In 2024 alone, PIDA has approved over $13.5 million in low-interest loans. These loans have resulted in nearly $23 million in private investment and have supported the creation and retention of 466 full-time jobs.

READ:  Sight & Sound Brings "DANIEL" to Movie Theaters Nationwide in Live Broadcast Event
What PIDA Offers

PIDA provides low-interest loans and lines of credit to eligible businesses that commit to creating and retaining full-time jobs. The loans can be used for various purposes, including:

  • Land and building acquisitions
  • Construction and renovation costs
  • Machinery and equipment purchases
  • Working capital and accounts receivable lines of credit
  • Multi-tenant facility projects
  • Industrial park projects
Fostering Economic Growth

The approval of this loan for Hoober, Inc. represents a broader effort to bolster economic growth in Pennsylvania. By supporting business expansions, the state aims to create a more vibrant economic landscape. The addition of new jobs not only benefits the local community but also stimulates economic activity in the region.

Moreover, low-interest loans make it easier for businesses to undertake significant projects without being burdened by high-interest rates. This financial support can be crucial for companies looking to expand their operations, invest in new technologies, or enter new markets.

Benefits of Hoober, Inc.’s Expansion

The expansion of Hoober, Inc.’s facilities is likely to bring multiple benefits. It will enhance the company’s ability to serve its customers more efficiently, provide better working conditions for its employees, and contribute to the local economy through job creation. Additionally, the new facility could attract further investments in the region, setting a precedent for other businesses considering expansion.

By offering financial support through PIDA, Pennsylvania is sending a strong message about its commitment to economic development. As more businesses take advantage of these opportunities, the state could see increased industrial growth and a more robust job market.

The approval of the low-interest loan to Hoober, Inc. is a significant step in fostering economic development in Lancaster County. As the company moves forward with its expansion plans, the local community stands to gain from new job opportunities and enhanced economic activity. This initiative reflects Pennsylvania’s ongoing efforts to support business growth and strengthen its economy.

READ:  Goldman Sachs to Acquire Majority Stake in TAIT

For the latest news on everything happening in Chester County and the surrounding area, be sure to follow MyChesCo on Google News and Microsoft Start.