Assistance Program for Minority, Women-Owned Businesses Expands to Southwest PA

Release Date: Sep 22, 2008  |  Author: Steve Weitzman

HARRISBURG -- A pilot program to provide financial and technical assistance to minority- and women-owned small businesses is being expanded to 15 counties in western Pennsylvania, the state’s top economic development official said today.

“We’re expanding our financial and technical assistance to an ever-widening circle of new and emerging entrepreneurs,” said Department of Community and Economic Development Secretary Dennis Yablonsky. “Their efforts are critical to creating jobs and strengthening our economy.  By making these new resources available, we’re working to help minority- and women-owned businesses tap into new markets and meet their full potential.”

The Business Opportunity Fund, rolled out in March as a pilot program in 13 central Pennsylvania counties, already has committed nearly $600,000 in loans to five small businesses and has 17 other qualified applicants pending, Yablonsky said.

“The interest and the activity around the program in its first few months tells us that we’re on the right track,” said Yablonsky.

The program will now expand to 15 counties in western Pennsylvania to provide funding and technical assistance to eligible businesses for working capital, equipment, commercial real estate acquisition and government procurement.

The expanded area covers Allegheny, Armstrong, Beaver, Butler, Clarion, Crawford, Erie, Fayette, Greene, Indiana, Lawrence, Mercer, Washington and Westmoreland counties.

Any small business may apply; the program will give priority to small businesses requiring capital and technical assistance to compete for governmental and private sector contracts.

Often small minority- and women-owned businesses do not have access to technical assistance or financing tools from traditional financial institutions.  That lack of access can prevent them from competing fully in the marketplace.

The expansion will create a second geographically-defined $2 million fund, consisting of $1 million from Pittsburgh-based Bridgeway Capital and another $1 million–$500,000 in loans and $500,000 in grants–from the Pennsylvania Community Development Bank, which DCED administers. Bridgeway Capital, an economic development lender focused on driving business growth and new jobs, will administer the program in southwestern Pennsylvania.

“The program will put additional capital to work for entrepreneurs and growing small businesses across the region,” said Mark Peterson, president of Bridgeway Capital.  “We are pleased to be part of this collaboration and the program represents an important step toward our mission of making western Pennsylvania a thriving region for all.”

To date, Bridgeway Capital has made more than $55 million in loans to small businesses across western Pennsylvania.  

The Business Opportunity Fund was developed cooperatively between DCED, the Department of General Services, Community First Fund and Bridgeway Capital. The central Pennsylvania Business Opportunity Fund is administered by the Lancaster-based Community First Fund.

The Department of General Services’ Bureau of Minority-and Women Business Opportunities will make referrals for loan financing.

“We are delighted to be a part of this expansion into western Pennsylvania,” said DGS Secretary James P. Creedon. “Our Bureau of Minority and Women Business Opportunities continues to advance its mission to foster the continued growth of these small businesses and to help them compete for larger state contracts.”

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