A state program that underwrites the development of industrial sites in the region is making a comeback in the new state budget. The Department of Community and Economic Development Secretary Dennis Davin recently announced to recapitalize the Business in Our Sites (BOS) program announcing that the Wolf Administration was successful in securing critical funding to support business development efforts.
Governor Wolf was successful in securing critical revenue for an important business development program with the completion of the 2016-17 budget. The budget transfers unused funds from two other development programs to reactivate the grant portion of the business sites program that will give Pennsylvania a competitive edge through this action and the creation of an arsenal of ready-to-go sites for development opportunities.
The 2016-17 budget package includes $75 million to recapitalize the Business in Our Sites program to allow Pennsylvania to compete for business expansions and relocations by providing patient capital to create shovel-ready sites for business development. BOS will be recapitalized through underutilized Commonwealth Financing Authority (CFA) programs.
It is projected that the recapitalization will create 6,519 jobs and spur $487.2 million in private investment in the commonwealth. Since 2004, projects funded through this initiative have created more than 22,000 jobs and secured $2.2 billion in private investment.
The Business in Our Sites program was initially funded through the issuance of bonds in 2004 with $100 million devoted for grants and $200 million for loans. To date, all grant money for the Business in Our Sites program has been exhausted. All loans issued after the initial disbursement of the $200 million are funded through a revolving loan fund program and are capitalized through loan and interest repayments. The new allocation provides the opportunity to utilize up to one-third for grant funding.
For more information on the Business in Our Sites program and additional business assistance programs, visit www.newPA.com.
For more information about the Governor’s Action Team or DCED visit www.newPA.com