Business Financing Program

Machinery & Equipment Loan Fund
(MELF)

Where to Apply EDC Finance Corporation is available to assist the borrower with processing the MELF application (see fees at left). The applicant can apply directly to the Commonwealth for a MELF loan by completing the online Single Application for Assistance. Call 717-397-4046 for additional information or with questions: John Biemiller, vice president Lyle Hosler, project manager

MELF Program Summary

Low-interest loans

• to acquire and install new or used machinery and equipment
• to upgrade existing machinery and equipment

Eligibility

Businesses of all sizes in

• Manufacturing
• Industrial
• Agricultural enterprises
• Direct mining operations
• Information technology
• Biotechnology
• Medical facilities (A medical facility may only use MELF funds for the acquisition and installation of equipment and technology necessary to comply with FDA requirements regarding pharmaceutical management.)

Uses and Purposes of Funding

• Machinery and equipment acquisition and upgrading (new and used); directly related engineering and installation costs
• Project must be directly related to the business process or activity
• Titled equipment is ineligible

Amounts

• Up to $5 million or
• 50% of the total eligible project costs, whichever is less

Terms

• Interest rate: 10-year U.S. Treasury rate plus 100 basis points
• Up to 10-year term, depending upon the useful life of the machinery being financed
• $25,000 cost per job retained or created
• Private-sector match required

Fees

• 1.0% MELF commitment fee ($10,000 cap)
• $750 application fee (if EDC Finance Corporation processes application)
• $750 closing assistance fee (if EDC Finance Corporation assists with loan closing)

Guidelines

Machinery and Equipment Loan Fund (MELF) Program Guidelines