Loans, Grants, & Tax Credits
Economic Development programs can be found here.
LERTA (10-Year, 100% Tax Abatement)
Lackawanna County, Pennsylvania offers many opportunities to invest and grow your business and real estate portfolio. The Local Economic Revitalization Tax Assistance Program (LERTA) offers incentives to residents, investors, developers and business owners considering investing in new construction or building improvements located within the City of Scranton and surrounding areas.
The City of Scranton, in conjunction with the Scranton School District and Lackawanna County, passed a LERTA abatement on all residential, commercial and industrial properties located within the City. LERTA approved projects will receive a 10-Year, 100% Tax Abatement on owner improvements to properties within the confines of the city. Tax exemption applies to the improvements to the land or building only and is subject to standard tax rates and terms.
LOCAL SHARE ACCOUNT (LSA)
The City of Scranton is an eligible applicant for the Local Share Account-Monroe County funds made available by the PA Race Horse Development and Gaming Act for the purpose of distributing the 2% of gross terminal revenues from Mount Airy Casino Resort. These guidelines were established to provide information and guidance to project managers interested in applying for funding.
REDEVELOPMENT ASSISTANCE CAPITAL PROGRAM (RACP)
OECD has funding under the Redevelopment Assistance Capital Program (RACP), which is administered by the Commonwealth of Pennsylvania, Office of the Budget. The RACP projects are state-funded projects that cannot obtain primary funding under other state programs.
Eligible Uses of Funds
- Economic development projects that have a regional or multi-jurisdictional impact and generate substantial increases in employment, tax revenues, or other measures of economic activity.
- Included are projects with cultural, historic, or civic significance.
- Projects with total costs no less than $1,000,000
REVOLVING LOAN FUND (EDA-RLF)
Revolving loan funds (RLFs) make loans to businesses that cannot otherwise obtain traditional bank financing. Applicants must be private, for profit businesses. Borrowers must demonstrate that credit is not otherwise available on terms and conditions that permit the completion or successful operation of the activity to be financed. The maximum EDA loan amount will be $250,000 however loan can be no more than 30% of the total project costs
LOAN TO GRANT PROGRAM (HUD)
This federally funded gap loan program was developed to enhance job creation by providing assistance to existing businesses looking to expand, for starting up a new business, or for businesses looking to relocate to Scranton. As per the U.S. Department of Housing and Urban Development (HUD) guidelines, borrowers must create one full time equivalent job for every $35,000 borrowed. If job creation and guidelines are met, the loan can transfer to a grant, with no repayment necessary.