February 16, 2021

Enhanced Capital Pennsylvania Rural Fund Program


The Commonwealth of Pennsylvania has created the Rural Jobs and Investment Tax Credit Program (the “Program”).  Authorized under the Tax Reform Code of 1971, the Program is an investment tool designed to provide small businesses in rural areas access to capital.   

Enhanced Capital Pennsylvania Rural Fund (“ECPRF”) is a $12.5 million fund providing loans to eligible Pennsylvania-based small businesses in designated rural areas. ECPRF will provide loans ranging from $500,000 to $2,500,000 to promote growth for qualifying companies. Loan terms and pricing are flexible for those qualifying enterprises that help achieve the Program’s goals of increased employment and economic activity in underserved rural communities.  Specifically targeted industries are manufacturing, plant sciences, services, technology, and other industries in rural areas that are highly beneficial to the growth of the Commonwealth.

For questions or if you need assistance with this application, please email aeick@enhancedcapital.com


Who is eligible to receive a loan from ECPRF?

  1. Qualifying companies must have fewer than 150 employees and less than $15M in net income in the preceding tax year. 
  2. Companies must be categorized in one of the following industries: manufacturing, plant sciences, services, technology, or other industries highly beneficial to the growth of the Commonwealth.
  3. Companies with the ability to repay the loan.
  4. Companies not located in a city with a population of more than 50,000 or an urbanized area contiguous and adjacent to a city that has a population of more than 50,000 inhabitants.
  5. Companies located in an area determined to be rural by the United States Department of Agriculture. The definition for rural can be found on the USDA’s webpage.

What are the typical terms of ECPRF's loans?

Typical loan terms are outlined below:

  • Loan Amounts: $500,000 to $2,500,000
  • Loan Seniority: Loans can be senior or subordinated to existing loans from banks or other lenders
  • Loan Duration: Loans will carry a minimum maturity of six (6) years
  • Interest Rate: Determined by the credit quality of the business
  • Loan Amortization: Interest only for the first two years with flexible amortization thereafter

How will selections be made?

Applications will be reviewed to determine whether the applicant meets all eligibility requirements and selections will be made competitively based on:

  • The impact of the business on and its contribution to the Pennsylvania economy and community
  • The impact of the proposed funded activities
  • The company’s ability to repay the loan, based on standard metrics of collateral coverage, cash flow projections, and compliance with financial covenants
  • Financial need

What are eligible uses for the proceeds from the loan?

Eligible uses of proceeds from the loans include operating expenses, salaries, purchasing equipment and machinery, accounts payable, inventory, rent, refinancing, reopening costs, critical repairs/maintenance, adaptive upgrades, technical assistance, marketing support, paying fees and expenses and general working capital.

How long will it take to process a loan?

About 60 days depending on the complexity of the transaction. 

What is the Rural Jobs and Investment Tax Credit Program?

The Pennsylvania Rural Jobs and Investment Tax Credit Program was established by the Commonwealth of Pennsylvania to stimulate investment into rural communities.  Enhanced Capital Pennsylvania Rural Fund has been approved as a participant to provide up to $12.5 million in loans to eligible small businesses in Pennsylvania.

What is the loan application timeline?

Applications will be accepted on a rolling basis with no specific deadline until Enhanced Capital Pennsylvania Rural Fund has been fully invested.

What are regulatory reporting requirements for companies that receive a loan?

  1. The number of jobs created and retained by each rural business reported monthly
  2. The average hourly wage of all employees reported monthly
  3. Any other information required by the Commonwealth


Phone: 412.208.6246

Address: 6425 Living Place, Suite 200, Pittsburgh, PA 15206

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