Ready to grow? GRCA can help!

Ready to grow?

GRCA can help!

By Aaron Gantz, Senior Director of Economic Development, GRCA

The Greater Reading Chamber Alliance (GRCA) team works to set businesses up for success in Berks County. The economic development team works to bring the necessary tools and resources to the table to help companies locate or grow their business in our community. Whether a company is seeking information to better understand its customer, looking for a property to accommodate relocation or expansion or requires assistance with financing, our team has the resources to make it happen.

Through GRCA’s affiliate organization, the Greater Berks Development Fund (GBDF), we can assist Berks businesses with their financing needs. As the only Certified Economic Development Organization (CEDO) in Berks County, GBDF can access funding from the Pennsylvania Department of Community Development. In addition to being a CEDO, GBDF is a state and federally designated Community Development Financial Institution (CDFI) through the U.S. Department of Treasury. The purpose of a CDFI is to promote economic revitalization and development in underserved communities.

GBDF’s ability to access various sources of funding has paved the way for unique financing opportunities for Berks businesses for over 70 years. In addition to the funding directly administered by GBDF, partnering with other organizations and financial institutions can occur to offer an attractive package for project needs. GBDF has utilized federal, state, and local grant and loan programs to structure creative financing packages.

In 2021, GRCA focused a significant portion of its economic development efforts on working with existing Berks businesses. These included: • As the CEDO, GBDF was the designated entity approved by the Berks County Commissioners to administer $4,680,000 in grants disbursed to 177 Berks County businesses through the COVID-19 Hospitality Industry Recovery Program (CHIRP) • Working with over 130 companies on relocation, expansion, financing and data needs* • Working with over 150 companies through the Advanced

Manufacturing Next Gen Industry Partnership (AMNGIP)

In 2021, GBDF packaged and submitted six Pennsylvania Industrial Development Authority (PIDA) Loans through the Pennsylvania Department of Community and Economic Development on behalf of existing Berks businesses. The loans totaled $1.9 million and over $7.5 million in total project costs.

One of those projects included Apollo Zeus Holdings, LLC, a real estate holding company for GMS Environmental, LLC. GMS Environmental was founded in 2012 in Palm, Penn., by Rita and Michael Sisselberger, in response to an industry-wide need for repairing and maintaining compactor equipment and waste container assets. From its opening until the present, GMS Environmental has provided mobile welding, fabrication and repair services at various customer locations. This mobility, at times, has subjected its team to weather and mobile process inefficiencies.

As GMS Environmental has grown, centralizing operations became a critical need. It was determined that the construction of a 5,000-square-foot building to operate its welding, fabrication and repair shop was needed to streamline the company’s services. A PIDA loan in the amount of $375,000 was approved in partnership with funding First Keystone Community Bank to assist with the more than $1.2 million construction project. This expansion project provides GMS Environmental with the ability to not only consolidate operations, but to also improve quality and service to the customer.

In 2021 as a CDFI, GBDF was eligible to apply for a Rapid

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Response Grant (RRG) from the U.S. Department of Treasury. The purpose of the grant was to deploy capital to help overcome the economic obstacles facing projects being undertaken in challenging circumstances. The RRG funds are an example of a unique and non-traditional funding opportunity that is administered by GBDF.

In June 2021, GBDF was notified that it has been awarded $1 million to be utilized for projects within certain geographic areas within Berks County, primarily in the City of Reading. The funds must be deployed as “financial products in the form of loans, loan guarantees, loan-loss reserves, etc.”

To date, two projects have received funding from GBDF from this award. First, GBDF is participating in the financing of the Super Natural Produce redevelopment project at 4th and Elm Streets in Reading, the site of the former City of Reading public works building. The new facility will include a full-service grocery store, a manufacturing operation and warehouse space.

The second project to receive RRG funds is the former Elks Club property at 46 South Fifth St. in Reading. Purchased by the Shuman Development Group (SDG) in May 2021, this building will require extensive investment and renovations. RRG funds were provided as a short-term loan to SDG to undertake interim repairs in anticipation of the winter months.

GRCA and GBDF are pleased to assist Berks businesses on their continued growth and expansion through traditional and unique financing opportunities. For more information or questions, please visit greaterreading.org/financing or contact Landon Bernheiser at LBernheiser@greaterreading.org or 610.898.7792.

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