A local re-sealable packaging company is among five businesses in the state selected this week to receive part of $4 million in loans this year.Sealstrip Corp., a Boyertown-based business with an equipment facility in Gilbertsville, will receive a loan of $680,000 to purchase and renovate their existing Gilbertsville facility. The Montgomery County Industrial Development Corp.-sponsored project, which will cost a total of $1.7 million, will create 16 jobs and help to retain 39 existing jobs.
Gov. Edward G. Rendell announced the low-interest loans on Wednesday.
"Even in this tough economy, companies are looking to invest, grow and create new jobs, and we must continue to encourage them to do so in Pennsylvania," Rendell said. "We cannot sit idly by until the economy improves; we must continue to invest in our businesses and workers by providing the resources they need to reverse this economic downturn."
Celebrating 50 years in business this year, family-owned Sealstrip Corp. makes flexible packaging - such as resealable plastic bags - for products including those manufactured by Pillsbury, Keebler, Kraft, Aunt Jemima and Gillette. Sealstrip's main office and material manufacturing facility is located at 200 N. Washington St., Boyertown. Their equipment group, located at 103 Industrial Drive in Gilbertsville, is the facility to which the loan will be applied.
Calls to company leadership on Thursday seeking comment were not returned.
Other companies chosen to receive the low-interest loans are Airline Hydraulics Corp, a manufacturer of mobile hydraulic and power equipment in Bensalem, Bucks County, which will receive a loan of $937,500 to purchase their current 67,000-square-foot industrial facility; Centre County Industrial Development Corp., which will receive a $945,000 loan to acquire and renovate a building in Penn Eagle Industrial Park in Bellefonte that is currently being occupied by Avail Medical Products; AccuSpec Electronics LLC, an Erie County electronics-manufacturing company, will receive a $1.1 million loan to acquire and renovate an existing building in Summit Township; and PIDC Financing Corp. in Philadelphia, which will receive a $680,000 loan to acquire and renovate an existing site that contains eight buildings totaling 45,000 square feet.
The loans, approved by the Pennsylvania Industrial Development Authority, will leverage more than $12 million in private sector funding, according to a release from the state Department of Community and Economic Development.
Rendell recently directed PIDA to cut interest rates to 3 percent to encourage more Pennsylvania companies to pursue job-creating projects.
PIDA provides capital for infrastructure acquisition, creation and renovation projects primarily for manufacturers, industrial developers, research and development firms, agricultural processors and employers looking to establish national or regional headquarters in Pennsylvania.