Listen to this articleThe Shapiro Administration announced Tuesday expanded access and increased funds for Pennsylvania’s creative small businesses.
The expansion of the Creative Business Loan Fund (CBLF) by the Pennsylvania Council of the Arts (PCA) includes a new loan partner, Rising Tide Community Loan Fund, and $2.6 million in flexible capital. Rising Tide will focus on servicing the loan fund in the Lehigh Valley and Northeastern Pennsylvania.
The 2022-23 state budget is funding the expansion.
“Creative small businesses are the heart of strong communities — creating vibrant corridors and unique products and services for residents and visitors to enjoy, as well as supporting community livability and competitiveness,” Karl Blischke, executive director of the PCA, said in a statement.
A community development financial institution (CDFI), Rising Tide Community Loan Fund is a subsidiary of the Community Action Committee of the Lehigh Valley.
“From Allentown’s ArtsWalk to Bethlehem’s Southside Arts District to the Arts Community of Easton, the arts are the colorful thread that ties our communities together,” said Chris Hoduk, Rising Tide’s Associate Executive Director for Business Development.
Rising Tide joins fellow CDFIs, Bridgeway Capital and Community First Fund, which have served as PCA’s project partners and loan administrators since the fund’s inception.
The CBLF was created in 2020 and prioritizes loans to creative businesses in low-income communities, those owned by Black, Indigenous, and people of color (BIPOC) or serving a diverse market, and those located in small towns and rural communities. Craft manufacturers; arts schools; architecture, design and fabrication firms; media companies; and visual and performing arts production agencies are among the eligible creative businesses.
More than 20 creative small businesses in Pennsylvania have received a loan through the CBLF. The amount of loans vary from several thousand dollars to $250,000, with an average of $110,000. Eligible uses for loans include equipment purchases, production, and real estate acquisition. CBLF loans have gone to businesses whose work involves book editing and production, printing, custom woodworking, home goods design, and music production and recording.
Data from the Bureau of Economic Analysis (BEA) at the U.S Department of Commerce show the creative sector’s economic impact and value. In 2021, Pennsylvania’s creative sector contributed $28.6 billion to the economy, sustained more than 165,000 jobs, and provided $14 billion in compensation.
