In November of 1981, the SEDA-COG Board of Directors became aware of the SBA 503 Development Company Program and helped form a free-standing 501c3 Tax Exempt Non Profit Corporation called the SEDA-COG Local Development Corporation (LDC) which began in 1982 to carryout the SBA 503 program in 11 Counties in Central PA. Given the rural nature of the region and a lack of a large pool of volunteers with substantial economic development financing experience, the LDC chose to utilize the existing Local Loan Review Committee previously established by SEDA-COG to conduct a technical review of loan projects and develop recommendations for project approval or disapproval to the LDC Board of Directors. Diring the startup phase, the LDC had limited financial resources with administrative and financial staff support provided as an in-kind contribution by SEDA-COG to further the economic development of the 11-County Central Pennsylvania region.
This arrangement continued until approximately 1991 when the LDC was asked by the Harrisburg office of the Small Business Administration (SBA) to serve an additional seven Counties in South Central PA. The LDC voted to expand the board and picked up additional representatives from these other Counties. In 1993, the LDC again expanded to serve 10 additional counties in North Central Pennsylvania and also expanded the board to incorporate representatives from these additional Counties bringing the total Counties served to 28.
At this time, the arrangement for securing staff services became more formal as the LDC now served a larger area than just the 11-County SEDA-COG region. A contract was developed and approved by both the SEDA-COG Board of Directors and the Board of Directors of the LDC, which established an hourly charge for specific services performed by the Finance staff to operate the LDC. This contract is approval annually by both the SEDA-COG Board of Directors and the LDC Board of Directors.
Today, the SEDA-COG Local Development Corporation is a State-wide CDC serving all 67 Counties in Pennsylvania.
As of December 2015, the SEDA-COG Local Development Corporation has closed over 270 SBA 504 loans for a total of over $150 million to small businesses in Pennsylvania through the SBA 504 loan program.