investment Archives - Central Penn Business Journal

SBA loans to Hispanic or Latino-owned businesses growing

New U.S. Small Business Administration (SBA) data shows the number, rate and share of SBA-backed loans going to Hispanic or Latin-owned businesses have grown significantly under the Biden Administration.

The SBA said it has backed more than 7,300 SBA loans to Latino-owned businesses so far in Fiscal Year 2023 through the 7(a) and 504 programs. Total loan dollars ($2.8 billion) and overall share of SBA-approved loans (12.2%) to Latino-owned businesses are both up more than 1.5 times since Biden took office.

SBA Administrator Isabella Casillas Guzman joined Congressional Hispanic Caucus (CHC) Chairwoman Nanette Barragán, D-California, and other CHC members in Orlando to announce the new data.

“America’s more than five million Latino-owned small businesses create jobs, deliver over $800 billion to our economy every year, and add to our nation’s global competitiveness—and they could do even more if we invested in them equitably,” Guzman said. “We are seeing a small business boom and the fastest creation rate of Latino-owned businesses in over a decade.”

Guzman added, “Since day one of the Biden-Harris Administration, the SBA has been committed to expanding access to capital and addressing historic gaps in small business lending to this highly entrepreneurial community and this 1.5x increase in loans to Latino-owned small businesses demonstrates the positive impact of President Biden’s economic agenda. We are on the right path, and we will continue to do more to deliver the needed funding to advance opportunities for all.”

Under the Biden-Harris Administration, the United States has experienced a historic small business boom being led by women and people of color, with 13.6 million new business applications filed since President Joe Biden took office, a rate 65% faster than the pre-pandemic average.

SBA said it has taken significant steps aligned with the president’s Investing in America agenda to increase access to its core capital programs, including among Latino entrepreneurs. These include:

Expanding the Community Advantage Program, which supports lending to small businesses in underserved communities through mission-driven, community lenders, and making mission-oriented lending a permanent part of the SBA loan program through the Community Advantage Small Business Lending Company license;
Deploying the $100 million Community Navigator Pilot Program funded under President Biden’s American Rescue Plan;

Launching the Biden-Harris Administration’s cross-country Latino Prosperity Tour;
More than tripling the number of Women’s Business Centers at Hispanic-Serving Institutions; and
Implementing new reforms to address persistent capital access gaps.

“Latino-owned businesses are seeing the fastest creation rate in more than a decade due to the deliberate efforts of the Biden-Harris Administration. The U.S. Small Business Administration’s new benchmark loan numbers show a strong uptick in lending to Latino small business owners,” Barragán said,

While there is a long way to go to fully ensure equal opportunity for all Latino small businesses, the SBA and Biden Administration initiatives have allowed more Latino small business owners across America to access much-needed capital, Barragán said.

“The Congressional Hispanic Caucus applauds this promising trend and remains committed to working alongside the Administration to deliver positive results for Latino small businesses,” she added.

Paper tube manufacturer invests $4M to streamline production

New Oxford, Adams County-based Yazoo Mills, Inc. has invested $4 million in infrastructure and software in a move the company says will help streamline production.

The manufacturer of paper tubes and cores said the investment in next-generation high-speed converting lines, infrastructure, and proprietary production scheduling software is part of its strategic growth initiatives to meet customer demands for faster speed to market products.

The improved technology, infrastructure, and software systems solidifies Yazoo’s commitment to finding the best solutions for their nationwide customer-base, the family-owned company said.

All production lines and software are expected to be operational by the first quarter of 2024.

Yazoo Mills said facility infrastructure upgrades were recently completed to provide improved workflow efficiencies and support planned future growth.

The new converting lines and proprietary scheduling software will streamline the production process, which Yazoo said will enable it to optimize efficiency and increase output.

E-commerce jeweler gets $375,000 venture capital investment

White Rose Ventures has committed $375,000 to a Lancaster-based e-commerce jewelry company started by two West Point graduates – the milestone 10th investment from its White Rose Impact Fund.

The business, WOVE, specializes in customized engagement rings.

A release from the York-based venture capital firm described WOVE, founded by Drew Wolgamuth and Brian Elliott, as “a revolutionary online custom jewelry service that empowers customers to express their individuality through personalized elegance.”

White Rose Ventures praised WOVE’s “robust go-to-market strategy” designed to make a lasting impact. “By strategically utilizing social media ads, collaborating with influencers, and implementing targeted email campaigns, they are successfully building brand awareness and capturing the attention of their desired audience.”

It also cited WOVE’s “seamless” online experience, including a user-friendly website powered by cutting-edge 3D modeling technology; its “exceptional” customer service; and its forging of strategic partnerships with established jewelry retailers.

With the $375,000 earmarked for WOVE, the total invested from the White Rose Impact Fund is $5.35 million.

The other nine businesses that received money from the fund are CyberconIQ, $1.333 million; Reflexion, $800,000; Naqi Logix, $200,000; Pledgelt, $400,000; EVERMIND, $250,000; Return Logic, $1 million; TEAMology, $250,000; The Pretzel Co., $250,000; and Gilson Snow, $500,000.

According to its website, White Rose Ventures is “a network-driven venture firm working with entrepreneurs, foundations, private investors and corporate partners to deliver solutions that enhance and promote entrepreneurial-led economic development in southcentral Pa.”

Paula Wolf is a freelance writer

Great Lebanon County PITCH competition opens

The Center for Entrepreneurial Excellence, a free business resource for Lebanon County, has opened the third annual Great Lebanon County PITCH, offering entrepreneurs the chance to win seed money to start their dream business or expand their existing business.

They will compete for a portion of $8,000 in grant money – $5,000 to the winner and $3,000 to the runner-up. This year’s PITCH program will culminate in a presentation Oct. 24.

The center’s chairperson, Lebanon Mayor Sherry Capello, said in a release that “the winners from previous PITCH competitions have done very well – expanding their business offerings, opening their doors, and more. We’re glad we were able to provide some assistance in helping them reach their goals.”

Interested participants will need to complete a business plan. Now through October, the center will provide workshops and SCORE mentoring for entrepreneurs to develop and create their comprehensive business plans.

An Interest to Participate in the PITCH must be submitted no later than Sept. 4. This does not require participation; it just shows a level of interest.

Deadline for the final application and business plan is 4 p.m. Oct. 6.

The Great Lebanon County PITCH will be presented at the Center for Entrepreneurial Excellence, 989 Quentin Road, Suite 1, Lebanon, from 3-5 p.m. Oct. 24.

The competition is open to the following:

A business in Lebanon County that is expanding or altering its business model.
Entrepreneur(s) with an idea to create a new business that is or will be in Lebanon County.

There is no cost to participate; all the information and the applications are online at thecenterlebanon.org.

Paula Wolf is a freelance writer

Santander US $13.7B Community Plan to help communities prosper

Boston-based Santander Holdings USA, Inc. (“Santander US”) unveiled its latest Community Plan, a three-year commitment that it said will help communities across the country grow.

Santander US said the plan includes $4.6 billion in community reinvestment and $9 billion in sustainable finance, which will provide for affordable housing, small business and supplier diversity, as well as $100 million in charitable giving and 100,000 employee volunteer hours.

Caroline Connolly, Santander US spokesperson, said, “Our Community Plan covers our Consumer Bank footprint, which includes the Lehigh Valley and Southcentral Pennsylvania.”

Communities in the Midstate and Lehigh Valley received $530,000 from the program last year.

The Santander US Community Plan was developed in partnership with the National Community Reinvestment Coalition (NCRC), which led forums with over 30 community-based organizations.

“Our latest community plan builds upon our long track record of investing in our communities, including small businesses, affordable housing and underserved communities,” said Santander US CEO Tim Wennes. “This new plan increases our commitments to affordable housing, while adding sustainable finance and supplier diversity commitments.”

Last year, Santander US provided more than $530,000 in grants to 19 organizations in central PA and Lehigh Valley which included:

Affordable housing work which supported homebuyer and housing counseling, critical home repairs, and the building and rehabilitation of homes for low- and moderate-income families.
Financial education, which supported financial literacy and self-sufficiency initiatives that helped low- and moderate-income individuals/families meet their needs for reliable transportation.
Small business development efforts which supported loan products and access to capital.

Santander US said it worked with local grant partners including Community First Fund (CDFI), Tenfold, and Spanish American Civic Association for Equity Inc (SACA).

Over the next three years, Santander US is committing:

$1.5 billion in small business lending

$3 billion in community development lending and investments, with more than $2.5 billion in affordable housing
$9 billion in sustainable finance investment, with a focus on renewable energy
100% increase in direct supplier diversity spending
$100 million in charitable giving to nonprofit organizations
100,000 employee volunteer hours in underserved communities

“NCRC and our 750-plus member organizations work with banks across the United States to advance a more just banking model,” said Jesse Van Tol, president and CEO, NCRC. “When bank leaders and community organizations can sit down together, listen to one another and craft plans that promote a more equitable economic reality on the ground, everybody wins.”

Lancaster firm receives $150,000 to grow business

A Lancaster County startup company is one of ten in Central and Northern Pennsylvania to receive an investment from Ben Franklin.

Boostpoint, 117 S. West End Ave., Suite 7, is a recruitment marketing business to business software that helps companies source and engage with qualified candidates through targeted social media advertising and automated SMS/text campaigns. The company received $150,000, Ben Franklin said.

Ben Franklin said the investment will allow the companies to further develop and commercialize new products, software applications, or stabilize operations in a long-standing manufacturing business.

The Ben Franklin program has been investing in tech startups for nearly 40 years, allocating capital to help catalyze economic growth, empower local entrepreneurs, and elevate rural Pennsylvania’s position as a hub for innovation.

Fulton invests $1M to aid women and minority-owned businesses

Innovate Capital Growth Fund Partner Della Clark and Fulton Financial Corporation Chairman and CEO Curtis J. Myers celebrate the bank’s investment to help fund growth for minority- and women-owned businesses – PHOTO/PROVIDED

Fulton Bank is investing $1 million to help minority and women-owned businesses grow.

Fulton, a subsidiary of Fulton Financial Corp., invested the funds in Innovate Capital Growth Fund, L.P., which provides capital and operational expertise to minority- and women-owned businesses.

The investment is part of Fulton Bank’s Commercial Affinity Banking initiative, which is designed to increase access to financial services for diverse businesses, the bank said.

“Fulton Bank’s investment will advance our mission of connecting institutions with minority businesses, unlocking the potential for future growth,” said Innovate Capital Growth Fund Partner Della Clark. “There are more than 3,200 minority-owned and 8,800 women-owned businesses in our target market in the Mid-Atlantic region and providing them with equity capital represents a significant opportunity to contribute to overall economic growth.”

Based in Philadelphia, Innovate Capital Growth Fund is a Small Business Investment Company (SBIC) focused on providing equity investments in women- and minority-owned lower middle market firms in the Mid-Atlantic region.

Innovate Capital Growth Fund said it typically works with businesses with annual revenues of approximately $2 million to $10 million from a range of industries, including manufacturing, consumer products, technology, and healthcare services.

“Fulton Bank is committed to ensuring that businesses in the communities we serve have access to the capital and banking services that will empower them to grow and thrive,” said Curtis Myers, chairman and CEO of Fulton Financial Corp. “We are excited about the opportunity to invest in Innovate Capital Growth Fund, which is focused on supporting diverse businesses.”

Senior Vice President and Director of Commercial Affinity Banking Joel Barnett said, “This investment in Innovate Capital Growth Fund is part of Fulton Bank’s Commercial Affinity Banking Program. As part of that program, we are creating a suite of commercial banking solutions which includes access to capital and deposits and payments. Fulton bankers are undergoing training on these new programs and resources to develop expertise in assisting diverse businesses.”

Gannett Fleming Investment deal to help meet infrastructure demands

Camp Hill-based Gannett Fleming said it received a strategic investment from a private equity firm to help it meet a growing demand for improved infrastructure.

Gannett Fleming, an engineering and infrastructure solutions provider for the transportation, water, federal, power and energy markets, said the investment from New York-based OceanSound Partners will help it meet the backlog of work from government contracts.

Gannett Fleming will continue to operate under the leadership of its existing management team, who will retain a significant ownership interest in the company. Financial terms of the transaction were not disclosed.

“Our rich 107-year history is built on solving complex infrastructure challenges with innovation, reliability, and excellence. The Gannett Fleming team is excited to continue this journey into our second century with OceanSound at our side,” said Bob Scaer, CEO of Gannett Fleming. “With record backlog and accelerating demand due to the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, we are entering the OceanSound partnership from a position of strength.”

Scaer said OceanSound has a proven track record of accelerating the growth of companies serving government agencies.

“This partnership will help us attract and retain the best talent, make significant investments in emerging technologies, expand and deepen our geographic footprint, and support our employees so they remain at the top of their field.” he said. “Together with OceanSound, we expect to substantially increase our market share in our key service offerings while maintaining the time-tested culture and mission that our employees and clients value.”

Founded in 1915, Gannett Fleming employs over 2,800 engineers, scientists, technologists, and construction professionals charged with developing and maintaining sustainable and future-proof infrastructure.

“The need for sustainable infrastructure optimizing total lifecycle cost of ownership is becoming more urgent as climate change accelerates and decades of underinvestment in critical infrastructure accumulates,” said Joe Benavides, managing partner OceanSound. “Gannett Fleming has differentiated technology-enabled solutions spanning transportation, electrification, and water management that make them well-positioned to capitalize on growth of the infrastructure services market.”

Benavides said, “We are confident that our approach to value creation can catalyze further growth at Gannett Fleming. Gannett Fleming is a storied franchise in the infrastructure consulting market, and we are thrilled to partner with its management and highly skilled employees to further enhance the company’s value proposition to its customers.”

The transaction was unanimously approved by Gannett Fleming’s board of directors and existing employee stockholder base. Houlihan Lokey, Inc. acted as financial advisor and Holland & Knight LLP served as legal advisor to Gannett Fleming. Skadden, Arps, Slate, Meagher & Flom LLP served as legal advisor to OceanSound.

WellSpan Health sets record $313M in community investments

WellSpan Health has set a new annual record for community investments of more than $313 million during the 2022 fiscal year.

As reported in its Community Benefit Report, the investment was an intentional effort designed to benefit communities through expansive community programs and outreach, charity care, unreimbursed Medicaid costs and supplemental medical, dental and pharmaceutical services, WellSpan Health said.

Roxanna Gapstur

This includes WellSpan’s mobile mammography coach, listening sessions with community partners to determine biggest needs, and funding grants that benefit healthy communities.

“Improving health through exceptional care for all is a deeply rooted WellSpan commitment and the driving factor behind everything we do to continually improve the health of our communities,” said Roxanna Gapstur, president and CEO, WellSpan Health. “Delivering accessible services, partnering with and investing in community organizations, and providing tools and resources to those who need it most reflects our promise to be a trusted partner to our friends and neighbors across the region.”

The health system’s community impact is measured annually against its three-year Community Health Improvement Plan, which is based on an assessment of community health needs.

Highlights of WellSpan’s community engagement work include:

$1.4 million in Community Partnership Grants to non-profit organizations that supported initiatives that advanced our Community Health Needs Assessment priorities.
Support to community organizations with more than $1.8. million in sponsorships to foster Community Engagement.
Screening of 360,000 patients for food, housing, and transportation insecurity, and connecting them with services, to cultivate healthy communities.
Offering health programs to 16,000 people to promote mental wellbeing and prevent and manage chronic disease, supporting lifelong health and wellness.

Self-storage real estate firm relocates to downtown York

The Investment Real Estate Group of Companies, a full-service, self-storage real estate firm based in York, announced the move to its new headquarters at 320 N. George St. in downtown York.

The 43,000 square-foot, open-concept space “will foster collaboration and cooperation among employees, clients, professional partners and community members,” a release said.

Approximately 35 employees will work from the headquarters, which provides plenty of room for expansion.

The office building is also home to two of IREGC’s vendors who offer support in mergers and acquisition activities and internet marketing strategies.

“I love the energy and hustle and bustle of a thriving city,” said John Gilliland, CEO of the Investment Real Estate Group of Companies. “The continued revitalization of downtown York is important to us, and we wanted to contribute to that effort. We were searching for an office space that matched the same energy as our employees and the company. We have found the ideal space for our new headquarters, and everyone is excited to be a part of the downtown scene.”

The headquarters, purchased from the Kinsley family, is within walking distance to York’s arts and cultural scene, restaurants and shops. It also has a large community space that will be used by John and Denise Gilliland to host events for employees, clients, professional partners and community members.

Founded in 1998, IREGC offers a wide range of services in the self-storage industry, including brokerage, feasibility studies, construction, development and property management.

In addition to the York headquarters, the company has properties in Maryland, New Jersey, Connecticut, New York, Massachusetts, Iowa and elsewhere in Pennsylvania.

To date, IREGC has listed and sold over $1 billion of self-storage in 500 transactions, managed more than 75 properties in eight states, and helped clients develop and build more than 2.5 million square-feet of self-storage.

Paula Wolf is a freelance writer

European firm invests in Sapio Sciences

A European specialist investor in global healthcare has invested in Sapio Sciences (Sapio), an integrated lab informatics platform with offices in York.

Global Healthcare Opportunities, or GHO Capital Partners LLP, announced Thursday that it has invested in Sapio, which is helping to transform and accelerate life science research and development for international biopharmaceutical companies and clinical diagnostic labs.

Kevin Cramer

Based in Pennsylvania, Sapio serves an international customer base throughout the United States with additional footholds in Europe and Japan, and ambitions to expand globally in the coming years, GHO said.

Founded in 2004 by Chief Scientist and CEO Kevin Cramer, Sapio has established a highly scalable technology solution addressing the Laboratory Information Management (LIMS), Electronic Laboratory Notebooks (ELN) and Scientific Data Management (SDMS) markets with its unified lowcode, no-code platform.

Sapio’s clinical LIMS offers complete end to end operational support for molecular diagnostic labs including a physician portal for test ordering, kit management, sample shipment and accessioning, order transcription to lab processing and patient reporting in a seamless solution, GHO said.

As regulators and customers continue to place greater emphasis on data quality, data access, and AL/ML, Sapio’s informatics platform easily captures and centralizes scientific and process data, which is currently siloed in different systems, while making it easily searchable and usable across all workstreams and speeding up drug development, GHO said.

With its customer base that includes Bristol Myers Squibb, GSK, J&J, Charles River and LabCorp, Sapio is set to continue driving growth in the lab informatics and drug development landscape.

GHO said its support and investment will allow Sapio to explore multiple avenues for growth and expansion for the company, product offering and global footprint.

“The trend towards adopting lab informatics solutions is accelerating. Sapio represents a perfect opportunity to support a high growth, profitable company with a uniquely scalable SaaS business model, operating in attractive markets that are underpenetrated and desperate for innovation,” the partners at GHO said. “Working in lockstep with Kevin, we look forward to building upon Sapio’s best-in-class profile and unlocking the multiple expansion opportunities to scale up and internationalize the business, delivering life-changing products to market faster.”

Sapio’s Cramer said, “As lab workflows become increasingly complex and the volume of data increases, the management and interrogation of that data becomes even more vital. Over the last eighteen years, Sapio has built a uniquely flexible, scalable, unified and easy-to-use informatics platform developed specifically to address the deficiencies of current processes. We are proud to have GHO partner with us to support our next transformational steps as a company.”

Pa. sees billions in federal dollars one year after Bipartisan law

Since being signed by President Joe Biden in 2021, the Bipartisan Infrastructure Law has provided Pennsylvania with billions of dollars in support for projects.

Thus far, investments have been made to improve the state’s infrastructure, support a cleaner environment, and create good jobs that pay well.

“This $7.9 billion infrastructure investment is really an investment in people,” said Gov. Tom Wolf, who on Tuesday joined White House Infrastructure Coordinator Mitch Landrieu to celebrate the anniversary of Biden’s historic investments in important infrastructure projects in Pennsylvania and across the country.

For Pennsylvania, the investment includes funding for the following critical projects:

Amtrak routes on the Eastern Seaboard
Addressing aging infrastructure of the Philadelphia International Airport
Replacing and repairing more than 7,540 miles of highway and 3, 353 bridges in poor condition

Providing eligible families $30/month off their internet bills through the Affordable Connectivity Program

The Bipartisan Infrastructure Law is the largest federal investment in infrastructure in decades, and Pennsylvania has received in total the following:

$58 million for clean school buses
$62 million to improve electric vehicle infrastructure
At least $100 million for broadband and internet expansion

$119 million for airports
$208 million for clean energy and energy efficiency projects
$240 million for clean drinking water
$349 million to cap orphaned wells and reclaim mind lands
$614.8 million to improve public transportation

$1.1 billion to improve infrastructure resilience and prepare for floods and extreme weather events
$5.2 billion for road and bridge projects
$110 billion for ports and waterways.

“It’s an investment in safe travels to work, family, and friends; an investment in a secure supply chain, the food we eat, the water we drink, and the air we breathe,” Wolf said. “I am grateful for President Biden’s leadership and this bold investment to build a better future for all Americans.”

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Tag: investment

E-commerce jeweler gets $375,000 venture capital investment

Great Lebanon County PITCH competition opens

Gannett Fleming Investment deal to help meet infrastructure demands

Self-storage real estate firm relocates to downtown York

Pa. sees billions in federal dollars one year after Bipartisan law