PA Governor Rendell Says Specialty Tires Will Create 40 Jobs in Indiana County Using Citizens Job Bank Program

INDIANA, Pa., Sept. 30 -- Pennsylvania Governor Edward G. Rendell and Community and Economic Development Secretary Dennis Yablonsky today announced that Specialty Tires of America Inc. will create 40 jobs in Indiana over the next three years when it expands operations with a $1 million loan from the Citizens Job Bank program.

The Citizens Job Bank is an integral part of the Governor's economic- stimulus program. Its loans complement the new array of incentives available for job creation and retention, particularly Core Industries, which assists in the purchase of machinery and equipment for manufacturing and industrial companies.

"Creating jobs and opportunity for Pennsylvanians is our No. 1 priority, and the Citizens Job Bank is a spectacular partnership that does exactly that," said Governor Rendell. "This is a level of financial commitment that is unprecedented in Pennsylvania, and it is a terrific new tool to bring new jobs to Pennsylvania. The idea is simple -- if you create jobs here, Citizens and the Commonwealth will help you find the funds to expand your business."

Citizens Job Bank will provide Specialty Tires with a $1 million loan at 2.5 percent interest for five years. The company will use the funds to purchase new and used equipment that will allow for the manufacture of 100,000 radial tires annually.

Specialty Tires is a fully integrated manufacturer and distributor of radial and bias-ply rubber pneumatic tires for use on vehicles including go- carts, loaders, graders and military vehicles. Created in 1915, the company is a wholly owned subsidiary of Polymer Enterprises Inc.

To help Governor Rendell revive the state's economy, Citizens Bank of Pennsylvania recently launched the job bank, a public-private partnership with the Commonwealth in which Citizens will offer $100 million in loan funds at low rates to companies that commit to creating or expanding jobs in Pennsylvania. The Citizens Job Bank requires borrowers to create a minimum of one full-time job for every $25,000 borrowed at the unmatched interest rate of 2.5 percent. The bank's goal is to create more than 4,000 jobs in Pennsylvania within three years. Citizens is waiving all fees traditionally tied to loan applications as an additional incentive.

"This administration is dedicated to providing the capital our communities and businesses need to grow and become attractive places for Pennsylvanians to live, work and play," Secretary Yablonsky said. "This in turn will draw the private sector into our programs and our projects and continue to inject new life into our economy. We clearly see that here today."

The following stimulus programs were passed by the full Legislature: Business in Our Sites; Building PA; New PA Venture Guarantee Program; New PA Venture Capital Investment Program; First Industries Fund; 2nd Stage Loan Program; Tax Increment Financing Guarantee Program; and the Infrastructure & Facilities Improvement Program.

These programs join other pieces of the overall stimulus program passed in December and February, including the Elm Street program, Keystone Innovation Zones, the expanded Research and Development Tax Credit, the Base Retention and Conversion program and Core Industries.

The Governor's economic-stimulus plan leverages $2.3 billion in grants, loans and guarantees over the next three years to generate an anticipated $5 billion in private-sector investment to help start new businesses in Pennsylvania and help existing companies expand here.

The majority of the package programs, including Citizens Job Bank, will be administered through the Department of Community and Economic Development. The new legislation also includes the creation of a Commonwealth Financing Authority that will be responsible for financing and oversight of the programs.

For more information on Citizens Job Bank and other DCED programs, visit http://www.inventpa.com/. For information on stimulus programs, visit http://www.newpa.com/, or call 1-866-GO-NEWPA (1-866-466-3972).