Completion of loan agreement to save more than 5000 jobs in Pennsylvania
Washington, D.C. - U.S. Senators Arlen Specter and Bob Casey today announced that funding totaling $43,720,000 was made available to Boscov’s LLC through a Section 108 loan from the Department of Housing and Urban Development (HUD). An additional $3 million in loans is anticipated for Boscov’s pending completion of an application from Atlantic County, New Jersey, which voted to approve the measure last week.
The 20-year loan, coupled with $200 million in bank financing and personal equity contributions of over $60 million by the Boscov family, provides significant funding - over $300 million - to continue the successful operation of Boscov’s department stores.
“I am pleased that the federal loan has been made available to help Albert Boscov and his family obtain adequate funding to re-acquire the department store chain started by his father over 98 years ago,” Senator Specter said. “This loan will aid our economy and help Boscov’s continue to serve Pennsylvania as a significant employer, good corporate citizen, an excellent retailer.”
“The finalization of the loan agreement will protect Pennsylvania jobs and help maintain a Pennsylvania institution,” said Senator Casey. “After I heard about the need for help, my office has spent considerable time talking with HUD, Boscov’s and financial institutions to do everything I could to help. Just as Boscov’s and Pennsylvania have a long history, there is also a shared history with the Casey family. My father helped to bring the first Boscov’s to Scranton and I was glad to do everything possible to preserve Pennsylvania jobs.”
Section 108 is the loan guarantee provision of the Community Development Block Grant (CDBG) program which provides communities with a source of financing for economic development, housing rehabilitation, public facilities, and large-scale physical development projects. Boscov’s, with 39 full service department stores located in Pennsylvania and surrounding states, was established in Reading, Pennsylvania in 1911 and currently employs more than 5000 Pennsylvanians.
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