Department of Community And Economic Development

COMMONWEALTH OF PENNSYLVANIA
DEPARTMENT OF COMMUNITY AND ECONOMIC DEVELOPMENT
HARRISBURG, PA 17120


OFFICE OF SECRETARY


May 20, 2002


Mr. Anthony J. Santilli Chief Executive Officer American Business Financial Services, Inc. 111 Presidential Boulevard Bala Cynwyd, Pennsylvania 19004


"2" REVISION"


Dear Mr. Santilli:


The purpose of this letter is to provide you with an outline of the assistance the Commonwealth of Pennsylvania is prepared to offer American Business Financial Services, Inc., should you choose to proceed with your expansion project.


My understanding is that your firm wishes to relocate and expand your National Headquarters in Center City, Philadelphia. Moreover, I understand that the proposed project would result in the creation of at least 150 new jobs within 3 years, and will serve to retain your 750 existing employees. Additionally, I understand that American Business Financial Services, Inc., will wake a $6.8 million investment in this expansion project. Based upon this information, I am pleased to propose the following forms of assistance by the Commonwealth through its economic development programs.


Opportunity Grant Program


The Opportunity Grant program has the flexibility necessary to allow Pennsylvania to customize its assistance to the specific needs of your project. Because of the significant economic impact of your project, I am proposing a $1 million Opportunity Grant be made available to American Business Financial Services. Inc., for costs associated with your expansion project.


Job Creation Tax Credits (JCTC)


The Commonwealth can provide tax credits to businesses that create new, full-time jobs, which pay at least 150% of the federal minimum wage. I am proposing that your firm, by creating 150 new jobs, would receive a tax credit of $450,000 over three years. These credits can be applied to your company's Pennsylvania Corporate Net Income Tax and/or its Capital Stock and Franchise Tax ...