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<p>SUGAR NOTCH &#8212; The local company trying to revolutionize the paper bag market in the United States nabbed a $1.4 million loan from the state to pay for equipment. Gov. Tom Wolf&#8217;s office announced the 10-year loan at 3.75 percent interest Wednesday.</p><p>Highlighted in a special Times Leader section last April, American Paper Bag boasts an approach to bag manufacturing adopted in parts of Europe but still new to this country. The system makes a simpler, more versatile paper bag with fewer folds that takes up less space when empty, allowing the company to ship about three times more bags to a customer in the same space as traditional bags. Adapting the bags with art, handles, or internal dividers is also quicker than when using traditional methods.</p><p>The state loan comes through the Pennsylvania Industrial Development Authority, an independent agency run through the Department of Community and Economic Development. PIDA loans are intended to help with building acquisition, construction and renovation work, machinery and equipment.</p><p>The loan to American Paper Bag is expected to help create 38 full-time jobs in three years.</p><style>
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<div class="neCaption">American Bag plant manager Cipriano Hinojosa and CEO Ian Robson pose in the lobby of their then-new company headquarters for American Paper Bag in April 2018. </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2019/02/web1_TTL04xx18AmericanPaperBag1CMYK-2.jpg</photo0><caption0>American Bag plant manager Cipriano Hinojosa and CEO Ian Robson pose in the lobby of their then-new company headquarters for American Paper Bag in April 2018. </caption0><photoCredit0>Times Leader file photo </photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Mark Guydish</p><p>mguydish@www.timesleader.com</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Reach Mark Guydish at 570-991-6112 or on Twitter @TLMarkGuydish</p></shirttailMeta></div>

Sugar Notch-based American Paper Bag nabs $1.4M state loan