Business Financing

PA Industrial Development Authority (PIDA)

 

PIDA Lending Summary

  • Low interest loan financing for land and building acquisition, construction and renovation projects that result in the creation or retention of jobs

  • Available to any size business

  • Administered through Lebanon Valley Economic Development Corporation

 
Eligibility

Businesses involved in the following enterprises:

  • Manufacturing

  • Industrial

  • Warehouse and distribution centers

  • Agricultural processing

  • Research and development

  • Firms establishing a national or regional headquarters

  • Computer/clerical operation centers

 

Uses & Purposes of Funding
  • Land and building acquisition

  • Building construction and renovation

  • Industrial park development

  • Multi-tenant spec building construction, acquisition and renovation

 

Amounts
  • Loans up to $2 million (NOTE: within Enterprise Zones, Act 47 Industrial Communities, Brownfield sites, Keystone Opportunity Zones

  •  Multi-Tenant Projects - up to $2.25 million in financing is possible

  • 40% to 60% of total eligible project costs, based on firm size and county unemployment rate

  • Up to 75% of total eligible project costs for Keystone Innovation Zone (KIZ) companies

 

Terms
  • 7-Year Fixed Interest Rate Option: 10-year U.S. Treasury rate set at time of application. After 7 years the rate will reset to the 10-year Treasury

  • rate with a 2% maximum increase or decrease compared to the original interest rate. Floor interest rate of 1.75% for real estate projects only

  • Full Term Fixed Interest Rate Option: 2.75% fixed for the life of the loan.

  • Up to 15-year term on land and buildings

  • No less than a second mortgage on financed assets

  • Disbursement to applicant based upon reimbursable expenses

  • $35,000 loan per job created or retained (no loan per job requirement on industrial park or multi-tenant projects).

 
Fees
  • Application fee, due with signed term sheet)

  • Legal fees

  • Title insurance (real estate only)

 

Guidelines

 

          Pennsylvania Industrial Development Authority (PIDA) Guidelines