Business Financing
PA Industrial Development Authority (PIDA)
PIDA Lending Summary
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Low interest loan financing for land and building acquisition, construction and renovation projects that result in the creation or retention of jobs
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Available to any size business
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Administered through Lebanon Valley Economic Development Corporation
Eligibility
Businesses involved in the following enterprises:
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Manufacturing
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Industrial
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Warehouse and distribution centers
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Agricultural processing
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Research and development
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Firms establishing a national or regional headquarters
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Computer/clerical operation centers
Uses & Purposes of Funding
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Land and building acquisition
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Building construction and renovation
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Industrial park development
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Multi-tenant spec building construction, acquisition and renovation
Amounts
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Loans up to $2 million (NOTE: within Enterprise Zones, Act 47 Industrial Communities, Brownfield sites, Keystone Opportunity Zones
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Multi-Tenant Projects - up to $2.25 million in financing is possible
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40% to 60% of total eligible project costs, based on firm size and county unemployment rate
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Up to 75% of total eligible project costs for Keystone Innovation Zone (KIZ) companies
Terms
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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
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rate with a 2% maximum increase or decrease compared to the original interest rate. Floor interest rate of 3.50% for real estate projects only
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Full Term Fixed Interest Rate Option: 5.00% fixed for the life of the loan.
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Up to 15-year term on land and buildings
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No less than a second mortgage on financed assets
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Disbursement to applicant based upon reimbursable expenses
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$75,000 loan per job created or retained (no loan per job requirement on industrial park or multi-tenant projects).
Fees
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Application fee, due with signed term sheet)
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Legal fees
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Title insurance (real estate only)
Guidelines
Pennsylvania Industrial Development Authority (PIDA) Guidelines