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 3.50% for real estate projects only

• Full Term Fixed Interest Rate Option: 5.00% 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

• $75,000 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