Pennsylvania Industrial Development Authority (PIDA)

Eligible Applicants
For-profit agricultural processors, agricultural producers, industrial, manufacturing, research and development, health care facilities, hospitality, defense conversion, recycling, computer-related service, construction, child daycare (including non-profit), mining, service, and Keystone Innovation Zone (KIZ) enterprises located within Centre, Clinton, Columbia, Juniata, Lycoming, Mifflin, Montour, Northumberland, Perry, Snyder, or Union Counties having 100 or fewer full-time employees.


Eligible Use
Funds may be used for the following:

  • Building Acquisition
  • Building Construction
  • Building Renovation
  • Production machinery and equipment (M&E)
  • Furniture, fixtures, and equipment (FF&E)
  • Working capital
  • Professional fees
  • Closing costs/loan fees related to the project
  • Interest payments during bridge financing

Loan Amount
Land and Building Costs – For agricultural processors, manufacturers, industrial enterprises, and
research and development enterprises – Up to $2,000,000 or 50%, whichever is less (up to $2,250,000 in some cases). For agricultural producers, hospitality, defense conversion, recycling, computer-related services, construction, or daycare enterprises – $400,000 or 50% of eligible project costs, whichever is less.

Machinery and Equipment Costs – Up to $400,000 or 50% of eligible project costs, whichever is less.

Service Enterprises – Up to $200,000 or 50% of eligible project costs, whichever is less.

Working Capital – Up to $100,000 (50% match required for service enterprises). Up to $350,000 for exporting activities.

Pollution Prevention and Energy Efficiency Costs – Up to $100,000 or 75% of eligible project costs, whichever is less.

INTEREST RATE
Interest rates are set quarterly on January 1, April 1, July 1, and October 1 of each year using the current 10-year U.S. Treasury rate as an index benchmark, as set forth below. Please call for current rates.


Real Estate Loans – Borrowers can have 2 options:

  • A fixed interest rate for the full term of the loan, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.
  • A fixed interest rate for the first seven (7) years of the loan term, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point. After the initial 7-year period, the rate will automatically reset to the then-current 10-year U.S. Treasury rate, rounded to the closest quarter point. The reset rate is limited to a 200 basis point increase/decrease.

Equipment Loans – A fixed interest rate for the full term of the loan, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.

Working Capital – A fixed interest rate set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.

Pollution Prevention Assistance and Energy Efficiency Loans – A fixed interest rate of 2.00% for the full term of the loan.

Term

  • Up to 15 years for real estate
  • Up to 10 years for equipment
  • Up to 3 years for working capital

Equity Requirement
Equity (cash injection) amount varies based on the type of business and use of funds. However, the typical equity amount is 10% of the eligible project costs. In some cases, equity in real estate can be used.

JOB Criteria
One full-time job to be created or retained for every $75,000 of PIDA funds in the project within three years of disbursement. Service enterprises are only required to retain the number of full-time jobs employed by the business at the time of the application to DCED. Agricultural producers, pollution prevention projects, and export-related business projects do not need to create or retain employees.

fees
The PA Department of Community and Economic Development (DCED) charges a 1% commitment fee on the loan amount on loans greater than $400,000. For SEDA-COG the following fees apply:

  • For loan amounts greater than $400,000 – a non-refundable 1% application fee on the loan amount (due after approval of the loan request by DCED).
  • For loan amounts up to $200,000 to service enterprises – A non-refundable 1% application fee on the loan amount (due after approval of the loan request by the SEDA-COG Local Loan Review Committee.)
  • For loan amounts up to and including $400,000 to all other eligible applicants – A non-refundable 1% commitment fee on the loan amount (due after approval of the loan request by the SEDA-COG Local Loan Review Committee), 1% closing fee on the loan amount (due at the time of closing), and a minimum $500 legal fee (due at the time of closing).