MCEDC Business Financing Programs

PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY (PIDA)

Description: Low-interest financing through Industrial Development Corporations for land and building acquisitions, construction and renovation resulting in the creation or retention of jobs.

Eligibility

Job Creation Loans:

• Manufacturing
• Industrial
• Research and development
• Agricultural Processors
• Firms establishing a national or regional headquarters
• Computer/clerical operation centers

Job Retention Loans:

Manufacturing firms that meet certain wage thresholds in that county

Eligible Uses:

• Land and building acquisition
• Building construction and renovation
• Industrial park development
• Multi-tenant spec building construction, acquisition and renovation

Where to Apply: MCEDC office (610) 272-5000

Amounts:

Loans up to $2 million (within Enterprise Zones, Act 47 Industrial Communities, Brownfields Sites, and Keystone Opportunity Zones, $2.25 million).

No more than 30% to 70% of total eligible project costs, depending upon firm size and unemployment rate.

“PIDA cost per job” is increased to one new or retained job for each $35,000 loaned.

Terms/Conditions:

Effective 7/1/2009, the Board also decided to establish interest rates quarterly using the most recent weekly average of the 10-year Treasury rate as a benchmark.  Interest rates will be reset quarterly in accordance with the criteria set forth below, and will be published on the Department of Community and Economic Development website, newPA.com.

The interest rate will be set at a rate equal to the 10-year treasury rate, rounded to the closest quarter point (designated in the attached schedule as “10 Year TR”), for projects located in critical economic areas with an unemployment rate that equals or exceeds the statewide average unemployment rate, for projects in any critical economic area that are designated by PIDA as “advanced tech projects”, and for projects located in the following targeted areas:

Brownfield Sites
Enterprise Zones
Federal Empowerment Zones
Federal Enterprise Communities
Financially Distressed Municipalities under Act 47
Keystone Innovation Zones                                                           
Keystone Opportunity Zones
Keystone Opportunity Expansion Zones                         
Keystone Opportunity Improvement Zones                     

The interest rate will be set at a rate equal to the 10-year treasury rate plus one percentage point, rounded to the closest quarter point (designated in the attached schedule as “10 Year TR+1”), for projects located in critical economic areas with an unemployment rate that is less than the statewide average unemployment rate and which would not otherwise qualify for the lower rate.