At its June 1, 2010 meeting, the Board of The Pennsylvania Industrial Development Authority adopted new project participation rates and interest rates based upon the most recent unemployment statistics provided by the Department of Labor & Industry.
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, on July 1 2010, October 1 2010, January 1 2011, and April 1 2011, in accordance with the criteria set forth below, and will be published on the Department of Community and Economic Development’s 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:
Enterprise Zones - Keystone Opportunity Zones
Keystone Opportunity Expansion Zones - Brownfield Sites
Keystone Opportunity Improvement Zones - Federal Enterprise Communities
Federal Empowerment Zones - Keystone Innovation Zones
Financially Distressed Municipalities under Act 47
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.
For the calendar quarter beginning July 1, 2010, the 10 Year TR rate is 3.00% and the 10 Year TR+1 rate is 4.00%.