Pennsylvania Industrial Development Authority (PIDA) Loans for Job Creation and Retention

Creation or retention of employment through low-interest loans to local non-profit Industrial Development Corporations (IDCs) for eligible businesses

• manufacturing, industrial (including warehouse and distribution centers), agri-business (not farms), computer or clerical operations centers, office buildings used as national or regional headquarters, and research and development facilities

• service, commercial and retail operations are not eligible

Land and building costs only: acquisition, renovation, expansion or new construction

The amount PIDA lends is always based on the unemployment rate in the area where the building is located. The higher the unemployment, the more dollars PIDA can lend and the lower the interest rate. Currently, PIDA can lend from 30-70% of the land and building costs - up to $2,000,000 for any one project - with a fixed interest rate of 4.25% (Rates subject to change)

• For each $35,000 loaned, PIDA requires that at least one full-time job be retained or created at the project site within three years
• industrial and agri-business operations must have a total of 25 jobs at the project site within three years and a minimum total project cost of $200,000
• national/regional headquarters and computer/clerical operation centers must have a total of 125 jobs at the site within three years and a minimum total project cost of $1.5 million

Projects located within the state enterprise zones, State Act 47 municipalities, federal empowerment zones, federal enterprise communities, brownfield sites, Keystone Opportunity Zones, Keystone Opportunity Expansion Zones and Keystone Opportunity Improvement Zones are eligible for up to $2,250,000 and automatically receive the lowest interest rate. Firms engaged in advanced technology (as determined by PIDA) also receive an interest rate of 4.75%

The maximum term of the PIDA loan is 15 years and in no instance shall the term of the PIDA loan exceed the bank's first mortgage.

1% non-refundable fee (1% of the PIDA loan) with $500 minimum due upon acceptance of the commitment letter

Loans may be secured by a second mortgage on the property financed; however, PIDA reserves the right to increase its collateral position based on a case-by-case review of the creditworthiness of the project.

Client is required to be present at the PIDA Board of Directors meeting in Harrisburg at which their loan is considered.

Please contact Larry Morgan for full details and assistance.