Pennsylvania Industrial Development Authority (PIDA) Multi-Occupancy Loans

Low-interest loans made directly to Industrial Development Corporations (IDCs) to finance facilities that will house two or more unrelated PIDA-eligible tenants with no one tenant occupying more than 80% of the facility.

• manufacturing, industrial, including warehouse and distribution, and any other PIDA-eligible activity such as research and development
• no more than 15% of the space may be used for ineligible activities such as retail or commercial

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

• either 30% or 40% of the project cost, depending upon PIDA's mortgage position, with a fixed interest rate of  4.75%. (Rates subject to change)
• maximum amount is $1,750,000
• if the bank is unwilling to share a first mortgage with PIDA, PIDA can still participate in the financing and secure its loan with a sole second mortgage, but its loan is then limited to 30% of the cost or 20% equity is then required

• PIDA takes back the mortgage from the IDC
• IDC retains title for life of the PIDA loan and enters into straight lease agreements with tenants with no prior approval of leases required from PIDA

• Projects located within 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 automatically receive the lowest interest rate.
• 15 years:  during the first 2 years, monthly interest is due; years 3-15, monthly principal and interest is due
• if the bank term is less, PIDA will match the bank term but the first two years of the PIDA term will still require only monthly interest

• $500 packaging fee
• 1% of PIDA loan amount due to PIDA at time commitment letter is executed
• 2% of PIDA loan amount due to Economic Progress Alliance at time of closing
• 1/4 of 1% of PIDA loan amount due to Economic Progress Alliance on anniversary date of loan closing

First, participating first and/or second mortgage on property financed

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.