PA INDUSTRIAL DEVELOPMENT AUTHORITY
FINANCING HIGHLIGHTS
Usage/Eligibility: Land, general-purpose buildings, renovations, for manufacturing or industrial (including warehouse & distribution centers) office buildings used as national or regional headquarters, computer or clerical operations center, agri-business (not farms), and research and development facilities.
Maximum PIDA Loans: PIDA could finance up to 60% of the eligible cost or $2,000,000 whichever is less. If a project is located in Enterprise Zones, Keystone Opportunity Zones, Keystone Opportunity Expansion Zones, Brownfield Sites, Keystone Opportunity Improvement Zones, Federal Enterprise Communities, Federal Empowerment Zones, Financially Distressed Municipalities under Act 47, and for advanced tech projects, then PIDA could finance up to 50% of the eligible cost or $2,250,000 whichever is less.
Eligible borrowers that employ less than 50 persons could use PIDA to finance up to 70% or $2,000,000 whichever is less. If a small borrower is located in Enterprise Zones, Keystone Opportunity Zones, Keystone Opportunity Expansion Zones, Brownfield Sites, Keystone Opportunity Improvement Zones, Federal Enterprise Communities, Federal Empowerment Zones, Financially Distressed Municipalities under Act 47, and for advanced tech projects, then PIDA could finance up to 60% of the eligible cost or $2,250,000 whichever is less.
Job Creation/Retention Requirements: A project must create and/or retain one job for every $35,000 borrowed through PIDA. The company has three years to meet the jobs requirement.
Participation: Typical deals are 10% in equity, 30% from a private lender (i.e. bank) and 60% from PIDA.
Term: PIDA will match the bank's term up to 15 years.
Interest Rate: Currently the interest rate is 3.00% for Clarion County. This rate is fixed for the term of the loan when the loan is approved by the state. If job projections are not met within 3 years, the rate can be increased (at PIDA board's discretion) to 12.5% retroactive to loan disbursement date. NOTE: Industrial and agri-business operations must have a total of 25 jobs at the project site within 3 years of occupancy 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 3 years and a minimum total project cost of $1.5 million.
PIDA Fee: The state charges a 1% nonrefundable fee due within 30 days of receipt of PIDA loan commitment letter.
CCEDC Fee: CCEDC charges a 1% of the PIDA Loan amount (minimum fee of $2,000.00) with half due with application and the balance due at closing. CCEDC is requires an annual maintenance fee of .25% on principal balance of loan at anniversary. CCEDC legal cost for loan closing is the responsibility of the company.
Loan Process Time: Up to 60 days application process. Closing must occur within 90 days after PIDA's receipt of their countersigned commitment letter.
Last Updated: July 11, 2011
