Third Quarter 2023 PIDA Rates Below Commercial Mortgage Lenders
Below are the updated 2023 third quarter interest rate options for qualifying PIDA loan applications. These rates are in effect for loan applications received through September 30, 2023.
For Real estate loans financing eligible land and building costs, borrowers will have the following interest rate options:
For term loans with a regular amortization;
- Fixed interest rate for the full term of the loan (up to a 15-yr. period), set at the current ten-year treasury yield + 100 basis points. Based on the current ten-year treasury yield, the fixed rate option is 4.75% for the life of the loan.
- Fixed interest rate for a seveniyear period set at the ten-year treasury yield. After seven years, the rate will reset to the then-current 10-year treasury yield. Please note, the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current ten-year treasury yield, the rate for the initial seven-year period is 3.75%.
For 10-year term loans with a 20-year amortization period;
- Fixed interest rate for the full term of the loan (ten-yr. period). This option is calculated using the ten-year treasury yield +100 basis points. Based on the current ten-year treasury yield, the fixed rate option is 4.75% for the life of the loan.
- Fixed interest rate for a five-year period set at the ten-year treasury yield. After five years, the rate will reset to the then-current ten-year treasury yield. Please note, the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current ten-year treasury yield, the rate for the initial five-year period is 3.75%.
For Equipment loans – 4.75% fixed rate for the full term of the loan.
Contact Jim Pawlikowski, BCEDC Loan Manager to discuss your financing needs, jjp@bcedc.com or 484.352.4175