FINANCIAL TOOLBOX

PIDA

Real Estate & Land

15 year amortization = 4%

7 years = 2.25% readjusted – see the second enhancement

Enhancements

The first enhancement involves increasing the lending limit for machinery and equipment loans funded from the PIDA-MELF account from $400,000 to $1,500,000. The lending increase applies to projects where PIDA is financing machinery and equipment acquisitions for eligible manufacturing, industrial, biotechnology, and computer related service enterprises. Please note that a 50% match is required and loans funded via the PIDA-MELF fund are subject to the job retention/creation requirements of one full-time job retained for every $35,000 loaned and/or one full-time job created for every $50,000 loaned.

The second enhancement is related to a new term offering for PIDA loans used to finance eligible real estate costs such as acquisition, construction, or renovation projects.  In addition to the customary 15-year term loans with a regular 15-year amortization, PIDA is now offering a ten-year loan term with payments based on a 20-year amortization period and a balloon payment due at the end of the ten year term. If a borrower chooses the extended amortization option, the borrower will also have the ability to select the fixed interest rate option, currently 4%, for the full ten-year term or the reset option whereas the interest rate will be fixed for a five year period set at the ten-year treasury rate +50 basis points. After five years, the rate will reset to the ten-year treasury rate +50 basis points and the reset rate will be limited to a 200 basis point increase/decrease with a floor of 2.25%. The current reset rate is 3%.  Please note that if a borrower elects to choose the 10-year term/20-year amortization option, the borrower will be required to pay-off the loan in full at the end of the ten-year period or refinance the remaining balance with a lending institution outside of PIDA.

Equipment: 7 year amortization 4%

Working Capital: 12 months term, 4%


Business Builder Loan Fund (BBLF)

The Bucks County Economic Development Corporation Business Builder Loan Program was established in 1989 to provide funding to small and emerging Bucks County companies. The primary goal of this loan program is the creation and preservation of employment consistent with all programs available through the Bucks County Economic Development Corp. Loan proceeds may be used for the acquisition of land and building, expansion, machinery and equipment and certain other eligible activities. Since funds are limited, applicants are encouraged to contact the BCEDC office to determine if sufficient funds are available for your project. Borrow any amount between $100,000-$350,000 with an interest rate between 3%-4%. To find out if you qualify contact Bob Cormack, BCEDC Executive Director or Jim Pawlikowski, Loan Manager, 215.348.9031.