“For any PIDA loan application that is received on or before December 31, 2017, a 2% interest rate fixed for the full term of the loan will be awarded to the PIDA borrower.”
Job Creation or Job Retention Program
Objective and General Information
The purpose of PIDA is to stimulate the construction of industrial building and/or development projects to increase employment in Pennsylvania with the focus on job creation or job retention.
Type of Financing
PIDA provides long term, low interest second mortgage financing for new construction, acquisition or expansion. PIDA loans are made to local non-profit industrial development corporations which, in turn, lend funds for the project. The local agency is responsible for servicing the loans for PIDA and for insuring that all state conditions are met. PIDA participation and interest rates are governed by the local unemployment rate. PIDA funds can be used for industrial development including land and building and industrial parks. Neither working capital nor machinery and equipment may be funded by PIDA. PIDA will not finance acquisition of land without building; "bricks and mortar" are necessary. One full time job (new) created or retained is required at the site within three years for each $35,000 of PIDA funding. If this target is not reached, the interest rate may increase.
PIDA loans are available to manufacturers, wholesale/distributors, or for office projects in which the PIDA-funded office will be the national or regional headquarters for the occupying company. PIDA projects are typically owner-occupied, although developers may apply for investment properties under certain circumstances. Mercantile, commercial and retail projects are ineligible.
Interest Rate and Term of Loan
2.00% for 15 years fixed
Charges by Bucks County Economic Development Corporation include a non-refundable $2,000 application fee as well as a 1% of the project loan amount due at the time of signing the PIDA commitment letter. One percent of the PIDA loan is charged (minimum $500) by PIDA when their commitment letter is accepted. Other costs include legal and bank fees (if a bank is involved in the project).