PIDA & SBA 504 rates announced for the Third Quarter of 2019
PIDA announced that its two interest rates for the third quarter of 2019 (July 2019 to September 2019) will feature a fixed rate of 3.00% or the option to have a variable rate of 2.00% (half the term of the loan). The term for a PIDA loan is up to fifteen years for real estate, up to ten years for machinery and equipment, and one year for working capital (but can be renewed annually up to a maximum of six years). The maximum loan amounts are $2 million for real estate, $400,000 for machinery and equipment (or 50% of the total project cost, whichever is less), and $100,000 for working capital. Eligible applicants can borrow $35,000 for every full-time job retained and/or $50,000 for every full-time job created within three years of closing of the loan. Applications can be submitted through the assistance of BCEDC, Commonwealth of PA, certified economic organization, (EDO)
The SBA 504 June 2019 rates are starting at 3.983% fixed for twenty years and 4.09% fixed for twenty-five years for real estate loans. The June 2019 rate for machinery and equipment is starting at 4.365% fixed for up to ten years. The maximum loan amount for eligible businesses is $5 million or 40% of the total project cost, whichever is less. The business’s tangible net worth cannot exceed $15 million and the business’s average net income after federal income taxes (excluding carry-over losses) for the two full fiscal years prior to application cannot exceed $5 million. Eligible applicants can borrow $65,000 for every new full-time job created.