For Traditional PIDA 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 5.25% for the life of the loan.
- Fixed interest rate for a seven-year period set at the ten-year treasury yield. After seven 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 seven-year period is 4.25%.
For 10-year term loans with a 20-year amortization period;
- Fixed interest rate for the full term of the loan (ten-year 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 5.25% 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 fine-year period is 4.25%.
For PIDA-MELF Equipment loans – 5.25% fixed rate for the full term of the loan.
For PIDA-SBF account loans - 5.00% fixed rate for the full term of the loan.
Rates are good trough until September 30, 2024 with a submitted application.
For more information about these programs or other BCEDC Loan programs, please contact Jim Pawlikowski, BCEDC Loan Manager, 484.352.4175 or jjp@bcedc.com
