215-348-9031  |  115 WEST COURT STREET  |  2ND FLOOR  |  DOYLESTOWN, PA 1890


FINANCIAL TOOLBOX | DCED INTEREST RATE

DCED Interest Rate for the first Quarter of 2018 

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:

  1. Fixed interest rate for the full term of the loan (up to a 15-year 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 3.50% for the life of the loan.
  2. 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 2.50%.

For 10-year term loans with a 20-year amortization period:

  1. Fixed interest rate for the full term of the loan (10-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 3.50% for the life of the loan. 
  2. 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 2.50%.

For Equipment loans: 3.50% fixed rate for the full term of the loan.

For Working capital and accounts receivable lines of credit: 3.50% fixed rate for 12 month period.

For Pollution prevention and energy efficiency loans: 2.00% fixed rate for the full term of the loan.