PIDA Changes Policy on Lending Threshold
Over the past year, and with broad input from its membership, PEDA has worked with staff from the Pennsylvania Department of Community and Economic Development (DCED) and the Pennsylvania Industrial Development Authority (PIDA) to identify key adjustments to policy that could further enhance the importance of the PIDA program. This collaborative approach led to important news earlier this month at the PIDA Board meeting, January 5th, updated a policy related to the program's lending threshold.
PIDA’s prior lending threshold policy for projects requiring job retention / creation was $35,000 loaned for every full-time job retained and $50,000 loaned for every full-time job created. This threshold was in place since the PIDA consolidation occurred in 2014. Over the past year, several DCED-certified economic development organizations (CEDOs) have suggested that PIDA revisit this policy due to the rising cost of real estate, raw materials for renovation and construction projects, and equipment costs, as well as the significant challenges companies are faced with related to retaining their existing workforce. Due to the above reasons, the PIDA Board discussed the policy and approved to increase the threshold for projects requiring job retention / creation to $75,000 loaned for every full-time job retained and $75,000 loaned for every full-time job created. This updated policy places an equal weight on the lending threshold for jobs retained and jobs created.
The updated policy went into effect immediately for new PIDA loan applications received on or after January 5, 2022. The PIDA program guidelines will also be updated to reflect this policy change. Any questions regarding this policy update or how the PIDA program may be able to assist in a project may be directed to the Jim Pawlikowski, BCEDC 484.352.4175.