Loan Rates Remain Consistent
Listed below are the updated interest rate options for the PIDA loan program. The rates will be in effect for loan applications received through December 31, 2016.
For Real estate loans financing eligible land and building costs, borrowers will have the following two interest rate options:
1. Fixed interest rate for the full term of the loan (up to a 15-year. period). This option is calculated using the ten-year treasury yield +150 basis points. Based on the current ten-year treasury yield, the fixed rate option is 3.00% for the life of the loan.
2. Fixed interest rate for a seven year period set at the ten-year treasury rate +50 basis points. After seven years, the rate will reset to the ten-year treasury rate +50 basis points. Please note, the reset rate is limited to a 200 basis point increase/decrease and has a floor of 2.25%. The reset rate is then fixed for the duration of the loan.
For this option, the rate is fixed for seven years at 2.25% and will reset to the ten-year treasury rate +50 basis points after the seven year period. The reset interest rate is capped at 4.25% (200 point increase) with a 2.25% floor and will be fixed for the remaining term of the loan.
For Equipment loans: 3.00% fixed rate for the full term of the loan.
For Working capital and accounts receivable lines of credit: 3.00% fixed rate for 12 month period.
For Pollution prevention and energy efficiency loans: 2.00% fixed rate for the full term of the loan.