Pennsylvania Economic Development Financing Authority Taxable Bond Program

Pennsylvania Department of Community and Economic Development

Summary:

Taxable bonds, both in pooled transactions and stand-alone transactions, may be used to finance land, building, equipment, working capital and refinancings.

Loans must be no less than $400,000

Eligible Recipients:

For-Profit; Non-Profit Organization; Local Government

Eligible Recipients Detail:

All types of businesses and projects needing access to low-cost capital.

Eligible Purpose:

General Infrastructure (Attached to Job Creation); Last Mile Connectivity; Building Connectivity; Broadband Enabled Devices (General); Broadband Deployment Planning/Feasibility Studies

Eligible Purpose Detail:

Eligible uses include:

-Land and building acquisition
-Building renovation and new construction
-Machinery and equipment acquisition and installation
-Designated infrastructure
-Refinancing (of bonds that were also tax-exempt initially)
-Working capital

Funding Match/Terms:

Funding is available up to 100% of project costs.

The weekly variable interest rates for pooled transactions are tied to market for tax-exempt bonds. The bond term for pooled transactions is based upon a negotiated letter of credit- the borrower generally must secure a letter of credit from the bank. Terms for stand-alone bonds may be negotiated. Interest rates for stand-alone transactions may be fixed rather than variable in some cases. A $500 fee due at time of application is to be credited against the issuance fee when the project closes.