Pennsylvania Industrial Development Authority (PIDA)

Pennsylvania Department of Community and Economic Development

Program Type:

Loan

Eligible Geography:

Pennsylvania

Summary:

The PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of certified economic development organizations (CEDOs) that partner with PIDA to administer the program.

Loan applications are packaged by a CEDO that services the county your business is or will be located in. The CEDO will work with you to determine whether or not the PIDA loan program can assist with financing the needs of your business and will discuss with you in detail how the application process works. PIDA charges a non-refundable loan commitment fee of 1% of the approved loan amount for loans greater than $400,000.

Eligible Recipients:

For-Profit Business

Eligible Recipients Detail:

Eligible businesses include:
-Agricultural Processor
-Agricultural Producer
-Industrial Enterprise
-Manufacturing Enterprise
-Research and Development Enterprise
-Hospitality Enterprise
-Defense Conversion Enterprise
-Recycling Enterprise
-Computer-Related Services Enterprise
-Construction Enterprise
-Child Day-Care Enterprise
-Mining Enterprise
-Keystone Innovation Zone Company
- Service Enterprise
-CEDO Developer
See the program site for more details on specific business eligibility guidelines.

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 costs include:
-Land Costs, including acquisition, site preparation and testing, utilities, site mapping, and other related costs.
-Building Costs, including building acquisition, construction, renovation and engineering, architectural, legal and other related costs.
-Machinery and equipment (M&E) costs may include, but are not limited to, acquisition, delivery, and
installation costs
-Working capital lines of credit costs including day-to-day operating expenses of a business
-Accounts receivable lines of credit costs

Eligible projects for which financing is available include:
-Eligible land and building costs
-Eligible machinery and equipment costs
-Businesses with less than 100 employees or less than 250 employees in exporting activities are eligible for working capital and accounts receivables lines of credit
-Businesses with less than 100 employees that adopt pollution prevention or energy efficient equipment that reduce consumption and waste
-Multi-Tenant facility projects involving the acquisition, renovation, expansion or construction of a building that will house two or more eligible businesses, with one business not occupying more than 80% of the building
-CEDOs for industrial park projects involving the acquisition and development of land for eventual sale
to eligible businesses

Other Eligibility Criteria:

Funding Match/Terms:

The PIDA program finances a portion of total eligible project costs. The maximum participation amount is determined by a variety of factors such as the proposed use of the PIDA funds, the business enterprise type applying for financing, the amount of matching financing from sources outside of PIDA, and the number of full-time jobs to be retained or created.

Loan approval is contingent upon meeting the program underwriting and collateral requirements. Up to 15 years for land and building acquisitions and construction / renovation projects; Up to 10 years for machinery and equipment purchases; Working capital and accounts receivable lines of credit have a term of 1 year and can be renewed. Interest rates for the program are based on current market conditions.