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One S. Church Street, Suite 200, Hazleton, PA 18201
p: 570.455.1508   f: 570.454.7787

Pennsylvania Industrial Development Authority (PIDA)

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Uses
Funding
Eligibility
Terms
How to Apply
Eligible Cost
Ineligible Activities
Loan Amounts and Matching Investment Requirementst
Interest Rates and Terms

The Pennsylvania Industrial Development Authority Overview (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. CAN DO is a CEDO primarily responsible for The Greater Hazleton Area, but certified for all of Luzerne County.

Uses

  • Land and building acquisitions
  • Construction and renovation costs
  • Machinery and equipment purchases
  • Working capital and accounts receivable lines of credit
  • Multi-tenant facility projects
  • Industrial park projects

Funding

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.

Eligibility

A variety of different industry sectors are eligible for PIDA financing, including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child day-care, retail and service, export, and computer-related service enterprises.

Terms

  • 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. Please contact the PIDA Office or the CEDO in the county your business is located for the current interest rate.

How to Apply

Loan applications are packaged by a CEDO that services the county your business is or will be located in. As a CEDO in Luzerne County, CAN DO 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.

Eligible Cost

Land costs may include site preparation and testing, utilities, site mapping, and other related costs. Land costs must be directly associated with the development of an industrial park or the purchase, renovation, or new construction of a building or a production facility that will be used by an eligible business.

Building costs may include building acquisition, construction, renovation and engineering, architectural, legal, multi-tenant projects and other related costs.

Machinery and equipment (M&E) costs may include, acquisition, delivery, and installation costs. Eligible if associated with acquisition of machinery and equipment that the business newly purchases.

Working capital lines of credit costs may include day-to-day operating expenses of a business.

Accounts receivable lines of credit costs may include receivables sold on payment terms up to 180 days accounts as well as receivable financing to support export activities.

Ineligible Activities

Projects relating to any of the following activities are not eligible:

  • Refinancing any portion of the total project cost except for short-term “bridge” financing.
  • Projects that have commenced before receiving approval of the PIDA loan.
  • Providing funds, directly or indirectly, for payment whether as loan repayment, dividend distribution, return of capital, loans, or otherwise to owners, partners or shareholders of the business enterprise, except as ordinary compensation for services rendered.
  • Finance a project located outside the geographic boundaries of Pennsylvania.
  • Relocate a business to another part of Pennsylvania

Loan Amounts and Matching Investment Requirements

A PIDA loan can be matched by a variety of different financing sources including, but not limited to, traditional private financing, equity contributions, seller financing, as well as local, state, and federal grant and loan programs.

  • The combined maximum amounts identified in #1 - #4 below.
  • The amount calculated by multiplying the number of jobs to be retained by $35,000 and the number of jobs to be created by the eligible business within three years after the closing of the PIDA loan.

Note: agricultural producers and service enterprises as well as multi-tenant facility and industrial park projects are not bound to meet the job creation/retention requirement.

1. Land and Building Costs:

  • The maximum loan amount is $2,000,000 or 50% of the total eligible land and building costs.
  • Multi-tenant facility projects are eligible for loans up to $2,250,000 or 50% of the total eligible land and building costs.
  • Industrial park projects are eligible for loans up to $2,250,000 or 75% of the total eligible land costs.
  • The maximum loan amount to an agricultural producer, hospitality, defense conversion, recycling, computer related services, construction, or child day-care enterprise is $400,000 or 50% of the total eligible land and building costs.
  • The maximum loan amount for a service enterprise is $200,000 or 50% of the total eligible land and building cost.

2. Machinery and Equipment Costs:

  • The maximum loan amount for all eligible businesses is $1,500,000 or 50% of the total eligible M&E costs, except
  • The maximum loan amount for service enterprises is $200,000 or 50% of the total M&E costs.

3. Working Capital and Accounts Receivable Costs:

  • The maximum line of credit amount for any eligible business having 100 or fewer full-time employees worldwide at the time of submission is $100,000 (50% match is required for service).
  • The maximum line of credit amount for eligible businesses involved in exporting activities having fewer than 250 jobs is $350,000.

4. Pollution Prevention and Energy Efficiency Costs:

  • The maximum loan amount for pollution prevention and energy efficiency projects is $100,000 or 75% of the total eligible project costs.

Interest Rates and Terms

Interest Rate – The interest rate for the loan will be fixed at the time of approval of the loan and remain fixed for the duration of the repayment term. Contact CAN DO for the current interest rate. Interest Rates are set quarterly.

Terms – Depending on credit underwriting, PIDA may require that the term of the loan not exceed the term of any matching lending source with a lien senior to or shared with the PIDA lien.

  • Loans used to acquire land, buildings, or to renovate, expand, or construct a building may have a repayment period up to fifteen (15) years.
  • Loans used for machinery and equipment acquisitions may have a repayment period up to ten (10) years and the term cannot exceed the useful life of the equipment being financed. Please note that a 50% match is required and loans funded via the PIDA-MELF fund are subject to the job retention/creation requirements of one full-time job retained for every $35,000 loaned and/or one full-time job created for every $50,000 loaned.
  • Working capital and accounts receivable lines of credit shall not exceed a term of twelve months (1 year) and can be renewed annually up to a maximum of six (6) years.
  • Loans used to finance industrial park projects may have a repayment term up to fifteen (15) years.
  • Loans used to finance multi-tenant building projects may have a repayment term up to fifteen (15) years.
  • Loans used to implement pollution prevention or energy efficiency improvements shall have a term not to exceed ten (10) years.

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