CAN DO, Inc., announced updated interest rate options for Pennsylvania Industrial Development Authority (PIDA) loans for the 2017 second quarter and program enhancements for machinery and equipment loans and financing for eligible real estate costs. The new rates are in effect for loan applications received through June 30, 2017.
The first program enhancement increases the lending limit for machinery and equipment loans funded from the PIDA-Machinery and Equipment Loan Fund (MELF) account from $400,000 to $1.5 million. The lending increase applies to projects where PIDA is financing machinery and equipment acquisitions for eligible manufacturing, industrial, biotechnology, and computer related service enterprises. A 50 percent match is required. 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.
The second enhancement involves loans that are used to finance eligible real estate costs such as acquisition, construction, or renovation projects. In addition to the customary 15-year term loans with a regular 15-year amortization, PIDA is now offering a 10-year loan term with payments based on a 20-year amortization period and a balloon payment due at the end of the 10-year term.
If a borrower chooses the 10-year term/20-year amortization option, the borrower will be required to pay off the loan in full at the end of the 10-year period or refinance the remaining balance with a lending institution outside of PIDA.
PIDA provides funding up to 50 percent of project costs for eligible businesses that commit to creating and retaining full-time jobs. PIDA loan applications can only be packaged, underwritten and submitted by Certified Economic Development Organizations such as CAN DO, which is authorized to provide these services in the Greater Hazleton and Luzerne County areas.
CAN DO Economic Development Specialist Charles F. McElwee III said CAN DO is ready to assist all businesses in Greater Hazleton and throughout Luzerne County with their financing needs and acknowledged that the latest PIDA rates and enhancements will help make PIDA a more attractive option for businesses that are expanding.
McElwee said, “These affordable interest rates provide businesses throughout Greater Hazleton and all of Luzerne County with a chance to obtain the financing that they need to improve and expand their business operations. As a Certified Economic Development Organization for the Commonwealth of Pennsylvania, CAN DO can assist businesses with PIDA financing as well as any additional financing needs.”
Borrowers seeking real estate loans for financing eligible land and building costs for owner-occupied property acquisition, and expansion, or industrial multi-tenant buildings will have two interest rate options. The first is a fixed interested rate for the full term of the loan (up to 15 years) at a fixed rate of 4 percent. The second option is for a seven-year period with a fixed rate of 3 percent and a reset for the remaining term.
Equipment loans will have a 4 percent fixed rate for up to a 10-year term, working capital and accounts receivable lines of credit will hold a 4 percent fixed rate for a one-year period, and pollution prevention and energy efficiency loans have a 2 percent fixed rate for the full term of the loan.
For more information on accessing the new PIDA loan rates, contact Charles F. McElwee at CAN DO, Inc., at (570) 455-1508.