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1. PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY (PEDFA)

OVERVIEW:
PEDFA administers both a tax exempt and a taxable bond program which can be used for land and building acquisition, building renovation and new construction, machinery and equipment acquisition and installation, designed infrastructure, refinancing and working capital. PEDFA’s competitive interest rates and affordable closing costs make the financing cost effective for projects of all sizes. Depending on the size of the project, the bond may be a stand-alone bond or it may be part of a Composite Bond Pool.

THERE ARE TWO TYPES OF BONDS:

PEDFA Tax-Exempt
Tax-Exempt bonds are bonds for which the interest earned by the bondholders is excluded from federal income tax. Since these bonds are more attractive to investors, the interest cost of Tax-Exempt bonds is restricted by federal law.

PEDFA Taxable
Taxable bonds have a higher interest rate than Tax-Exempt bonds, but they are not subject to the same stringent tax requirements as Tax-Exempt bonds. All businesses qualified to do business in Pennsylvania except speculative activities may be eligible for taxable financing. There are also fewer restrictions on the uses of the funds. PEDFA Applications must be submitted by a local Industrial Development Authority (IDA) or Industrial Development Corporation (IDC).

FOR MORE INFORMATION:
Ph: (724) 830-3061
Fx: (724) 830-3611

2. PENNSYLVANIA INDUSTRIAL DEVELOPMENT AUTHORITY (PIDA)

OVERVIEW:
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.

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. You may contact PIDA directly or our offices at the Westmoreland Development Council for the current interest rate.

FOR MORE INFORMATION:
PIDA Guidelines

CONTACT US:
Ph: (724) 830-3061
Fx: (724) 830-3611