• Choose an option below. +

  • Bonds +

    PEDFA finances business projects by issuing bonds and lending the proceeds to eligible businesses. PEDFA provides pooled bond issues and stand alone issues for both tax-exempt and taxable bonds. PEDFA works with the network of local industrial development authorities to market, package, and manage its financing. Pooled issues provide advantages in that smaller projects are "pooled together" to provide access to lower cost financing to companies which otherwise could not.

    Eligible uses of PEDFA taxable and tax-exempt financing include the acquisition, site preparation, and testing of land; the acquisition, construction, rehabilitation, engineering, or architecture of buildings; and the acquisition, delivery, and installation of machinery and equipment. In addition, conventional bond financing can be used for working capital, including inventory, supplies, labor, and taxes as well as refinancing.

    The minimum amount of all loans is $400,000. The maximum loan amount for tax-exempt loans for manufacturing projects is $10 million. There is no maximum loan size for exempt facilities and nonprofit sponsored projects, nor is there a maximum loan amount for taxable bond financing. The term of the loan is a combination of the terms of the financed assets. For both conventional and tax-exempt bonds, real estate is financed for up to 30 years. Equipment is financed for up to 120 percent of its depreciable life for tax-exempt financing and for up to 15 years for conventional financing. Longer terms for conventional equipment financing are approved on a case-by-case basis.

    The following conditions apply to PEDFA financing: All taxable bond projects should create and/or preserve ten jobs. All tax exempt bond projects should create and/or retain one job for every $50,000 borrowed. Company must procure a Letter of Credit equal to the amount of bond financing.

    Businesses in the following categories are eligible for tax-exempt PEDFA financing: Manufacturing — For-profit firms that give new shapes, qualities, or combinations to materials through labor are eligible.

    Exempt Facilities — The federal law specifically provides for the financing of certain non-manufacturing facilities with tax-exempt bonds, including transportation facilities, solid waste disposal facilities, and mass sewage facilities.

    Nonprofit Entities — All firms, except for certain residential units, are eligible for conventional financing.

    All types of businesses needing access to low-cost capital are eligible for taxable PEDFA financing.


    Bond Financing

  • PIDA Loans +

    PIDA provides low-interest, long-term loans for companies to buy land and acquire, construct, renovate, and expand buildings. SEDCO will establish the project and, after the state's PIDA board approval, enter into arrangements to lease or sell the building to the company.

    PIDA funds can be used to finance only "bricks and mortar". Specifically, PIDA funds may go to the purchase of land and construction of a building, acquisition of an existing building, and/or acquisition and renovation of an existing building.

    SEDCO filing, administration and management fees are 1.00% of the total project cost. PIDA requires a commitment fee of 1% of the PIDA loan requested ($500 minimum).


    PIDA loans

  • MELF +

    The Machinery and Equipment Loan Fund offers low-interest financing for industrial entities. The funds may be used for the acquisition and installation of new or used machinery and equipment or to upgrade existing machinery and equipment.


    MELF Incentive

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