Small Business Financing
Pennsylvania Industrial Development Authority (PIDA)
The Pennsylvania Industrial Development Authority (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. SEDCO is a CEDO serving all of Schuylkill County.
Eligible Enterprise Types
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Funding Details:
| Eligible Real Estate Costs | Land & Building: May include, but is not limited to acquisition, construction, renovation, site preparation, engineering, architectural, testing, utilities, site mapping, legal and other related costs. |
| Loan Amount | 50% of the eligible total project costs up to $2,000,000 or $2,250,000 for special designated zones as defined in the PIDA Guidelines. |
| Eligible Match | A loan made from the PIDA Fund must be matched by other eligible Real Estate costs. |
| Term | Up to 15-yrs. (straight amortization) or 10-yr. term with a 20-yr. amortization. |
| Collateral | A loan made from the PIDA Fund must be secured by no less than a second or participating second mortgage on the project premises. |
| Jobs | $75,000 per job created/retained. |
| *Additional Info | The PIDA Fund is utilized for real estate projects where the loan amount is greater than $400,000 or the eligible operating entity has more than 100 full-time employees worldwide. |
Multi-Tenant Facility Projects
Real estate acquisition, construction or renovation projects where the facility will house two or more eligible enterprise types as indicated above.
- 50% of the eligible total project costs up to $2,250,000 when the PIDA loan is secured by a first or participating first mortgage on the project premises.
- 40% of the eligible total project costs up to $2,250,000 when the PIDA loan is secured by a second or participating second mortgage on the project premises.
- One tenant cannot occupy more than 80% of the building’s total square footage.
- No more than 15% of the building’s total square footage can be occupied by an ineligible tenant.
Industrial Park Projects
Involving the acquisition and development of land for eventual sale to eligible enterprise types as indicated above.
- 75% of the eligible total project costs up to $2,250,000 and the loan must be secured by a first or participating first mortgage on the project premises.
- Multi-Tenant and Industrial Park projects are exempt from job requirements.
- Typically, a feasibility study is required when the project is speculative in nature. Please consult with PIDA if requesting a waiver of this policy.
***PROGRAM IS CURRENTLY CAPPED AT $400,000***
Eligible Enterprise Types
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Funding Details:
| Eligible M&E Costs | M&E costs may include but are not limited to the refurbishment of existing equipment and the acquisition, delivery and installation of new equipment. |
| Loan Amount | 50% of the eligible total project costs up to $5,000,000. |
| Eligible Match | A loan made from the MELF Fund must be matched by other eligible M&E costs. |
| Term | Up to 10-yrs. (straight amortization) and the term cannot exceed the useful life of the equipment being financed. |
| Collateral | A loan made from the MELF Fund must be secured by no less than a second lien on the project equipment. |
| Jobs | $75,000 per job created/retained. |
| Additional Info | The MELF Fund is utilized for M&E projects where the loan amount is greater than $400,000 or the eligible operating entity has more than 100 full-time employees worldwide. |
Eligible Enterprise Types
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Funding Details:
| Eligible Costs | Loan proceeds can be used to finance land and building, M&E and/or working capital costs. |
| Land & Building | May include but is not limited to acquisition, construction, renovation, site preparation, engineering, architectural, testing, utilities, site mapping, legal and other related costs. |
| Machinery & Equipment | May include but is not limited to the refurbishment of existing equipment and the acquisition, delivery and installation of new equipment. |
| Working Capital | Can be in the form of a term loan or line of credit. Open to the needs of the business but typically finances day to day operating costs, inventory, raw materials, or A/R. |
| Loan Amount | 50% of the total eligible costs as defined above up to $400,000. Uses can be mixed. For example, a loan could finance both eligible real estate and M&E costs. However, please note working capital financing cannot account for more than $100,000 of the overall loan amount. |
| Eligible Match | Because the PIDA/SBF account is flexible and can be used to finance real estate, machinery & equipment and working capital costs, the match requirements are also flexible. If a project is financing real estate and/or M&E, the loan is required to be matched by either eligible real estate or M&E costs. While working capital term loans require a match, lines of credit do not. *A loan funded through PIDA-SBF may use eligible land and building and M&E costs incurred during the 12-month period prior to the date of submission of the application towards meeting the 50% match requirement. |
| Terms | |
| Land & Building | Up to 15-yrs. (straight amortization) or 10-yr. term with a 20-yr. amortization. |
| Machinery & Equipment | Up to 10-yrs. (straight amortization) and the term cannot exceed the useful life of the equipment being financed. *If loan proceeds are financing both real estate and equipment costs, a blended term is calculated. |
| Working Capital / Accounts Receivable | Up to 3-yrs. for term loans / 1-year term for lines of credit but can be renewed up to a maximum of 6 years. |
| Collateral | Typically secured by the highest lien available on the asset being financed and overall collateral security is dependent upon the credit of the borrower. |
| Jobs | $75,000 per job created/retained. *Ag Producers – exempt from job requirements. |
| *Additional Info | The PIDA/SBF account is utilized for the above enterprise types where the loan amount is $400,000 or less and the eligible operating entity has 100 or fewer full-time employees worldwide. |