August 2009 

Pennsylvania Industrial Development Authority Expands in Lancaster

More capital made available for local projects

Effective July 1, 2009, the Pennsylvania Industrial Development Authority (PIDA) announced revised participation rate levels for Lancaster County projects until June 30, 2010. PIDA, in conjunction with EDC Finance Corporation, provides long term fixed rate financing often at an advantageous interest rate for certain businesses taking on new economic development projects.

The revised participation rates allow projects in Lancaster City to borrow between 60-70% of project costs at a fixed 3.75% interest rate. Projects throughout the rest of Lancaster County can borrow between 30-50% of project costs at a fixed 4.75% interest rate. Borrowers currently with less than 50 employees are usually eligible for the higher participation level.

Additionally, PIDA has waived all mandatory equity requirements for Lancaster City projects and for Lancaster County projects involving companies with less than 50 employees. Final project equity requirements will be determined on a case by case basis depending on collateral and other credit criteria.

The following types of projects qualify for PIDA financing:
- Manufacturing
- Industrial
- Warehousing & Distribution
- R&D Facilities
- Agri-Business
- Computer Operations Centers
- National Headquarters Offices
- Keystone Innovation Zone Companies

Eligible PIDA project costs include:
- Land Acquisition
- Construction
- Engineering/Architectural
- Site Preparation & Testing
- Renovation
- Legal and other related costs

PIDA financing is capped at $2,000,000 for any one particular project and was previously limited to a 30-40% participation rate throughout Lancaster City and County. In many cases, PIDA will subordinate to the bank lending that typically makes up the balance of the project's financing structure.

Other Issues

2010

• February (RZFBP)
• January (SBA 504 Fee Elimination)

2009

• December (PIDA)
• September (SBA 504 Debenture)
• August (PIDA Expansion)
• July (FIF & Benchmark Interest Rate)
• June (SBF & FIF Changes)
• May (Energy Programs)
• March (Bankers' Update)
• January (SBA Update)
• January (SBA 504)