- Below market interest rates
- Fixed interest rates up to 15 years
- Loan to value opportunities up to 90%
Funding Uses & Purposes
- Land acquisition
- Building construction \ expansion \ renovation
- Long-term machinery & equipment
- Soft costs related to above items
Borrowers must be a for-profit entity that is involved in business-to-business service, mercantile, commercial, or retail sectors and is located in one of the above noted communities in Lancaster County.
EDC Finance will provide a PIDA Community Development loan in an amount up to 50% of project costs in either a subordinate or senior position to other project financing. The remaining project financing may come from a commercial bank or borrower injection with a maximum 90% loan to value on real estate or 80% loan to value on equipment.
- $200,000 maximum loan amount for all borrowers up to 50% of project costs
- 7 Year Fixed Interest Rate Option: Real estate borrowers may select the option of the posted 7 year fixed rate loan, which will reset for the remaining term to the 10-year Treasury rate + 50 basis points with a 2% maximum increase or decrease compared to the original interest rate (floor of 2.25%)
- Full Term Fixed Interest Rate: All borrowers not selecting the 7 year rate option will receive the posted fixed rate option for the life of the loan
- Up to a 15 year term for real estate
- Up to a 10 year term for machinery and equipment
Borrowers are required to retain the number of full-time jobs employed by the business at the time the application is submitted.
- 1.5% commitment fee
- $500 recording costs
- Title insurance is required for real estate transactions