Real Estate Fund loans are provided through EDC Finance Corporation in conjunction with the Pennsylvania Industrial Development Authority (PIDA) to assist businesses acquiring, constructing, and renovating commercial real estate.
- Below market interest rates
- Long term fixed interest rates
Funding Uses & Purposes
- Land acquisition
- Building construction \ expansion \ renovation
- Soft costs related to above items
Borrowers must be involved in the following enterprises:
- Agricultural Processors
- National / Regional Headquarters
- Computer Operations Centers
Note: Industrial projects require a minimum of 25 full-time jobs. Headquarters and computer operations centers projects must have at least 125 full-time jobs. Headquarters must have facilities in at least two other states and a minimum project cost of $1,500,000.
EDC Finance will provide a PIDA Real Estate Fund loan in an amount up to 50% of eligible land, building, and related soft costs, typically in a first or shared first lien position. Pending credit review, Real Estate Fund loans in a second lien position may be considered, but will require a minimum 80% loan to value. Projects in a first lien position may qualify for an increased loan to value. The remaining project financing may come from a commercial bank or borrower injection.
- $2,000,000 maximum loan amount for all borrowers up to 50% of project costs
- 7 Year Fixed Interest Rate Option: 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
Borrowers are required to retain 1 full time job per $35,000 borrowed or create 1 full time job per $50,000. Job creation projects may count both retained and created jobs to determine the loan amount. Job attainment will be measured three years after loan closing.
- 1.5% commitment fee
- 1.0% PIDA approval & closing fee
- Title insurance is required