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.

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Key Benefits

  • Below market interest rates
  • Long term fixed interest rates

Funding Uses & Purposes

  • Land acquisition
  • Building construction \ expansion \ renovation
  • Soft costs related to above items

Eligibility

Borrowers must be involved in the following enterprises:

  • Agricultural Processors
  • Industrial
  • Manufacturing
  • 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.

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Loan Structure

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.

Amounts

  • $2,000,000 maximum loan amount for all borrowers up to 50% of project costs

Terms

  • 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

Job Requirements

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.

Closing Costs

  • 1.5% commitment fee
  • 1.0% PIDA approval & closing fee
  • Title insurance is required