RIDC is a state certified industrial development corporation who can assist your business in applying for Pennsylvania Industrial Development Authority (PIDA) low-interest loans.
The Pennsylvania Industrial Development Authority (PIDA) is a job creation and job retention agency of the Commonwealth of Pennsylvania, administered through the Department of Community and Economic Development. PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating or retaining full-time jobs and for the development of industrial parks, single and multi-tenant facilites.
- Land and building acquisitions
- Construction and renovation costs
- Machinery and equipment purchases
- Working capital and accounts receivable lines of credit
- Multi-tenant facility projects
- Agricultural Processor
- Agricultural Producer
- Industrial Enterprise
- Manufacturing Enterprise
- R&D Enterprise
- Hospitality Enterprise
- Defense Conversion Enterprise
- Recycling Enterprise
- Computer-Related Service Enterprise
- Construction Enterprise
- Child Day-Care enterprise
- Mining Enterprise
- KIZ Company
- Service Enterprise
The PIDA program finances a portion of total eligible project costs. The maximum participation amount is determined by a variety of factors such as the proposed use of the PIDA funds, the business enterprise type applying for financing, the amount of matching financing from sources outside of PIDA, and the number of full-time jobs to be retained or created. Loan approval is contingent upon meeting the program underwriting and collateral requirements.
- Up to 15 years for land and building acquisitions and construction/renovation projects
- Up to 10 years for machinery and equipment purchases
- Working capital and accounts receivable lines of credit have a term of 1 year and can be renewed.
Interest rates for the program are based on current market conditions. Effective through March 31, 2017 the rates are:
- Real Estate Loans
- Choice of Fixed for term of loan: 4.00%; OR
- Adjustable – fixed first seven years: 3.00% (resets after yr 7 to 10-year treasury rate +50 basis points (capped at 5.00% with a floor of 2.25%)
- Equipment Loans – 3.00% fixed rate for the full term of the loan
- Working capital and accounts receivable lines of credit – 4.00% fixed rate for 12 month period
- Pollution prevention and energy efficiency loans – 2.00% fixed rate for the full term of the loan
- PIDA charges a non-refundable loan commitment fee of 1% of the approved loan amount for loans greater than $400,000.
- RIDC charges a non-refundable loan commitment fee of 2% of the approved loan amount and a yearly service fee of $250. All legal fees are also paid by the loan recipient.
- All fees are subject to change. Please contact RIDC before submitting an application to confirm fees.
How to Apply
RIDC works with you to determine whether or not the PIDA loan program can assist with financing the needs of your business and will discuss with you in detail how the application process works. Contact us to learn more.