Skip to content

Small Business Financing

Pennsylvania Industrial Development Authority (PIDA)

The Pennsylvania Industrial Development Authority (PIDA) provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by a network of Certified Economic Development Organizations (CEDOs) that partner with PIDA to administer the program. SEDCO is a CEDO serving all of Schuylkill County.

Eligible Enterprise Types

  • Manufacturing Enterprises
  • Industrial Enterprises
  • Healthcare Enterprises
  • Agricultural Processors
  • R&D Enterprises

Funding Details:

Eligible Real Estate Costs Land & Building: May include, but is not limited to acquisition, construction, renovation, site preparation, engineering, architectural, testing, utilities, site mapping, legal and other related costs.
Loan Amount 50% of the eligible total project costs up to $2,000,000 or $2,250,000 for special designated zones as defined in the PIDA Guidelines.
Eligible Match A loan made from the PIDA Fund must be matched by other eligible Real Estate costs.
Term Up to 15-yrs. (straight amortization) or 10-yr. term with a 20-yr. amortization.
Collateral A loan made from the PIDA Fund must be secured by no less than a second or participating second mortgage on the project premises.
Jobs $75,000 per job created/retained.
*Additional Info The PIDA Fund is utilized for real estate projects where the loan amount is greater than $400,000 or the eligible operating entity has more than 100 full-time employees worldwide.

Multi-Tenant Facility Projects

Real estate acquisition, construction or renovation projects where the facility will house two or more eligible enterprise types as indicated above.

  • 50% of the eligible total project costs up to $2,250,000 when the PIDA loan is secured by a first or participating first mortgage on the project premises.
  • 40% of the eligible total project costs up to $2,250,000 when the PIDA loan is secured by a second or participating second mortgage on the project premises.
  • One tenant cannot occupy more than 80% of the building’s total square footage.
  • No more than 15% of the building’s total square footage can be occupied by an ineligible tenant.

Industrial Park Projects

Involving the acquisition and development of land for eventual sale to eligible enterprise types as indicated above.

  • 75% of the eligible total project costs up to $2,250,000 and the loan must be secured by a first or participating first mortgage on the project premises.
  • Multi-Tenant and Industrial Park projects are exempt from job requirements.
  • Typically, a feasibility study is required when the project is speculative in nature. Please consult with PIDA if requesting a waiver of this policy.

***PROGRAM IS CURRENTLY CAPPED AT $400,000***

Eligible Enterprise Types

  • Manufacturing Enterprises
  • Industrial Enterprises
  • Agricultural Processors
  • Healthcare Enterprises

Funding Details:

Eligible M&E Costs M&E costs may include but are not limited to the refurbishment of existing equipment and the acquisition, delivery and installation of new equipment.
Loan Amount 50% of the eligible total project costs up to $5,000,000.
Eligible Match A loan made from the MELF Fund must be matched by other eligible M&E costs.
Term Up to 10-yrs. (straight amortization) and the term cannot exceed the useful life of the equipment being financed.
Collateral A loan made from the MELF Fund must be secured by no less than a second lien on the project equipment.
Jobs $75,000 per job created/retained.
Additional Info The MELF Fund is utilized for M&E projects where the loan amount is greater than $400,000 or the eligible operating entity has more than 100 full-time employees worldwide.

Eligible Enterprise Types

  • Agricultural Processors
  • Agricultural Producers
  • Industrial Enterprises
  • Manufacturing Enterprises
  • R & D Enterprises
  • Hospitality Enterprises
  • Defense Conversion Enterprises
  • Recycling Enterprises
  • Computer-Related Service Enterprises
  • Construction Enterprises
  • Child Day-Care Enterprises

Funding Details:

Eligible Costs Loan proceeds can be used to finance land and building, M&E and/or working capital costs.
Land & Building May include but is not limited to acquisition, construction, renovation, site preparation, engineering, architectural, testing, utilities, site mapping, legal and other related costs.
Machinery & Equipment May include but is not limited to the refurbishment of existing equipment and the acquisition, delivery and installation of new equipment.
Working Capital Can be in the form of a term loan or line of credit. Open to the needs of the business but typically finances day to day operating costs, inventory, raw materials, or A/R.
Loan Amount 50% of the total eligible costs as defined above up to $400,000. Uses can be mixed. For example, a loan could finance both eligible real estate and M&E costs. However, please note working capital financing cannot account for more than $100,000 of the overall loan amount.
Eligible Match Because the PIDA/SBF account is flexible and can be used to finance real estate, machinery & equipment and working capital costs, the match requirements are also flexible. If a project is financing real estate and/or M&E, the loan is required to be matched by either eligible real estate or M&E costs. While working capital term loans require a match, lines of credit do not. *A loan funded through PIDA-SBF may use eligible land and building and M&E costs incurred during the 12-month period prior to the date of submission of the application towards meeting the 50% match requirement.
Terms
Land & Building Up to 15-yrs. (straight amortization) or 10-yr. term with a 20-yr. amortization.
Machinery & Equipment Up to 10-yrs. (straight amortization) and the term cannot exceed the useful life of the equipment being financed. *If loan proceeds are financing both real estate and equipment costs, a blended term is calculated.
Working Capital / Accounts Receivable Up to 3-yrs. for term loans / 1-year term for lines of credit but can be renewed up to a maximum of 6 years.
Collateral Typically secured by the highest lien available on the asset being financed and overall collateral security is dependent upon the credit of the borrower.
Jobs $75,000 per job created/retained. *Ag Producers – exempt from job requirements.
*Additional Info The PIDA/SBF account is utilized for the above enterprise types where the loan amount is $400,000 or less and the eligible operating entity has 100 or fewer full-time employees worldwide.
Back To Top