PIDC Growth Loan Program

BACKGROUND

The PIDC Growth Loan Program is generally available to industrial and commercial enterprises located or planning to locate in Philadelphia. The program is intended to finance job-creating activities and is funded by a variety of federal, state and local government sources.

USES

• Property Acquisition
• New Construction
• Building Renovation/Improvement
• Machinery/Equipment
• Soft Costs – legal, accounting, design, permits, appraisals.

FINANCING

PIDC evaluates and underwrites each requirement, utilizing the most appropriate funding sources.  Specific terms and conditions will, therefore, vary based on transaction characteristics, funding sources and market conditions:

• Loan Amount:  $75,000 - $750,000, depending on the specific transaction and funding sources.
• Term:  Loan term will usually match the useful life of the underlying asset, up to a maximum of 20 years.
• Interest Rates:  While below-market interest rates are generally available, specific pricing will, once again, vary depending on funding source and market condition.
• Collateral:  While loans are generally collateralized by fixed assets or personal and corporate guarantees, PIDC loans are often subordinated to private financing.

PROCESS AND TIMING

A 90-120 day transaction cycle is typical and includes PIDC underwriting and Board authorization, approval by the government funding sources, satisfaction of commitment terms and settlement.

FEES

Fees vary with each transaction and may include Application (minimum $500), Origination, Commitment, Settlement and Servicing Fees, depending on the funding source.

For more information, contact Susan Lowry, 215-496-8161, slowry@pidc-pa.org .