PIDC Welcome Fund Loan Program

BACKGROUND

The PIDC Welcome Fund provides a source of low-cost capital generally available to commercial, retail, industrial or non-profit firms that create significant job growth, located or planning to locate in Philadelphia.

USES

• New Construction
• Property Acquisition
• Building Rehabilitation
• Tenant Improvements
• Machinery and Equipment Acquisition
• Working Capital

FINANCING

• Loan Amount:  ranges from $2,000,000 to $50,000,000 in increments of $500,000.  One job must be created for every $50,000 funded within two years of final funding.  Some indirect jobs can be counted to meet the criteria that one job be created for each $50,000 of loan amount.
• Term:  5 years.
• Interest Rates:  Targeted to be fixed at half of Prime with a floor of 2%.
• Collateral:  Usually fixed assets with a loan to value ratio of 80% and secured by a mortgage.  Collateral, however, is discussed on a case-by-case basis.

PROCESS AND TIMING

• Loans can take six to eight months to process.  Interim financing or bridge loans can be utilized while the Welcome Fund loan is being processed.
• The program provides an opportunity for foreign investors to fund a US business and to receive a provisional visa that under certain conditions becomes permanent.
• PIDC staff assists the clients to complete the application.
• PIDC staff evaluates and underwrites the loan request.
• Following consideration and approval of the loan request by the PIDC Loan Committee, the loan would be recommended to the foreign investors.
• Interested foreign investors, please contact CanAm Enterprises, LLC at 718-624-7850.

• Application:  $500, payable at time of application.
• Settlement:  1.5% of the loan amount, due upon settlement.
• Legal:  Varies with transaction, usually $10,000 to $15,000, payable at settlement

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