In response to mounting concerns regarding the current lending crisis and its effects on manufacturing and distribution, PIDC and the Pennsylvania Department of Community and Economic Development (DCED) have lowered interest rates on all major financing programs geared towards the Industrial Sector.
• PIDC Growth Loan: 2.75% (down from 3.5%), fixed for 15 years, can finance up to 45% of a total project or maximum $500,000.
• Pennsylvania Industrial Development Authority (PIDA): 3% (down from 4%), fixed for 15 years, can finance up to 45% of a total project or maximum of $2,250,000.
• Small Business First Fund (SBF): 3% (down from 4%, fixed for 15 years, can finance up to 45% of a total project or $200,000.
PIDC has also increased the amount of public financing available for each project under the Growth Loan Program. As of today, PIDC is willing to contribute funds for 45% of a total project cost in a subordinate lien position.
These changes are meant to assist both banks and borrowers complete transactions and continue with planned expansions. Given the state of the banking sector and the difficulty borrowers have had obtaining funds for projects, DCED and PIDC are confident that these rate changes will provide companies with ample and additional funds for their projects, while at the same time providing confidence and assurance to banks with subordinate public sector funding.
About Philadelphia Industrial Development Corporation (PIDC):
The Philadelphia Industrial Development Corporation, is a private, not-for-profit corporation created in 1958 by the Greater Philadelphia Chamber of Commerce and the Commerce Department of the City of Philadelphia to promote economic development and job creation throughout the City. PIDC provides financing programs and real estate products to business and developer client groups in all neighborhoods of Philadelphia.
For further information on PIDC contact Peter S. Longstreth, President, Philadelphia Industrial Development Corporation, 2600 Centre Square West, 1500 Market St., Philadelphia, PA 19102-2126, phone (215) 496-8181.
