ELIGIBILITY

The PIDA Loan Program is generally available to any industrial firm located, or planning to locate, in Philadelphia. The program is intended to finance primarily owner-user, labor-intensive warehouse, distribution and manufacturing firms.  However, PIDA may also participate in financing certain office building projects such as owner-occupied national or regional headquarters and owner-occupied buildings, which are computer or clerical operations. 

USES

◊ Construction cost of new facilities (land and building) 
◊ Acquisition and rehabilitation of existing buildings
◊ Expansion of existing buildings                  
◊ Physical improvements to an existing building
◊ Architectural and engineering fees pertaining to the project
In addition, there are possible real estate transfer tax savings using the PIDA program.

FINANCING

PIDA currently may lend up to 50% of the eligible project cost for companies on a second mortgage basis.
PIDA will loan up to $35,000 per each job created or retained over a three-year period.
Currently, the maximum level of PIDA participation is $2,000,000; for multi-occupancy projects the maximum level is $2,250,000 and for businesses located in specially designated zones, the maximum level is $2,250,000.
10% equity participation is required if the company has more than 50 employees.
The current PIDA interest rate is 3.75% - available for terms up to 15 years.
All loans must be secured; sufficient cash flow to support debt service must be demonstrated.

PROCESS AND TIMING

Applicant obtains the necessary commitment(s) for the non-PIDA portion of the financing.  The project is then submitted to PIDC for review by the PIDC Loan Committee, the PIDC-FC Board of Directors, and the PIDA Board of Directors.
The average time required from receipt of the completed application and supporting materials to property settlement is approximately 90 to 120 days.
The application material must be received 60 days prior to the PIDA Board meeting; prior to being submitted to PIDA, the project must be approved by PIDC's Board of Directors.
No construction or property settlement can commence before the project is approved by PIDA.  Interim funding is required; PIDA funds are not disbursed until the project is complete.

FEES

Application Fee: $500, payable at the time of application submission - nonrefundable
Origination Fee: 0.5% of loan amount, payable upon acceptance of PIDA's commitment
Servicing Fee: 1% of monthly PIDA amortization payment – minimum $25/mo.
Legal Fee: .75% of loan amount – payable upon settlement of PIDA loan
Commitment Fee (PIDA): 1% of loan amount-minimum of $500, payable upon acceptance of PIDA's commitment
Fees are subject to change.  Please confirm all transaction fees with PIDC prior to application.

For more information, contact SAM RHOADS, 215.496.8132