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BACKGROUND
PIDC administers the Philadelphia Authority for Industrial Development (PAID) Bond Program. Tax-exempt bond financing is available to certain manufacturing and/or nonprofit 501(c)(3) facilities.
USES
1) Land and Building Acquisition.
2) New Construction.
3) Building Rehabilitation.
4) Machinery and Equipment Acquisition.
5) Working Capital.
6) Refinancing Existing Tax-Exempt Debt.
7) Settlement and Legal Costs.
FINANCING
All manufacturing borrowers (and affiliates) of tax-exempt debt can incur up to $10 million of capital costs in the city of Philadelphia during any six-year period beginning three years prior to the date of the bond closing. The manufacturer cannot have outstanding tax-exempt debt anywhere in the United States in excess of $40 million.
Nonprofit entities are not permitted to have more than $150 million of outstanding tax-exempt debt. PAID issues bonds that are non-recourse to PAID and PIDC, requiring the nonprofit borrower or bank guarantor to be responsible for the repayment of the debt to the Bond purchasers. The Bond purchaser and/or guarantor in consultation with investment broker or underwriter and borrowers determine collateral, amount, term and rate.
For more information, contact SAM RHOADS, 215.496.8132
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