BACKGROUND

RACP is a grant program offered by the Commonwealth of Pennsylvania to not-for-profit entities for qualifying economic development projects with cultural, historic or civic significance.  Philadelphia Authority for Industrial Development (PAID) is the designated intermediary for the Commonwealth in all RACP grants for Philadelphia projects and PIDC performs PAID’s administrative functions.

USES

1) Property Acquisition.

2) Site Preparation.

3) Construction/Building Renovation.

4) Construction Period Interest.

5) Permits, Approvals.

FINANCING

The minimum individual project cost is $1 million. 

Grant amounts vary and disbursements occur on a reimbursement basis only.

PROCESS AND TIMING

While the timing varies widely with each project, transaction cycles usually include the following steps:

1) The initial step in a specific funding request is the inclusion in the Commonwealth’s Capital Budget by a local legislator. 

Next, the Governor’s Office of the Budget (OB) must allocate approved funding to the project in a specific budget cycle. 

2) PIDC/PAID staff assists the client (Sub-Grantee) to prepare and to submit an Application to the Commonwealth’s Office of the Budget (OB).

3) OB reviews and approves the Application and a Grant Agreement is executed with PAID, which, in turn, executes a Sub-Grant Agreement with the client (Sub-Grantee).

4) The client performs the project-related work and submits payment requests which, following satisfactory reviews by PAID and OB, are funded.

FEES

PAID charges an administrative fee equal to 1 percent of the grant amount.  No portion of the fee may be paid from the proceeds of the grant.  The first 25 percent of the fee is due upon executing the Sub-Grant Agreement between PAID and the Sub-Grantee.  The remaining portion is paid in installments as the Sub-Grantee draws the funds over the life of the project.

For more information, contact SAM RHOADS, 215.496.8132