PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY (PEDFA) TAX-EXEMPT BOND PROGRAM

Description: An issuer of tax-exempt and taxable bonds in pooled transactions and stand-alone transactions. Bond funds are loaned to businesses and can be used to finance land, building, equipment, working capital, and refinances.

Eligibility:

• Manufacturing
• Nonprofit
• Energy
• Solid waste disposal
• Transportation facilities

Eligible Uses:

• Land and building acquisition
• Building renovation and new construction
• Machinery and equipment acquisition and installation
• Designated infrastructure
• Tax-exempt bond refunding

Where to Apply: MCIDC office

Amounts:

• Loans no less than $400,000 and no more than $10,000,000 for manufacturers
• No upper limits for other projects
• Up to 100% of project costs

Terms/Conditions:

• Interest rate is 85% of prime
• Weekly variable interest rate tied to market for tax-exempt bonds
• Up to 30-year term
• Borrower generally must secure letter of credit from bank