PENNSYLVANIA ECONOMIC DEVELOPMENT FINANCING AUTHORITY (PEDFA) TAXABLE 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: All types of businesses needing access to low-cost capital

Eligible Uses:

• Land and building acquisition
• Building renovation and new construction
• Machinery and equipment acquisition and installation
• Designated infrastructure
• Refinancing
• Working capital

Where to Apply: MCIDC office

Amounts:

• Loans no less than $400,000
• Up to 100% of project costs

Terms/Conditions:

• Rates average 61% of prime interest rate
• Weekly variable interest rate tied to market for taxable bonds
• Term is based upon negotiated letter of credit
• Borrower generally must secure letter of credit from bank
• $500 fee due at time of application to be credited against the issuance fee when project closes