Reading, PA – The Greater Reading Chamber Alliance (GRCA) announced that the Pennsylvania Industrial Development Authority (PIDA) announced a limited-time drop in the interest rates for economic development loans to businesses. The PIDA program offers low-interest loans and lines of credit to eligible businesses that commit to creating and retaining full-time jobs. The Greater Berks Development Fund (GBDF) is the affiliate of the Greater Reading Chamber Alliance (GRCA) that administers PIDA loans and other financing programs.
Right now, PIDA’s interest rates have been lowered to as low as 2% for real estate and 3% for equipment financing for any PIDA borrower whose loan application is received on or before September 30, 2019. Depending on the project, rates and terms can be fixed up to 15 years, and the rates are well below market level.
Many businesses are eligible for this type of loan. PIDA is not a substitute for conventional bank lending but works in conjunction with banks or other lenders to provide as much as 50% of the project cost to a maximum of $2,000,000. PIDA’s below market interest rate is a major benefit for cash flow savings. Likewise, often PIDA can be valuable in structuring a project with subordinated lien positions and relaxed loan-to-value requirements.
For working capital and accounts receivable lines of credit the rate is fixed at 3% for a 12-month period. For pollution prevention and energy efficiency loans the rate is 2% for the full term of the loan.
With decades of experience, GBDF staff can work with businesses of all types and sizes to walk them through the process. The GBDF has processed well over 300 PIDA loans over the decades to companies including Berks Packing Company, Inc., Brentwood Industries, Inc., East Penn Manufacturing Co., Inc., and Reading Truck Body, LLC, to name a few. In 2018, the GBDF approved 13 PIDA loans totaling over $11.7 M of financing for Berks County businesses and projects.
A broad range of projects are eligible through PIDA including agriculture. A recent project that was approved for PIDA assistance was in the acquisition of an approximately 95-acre farm on the Fleetwood-Lyons Road that will be used for corn, wheat, and soybean production.
The program can consider early stage and start-up businesses as well.
For details on PIDA lending terms and conditions as well as eligibility, call Chris Witmer at the GRCA at 610-898-7794 or send him an email at [email protected].