The loan approval information listed below was released by the office of Pennsylvania Governor Tom Wolf.
What’s a PIDA loan? Seedcopa underwrites, packages and submits applications to the state of Pennsylvania for these low-interest loans. And three substantial ones were recently approved.
Good Crop, Inc., is an agri-processor and fruit juice manufacturer. The company was approved for a $800,000, 10-year machinery and equipment loan at a 3 percent rate through the Chester County Economic Development Council. The loan will enable the company to purchase machinery and equipment for the production and packaging of fruit juices at the company’s leased manufacturing space. Through this project, the company is expected to retain 12 and create 10 full-time jobs within three years.
A Greener Tomorrow, Inc., a recycling company, was approved for a $400,000, 10-year real estate loan at a 2 percent reset rate through the Chester County Economic Development Council. Through the loan, the company will be able to acquire the real estate, including two warehouses totaling 8,160 sq. ft. and conduct environmental remediation of the project site. The company is expected to create eight full-time jobs within three years.
Plum Creek Farm, LLC, an agri-processor, was approved for a $1 million, 15-year real estate loan at a 2 percent reset rate through the Greater Berks Development Fund for the construction of a new 12,000 sq. ft. building, providing expanded space for the production of ice cream, smoked meats and other prepared foods as well as an expanded market area for the sale of their goods and other local produce. The project will also allow the company to operate six days a week, year-round. The company is expected to create 20 full-time jobs within three years.
Major Benefits of PIDA loans:
- -In general, any business is eligible as long as it falls under the categories listed above and has less than 100 employees
- -Eligible businesses include agricultural processors and producers, Keystone Innovation Zone companies, developers, as well as enterprises engaged in the following industries: Industrial, manufacturing, research and development, hospitality, defense conversion, recycling, computer-related services, construction, child daycare, mining, and service
- -PIDA funding generally ranges between $50,000 and $2,000,000, with total projects potentially exceeding $4,000,000.
- -Interest rates are very attractive and well below market! Depending on the project, rates and terms can be fixed up to 15 years. Lines of credit have a term of one year with a fixed interest rate.
- -Loan funds can be used for the following:
- -Land and building acquisition, construction and/or renovation (along with eligible related costs)
- -Machinery and equipment costs
- -Industrial park projects where the eventual tenants will be the types of businesses listed above
- -Working capital lines of credit
- -Accounts receivable lines of credit