Photos courtesy Yippee! Farms -
You don’t have to be a farmer, or a land buyer, to enjoy the benefits of a PIDA loan. But when Yippee! Farms suddenly had the opportunity to buy land, they wanted to jump on it. And you can too – for land, a building, equipment or machinery – at a fixed interest rate of 2.5% for up to 15 years.
The Situation
Yippee! Farms, based in Cochranville, PA, wanted to purchase more than 111 acres to expand its dairy farm in Chester County and Berks County. The fourth-generation farm is run by husband-and-wife team Arlin and Deborah Benner, who employ 32 people. They sought to continue using the land previously known as the Laffey Farm to milk cows and grow feed.
The Solution
Working with Seedcopa and the lender, Fulton Bank, the Benners attained a PIDA loan for $400,000, with the Fulton Bank loan of $850,000. The Benners chose an adjustable interest rate of 1.75% for seven years. For the following eight years, the interest rate is adjusted and re-fixed no more that 2% up or down.
Key Points
- Pennsylvania Industrial Development Authority (PIDA) is a state loan and line of credit program that combines various low interest loans
- Loans can be used for land and building acquisition, construction and/or renovation (along with eligible related costs), machinery and equipment costs and industrial park projects
- Eligible businesses include agricultural processors and producers, Keystone Innovation Zone companies, developers, as well as enterprises engaged in 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
- In general, any business is eligible as long as it falls under the categories listed above and has less than 100 employees
To see if your business is eligible and learn more, contact Seedcopa Relationship Manager Marie Shires at mshires@seedcopa.com or 610.458.5700.
