If you want to develop real estate in low income communities, revitalize central business districts, or redevelop brownfields, then consider “Building PA” to fund what you need.
Building PA is a state loan program created to fund projects in unserved or underserved areas with the goal of improving the overall economy in these areas.
Borrowers can use the funds to acquire, develop, and/or redevelop properties that will renew the community or communities in question
The total project size is not limited. The Building PA portion can range from $1 million to $30 million and typically matches the amount of cash equity from the developer or investor
Funds can be used for industrial, commercial, and multi-use projects
Rate can match that of the senior lender, with a set floor rate
The typical loan structure is a 10 year balloon payment, with a 20 to 25 year amortization
Construction financing is possible, with upfront discussion
The loan is a mezzanine loan program, taking subordinate lien positions behind the senior lender following construction. In other words, if the loan is not paid back in time or in full, the lender has the right to convert the debt capital to an ownership or equity interest in the company
Industry segments on which this loan is focused: advanced materials; agricultural and food processing; alternative energy; business support centers; construction; life sciences; manufacturing; national or regional headquarters; research and development; and technology
Can be combined with other loan programs