The Industrial Development Authority (IDA) is a federal, tax-exempt bank loan designed to create or retain projects for economic and employment benefits throughout Pennsylvania.
Because of the program’s federal and state tax exemptions, it offers a win/win to both lender and borrower.
Eligible entities are manufacturers, non-profit businesses, and first-time farmers.
Some IDA loan benefits include:
Grantees can use funds to:
- Acquire and develop commercial, owner–occupied properties
- Purchase equipment
- Pay for associated soft costs
- And in some instances refinance existing debt
Loans range between $2 million and $10 million
The lender sets the loan’s terms and rates, which are contingent on the scope and scale of the project
Lower loan rates because the lender’s interest earned on the loan is federally tax exempt and state exempt, as well.
- Lenders transfer the savings to the borrower via lower interest rates
Loan terms are based upon how the recipient uses the funds.
- As an example, real estate projects having longer amortizations (up to 25 years)