Pennsylvania Industrial Development Authority (PIDA) loans provide low-interest financing for land and building acquisition, machinery and equipment, working capital and energy-efficient projects. Applications for PIDA eligible projects in Cumberland County need to be submitted through Cumberland Area Economic Development Corp (CAEDC).
The PIDA program also now incorporates previous programs that were called the Small Business First (SBF), the Community Economic Development (CED), and the Machinery and Equipment Loan Fund (MELF). Call us now at (717) 240-7180 or fill out our contact form to get started!
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SUCCESS STORIES
CAEDC assisted Eleven Oaks with a $227,500 PIDA loan to acquire farmland to grow their Wagyu Beef business. Find details here.
Classic Drycleaners & Laundromats worked with CAEDC to secure a $200,000 PIDA loan for energy-efficient upgrades to their machines at their Carlisle location. Find details here.
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ELIGIBLE PROJECTS
- Land and building acquisitions
- Construction and renovation costs
- Machinery and equipment purchases
- Working capital and accounts receivable lines of credit
- Multi-tenant facility projects
- Industrial park projects
ELIGIBLE BORROWERS
- Manufacturing
- Industrial
- Agricultural Processors
- Research and Development
- Hospitality
- Defense Conversion
- Recycling
- Construction
- Child Day-care
- Retail and Service
- Export
- Computer-related Service Enterprises
LOAN LIMITS
- Land and Building: $200,000 to $2,250,000 or 50% to 75% of the total eligible land and building costs, whichever is less
- Machinery and Equipment: $200,000 to $400,000 or 50% of the total eligible M&E costs, whichever is less
- Working Capital and Accounts Receivable: The maximum line of credit amount is $100,000 to $350,000
- Pollution Prevention and Energy Efficiency: The maximum loan amount is $100,000 or 75% of the total eligible P&E project costs, whichever is less
TERMS
- Up to 15 years for land and building acquisitions and construction / renovation projects
- Up to 10 years for machinery and equipment purchases
- Working capital and accounts receivable lines of credit have a term of 1 year and can be renewed
- At least one (1) job must be retained for every $35,000 borrowed. For projects that will result in jobs being created, at least one (1) job must be created for every $50,000 borrowed.
RATES
NOTE: Rates are adjusted quarterly. Rates shown below are from 1st quarter 2025. Second quarter rates will be updated when available.
Land and Building (Real Estate)
For term loans with a regular amortization;
- Fixed interest rate for the full term of the loan (up to a 15-year period) is set at the current 10-year Treasury yield + 100 basis points. Based on the current 10-year Treasury yield, the fixed rate option is 5.25% for the life of the loan.
- Fixed interest rate for a seven-year period is set at the 10-year Treasury yield. After seven years, the rate will reset to then-current 10-year Treasury yield. Please note that the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current 10-year Treasury yield, the rate for the initial (7) year period is 4.25%.
For 10-year term loans with a 20-year amortization period;
- Fixed interest rate for the full term of the loan (10-year period). This option is calculated using the 10-year Treasury yield + 100 basis points. Based on the current 10-year Treasury yield, the fixed rate option is 5.25% for the life of the loan.
- Fixed interest rate for a five (5) year period set at the 10-year Treasury yield. After five years, the rate will reset to the then-current 10-year Treasury yield. Please note that the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current 10-year Treasury yield, the rate for the initial (5) year period is 4.25%.
PIDA-MELF Equipment Loans
- 5.25% fixed rate for the full term of the loan
Export Finance Working Capital and Accounts Receivable Lines of Credit
- 5.25% fixed rate for a 12-month period
Pollution Prevention and Energy Efficiency Loans
- 2.00% fixed rate for the full term of the loan
PIDA-SBF Account Loans
- 5.00% fixed rate for the full term of the loan. Currently, a reset interest rate will not be available for real estate loans funded under the PIDA-SBF account as, statutorily, there is an interest rate ceiling that does not allow the interest rate to exceed 5.00%.
*PIDA-SBF account loans are real estate, equipment, and/or working capital loans to eligible agricultural processors, agricultural producers, industrial enterprises, manufacturing enterprises, research and development enterprises, hospitality enterprises, defense conversion enterprises, recycling enterprises, computer-related service enterprises, construction enterprises, and child day-care enterprises, whereas the loan amount is $400,000 or less and the eligible enterprise has 100 or fewer full-time employees worldwide at the time of application submission.
PIDA-CED Account Loans
- 5.00% fixed rate for the full term of the loan. Currently, a reset interest rate will not be available for real estate loans funded under the PIDA-CED account as, statutorily, there is an interest rate ceiling that does not allow the interest rate to exceed 5.00%.