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).

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.

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.

RATE

Land and Building (Real Estate)

For term loans with a regular amortization;

  • 15-year fixed interest rate is 2.50%
  • 7-year fixed interest rate is 1.50%

For 10-year term loans with a 20-year amortization period;

  • 10-year fixed interest rate is 2.50%
  • 5-year fixed interest rate is 1.50%

Equipment

  • 2.50% fixed rate for the full term of the loan

Working Capital

  • 2.50% fixed rate for 12 month period

Pollution Prevention and Energy Efficiency Loans

  • 2.00% fixed rate for the full term of the loan