CommDev1

Community Development Fund loans are provided through EDC Finance Corporation in conjunction with the Pennsylvania Industrial Development Authority (PIDA) to assist growing businesses with less than 100 employees located in Columbia, Elizabethtown, Ephrata, Lancaster City, Millersville, Manheim / Manor / Mount Joy Twp with incentive financing for major fixed assets such as land, buildings, and equipment.

Key Benefits

  • Below market interest rates
  • Fixed interest rates up to 15 years
  • Loan to value opportunities up to 90%

Funding Uses & Purposes

  • Land acquisition
  • Building construction \ expansion \ renovation
  • Long-term machinery & equipment
  • Soft costs related to above items

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Eligibility

Borrowers must be a for-profit entity that is involved in business-to-business service, mercantile, commercial, or retail sectors and is located in one of the above noted communities in Lancaster County.

Loan Structure

EDC Finance will provide a PIDA Community Development loan in an amount up to 50% of project costs in either a subordinate or senior position to other project financing. The remaining project financing may come from a commercial bank or borrower injection with a maximum 90% loan to value on real estate or 80% loan to value on equipment.

Amounts

  • $200,000 maximum loan amount for all borrowers up to 50% of project costs

Terms

  • 7 Year Fixed Interest Rate Option: Real estate borrowers may select the option of the posted 7 year fixed rate loan, which will reset for the remaining term to the 10-year Treasury rate + 50 basis points with a 2% maximum increase or decrease compared to the original interest rate (floor of 2.25%)
  • Full Term Fixed Interest Rate: All borrowers not selecting the 7 year rate option will receive the posted fixed rate option for the life of the loan
  • Up to a 15 year term for real estate
  •  Up to a 10 year term for machinery and equipment

Job Requirements

Borrowers are required to retain the number of full-time jobs employed by the business at the time the application is submitted.

Closing Costs

  • 1.5% commitment fee
  • $500 recording costs
  • Title insurance is required for real estate transactions
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