Real Estate Fund loans are provided through EDC Finance Corporation in conjunction with the Pennsylvania Industrial Development Authority (PIDA) to assist businesses acquiring, constructing, and renovating commercial real estate.


Key Benefits

  • Below market interest rates
  • Long term fixed interest rates

Funding Uses & Purposes

  • Land acquisition
  • Building construction \ expansion \ renovation
  • Soft costs related to above items


Borrowers must be involved in the following enterprises:

  • Agricultural Processors
  • Industrial
  • Manufacturing
  • National / Regional Headquarters
  • Computer Operations Centers

Note: Industrial projects require a minimum of 25 full-time jobs.  Headquarters and computer operations centers projects must have at least 125 full-time jobs.  Headquarters must have facilities in at least two other states and a minimum project cost of $1,500,000.


Loan Structure

EDC Finance will provide a PIDA Real Estate Fund loan in an amount up to 50% of eligible land, building, and related soft costs, typically in a first or shared first lien position.  Pending credit review, Real Estate Fund loans in a second lien position may be considered, but will require a minimum 80% loan to value.  Projects in a first lien position may qualify for an increased loan to value.  The remaining project financing may come from a commercial bank or borrower injection.


  • $2,000,000 maximum loan amount for all borrowers up to 50% of project costs


  • 7 Year Fixed Interest Rate Option: 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

Job Requirements

Borrowers are required to retain 1 full time job per $75,000 borrowed or create 1 full time job per $75,000.  Job creation projects may count both retained and created jobs to determine the loan amount.  Job attainment will be measured three years after loan closing.

Closing Costs

  • 1.5% commitment fee
  • 1.0% PIDA approval & closing fee
  • Title insurance is required