Industrial Park Fund loans are provided through EDC Finance Corporation in conjunction with the Pennsylvania Industrial Development Authority (PIDA) to assist developers acquiring land for the purpose of an industrial park development project.
Key Benefits
- Below market interest rates
- Flexible repayment terms
- Long term fixed interest rates
Funding Uses & Purposes
- Land acquisition
- Soft costs related to land acquisition
Eligibility
Borrowers acquiring land for the purpose of developing an industrial park.
Loan Structure
EDC Finance will provide a PIDA Industrial Park Fund loan in an amount up to 75% of eligible land and related soft costs with a required sole first mortgage or shared first mortgage on the project land. The remaining project financing may come from a commercial bank or borrower injection with a maximum 80% loan to value on real estate.
Amounts
- $2,250,000 maximum loan amount for all borrowers up to 75% of project costs
Terms
- 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
- Accruing interest for the first two years, payable in full at the end of year two
- Interest only payments due monthly in years 3-5
- Amortizing payments of principal and interest due monthly during years 6-15
Job Requirements
Not applicable
Closing Costs
- 1.5% commitment fee
- 1.0% PIDA approval & closing fee
- Title insurance is required