CAN DO, the economic development organization serving Greater Hazleton and beyond, announced updated interest rate options for Pennsylvania Industrial Development Authority (PIDA) loans for the 2015 second quarter.
PIDA provides low-interest loans and lines of credit for eligible businesses that commit to creating and retaining full-time jobs and for the development of industrial parks and multi-tenant facilities. Loan applications are packaged and underwritten by certified economic development organizations that partner with PIDA to administer the program.
The new rates will be in effect for loan applications received through June 30, 2015.
“CAN DO is a certified economic development provider for the state of Pennsylvania and is the PIDA provider for Luzerne County,” CAN DO Director of Economic Development James C. Kelshaw said. “Business owners can contact CAN DO for assistance in creating their loan applications.”
Borrowers seeking real estate loans financing eligible land and building costs will have two interest rate options. A fixed interested rate for the full term of the loan (up to a 15-year period) will be calculated using the 10-year treasury yield plus 100 basis points. Based on the current 10-year treasury yield, the fixed rate option is 3.00% for the life of the loan.
A fixed interest rate for a seven (7) year period is set at the 10-year treasury rate. After seven years, the rate will reset to the 10-year treasury rate. The reset rate is limited to a 200-basis-point increase/decrease and has a floor of 2.25%. The reset rate is then fixed for the duration of the loan. For this option, the rate is fixed for (7) years at 2.25% and will reset to the 10-year treasury rate after the seven (7) year period. The reset interest rate is capped at 4.25% (200-point increase) with a 2.25% floor and will be fixed for the remaining term of the loan.
Equipment loans will have a 3.00% fixed rate for the full term of the loan. Working capital and accounts receivable lines of credit will hold a 3.00% fixed rate for a 12-month period. Pollution prevention and energy efficiency loans now have a 2.00% fixed rate for the full term of the loan.
For more information on accessing the new rates, contact James C. Kelshaw at CAN DO, Inc., at (570) 455-1508.