CAN DO, a Certified Economic Development Organization (CEDO) for Luzerne County, has announced the newly released interest rates from the Pennsylvania Industrial Development Authority (PIDA) and the Small Business Administration (SBA) 504 loan programs.

SBA 504 and PIDA are two revolving loan funds that assist in the growth of businesses of all sizes in Pennsylvania. They provide long-term, low-interest rate loans to eligible businesses that commit to creating and/or retaining full-time jobs. Eligible costs include, but are not limited to, land and building costs, machinery and equipment costs, refinancing of existing commercial real estate and/or equipment debt and working capital.

CAN DO announced that PIDA’s two interest rates for the fourth quarter of 2019 (October 2019 to December 2019) will feature an adjustable rate of 1.75%, which is a fixed rate for the first half of the loan term, and a fixed rate of 2.75% for the whole term of the loan. The term for a PIDA loan is up to fifteen (15) years for real estate, up to ten (10) years for machinery and equipment, and up to three (3) years for working capital. The maximum loan amounts are $2.25 million for real estate, $400,000 for machinery and equipment (or 50% of the total project cost, whichever is less), and $100,000 for working capital. Eligible applicants can borrow $35,000 for every full-time job retained and/or $50,000 for every full-time job created within three years of the closing of the loan.

CAN DO also announced that the SBA 504 November 2019 rates are starting at 3.80% fixed for twenty-five (25) years and 3.74% fixed for twenty (20) years for real estate loans. The SBA 504 November 2019 rate for machinery and equipment is starting at 3.93% fixed for up to ten (10) years. The maximum loan amount for eligible businesses is $5.5 million or 40% of the total project cost, whichever is less. To be considered for an SBA 504 loan, the business’s tangible net worth cannot exceed $15 million and the business’s average net income after Federal income taxes (excluding carry-over losses) for the two full fiscal years prior to application cannot exceed $5 million. Eligible applicants can borrow $65,000 for every new full-time job created.

In its role as a CEDO, CAN DO assists businesses of all sizes in Greater Hazleton and Luzerne County in obtaining the funding they need to expand or upgrade their facilities or their machinery and equipment. Mark Minnig, CAN DO’s Economic Development Specialist, said the benefits companies receive through CAN DO business financing options include up to 90% loan to value, 10% equity options and subordinate financing.

Minnig stated, “CAN DO’s business financing programs are here to assist businesses in Greater Hazleton and throughout Luzerne County with all of their financing needs. PIDA and SBA 504’s low interest rate incentives provide an excellent opportunity for businesses of all sizes throughout Greater Hazleton and Luzerne County to obtain the financing they need at an affordable rate. This incentive will allow companies to increase investments and grow jobs in our community.”

For more information on PIDA, SBA 504 or other loan programs, visit CAN DO’s business finance website at www.hazletoncando.com/financing/business-finance.