CAN DO, Inc., the economic development organization serving Greater Hazleton and beyond, announced that Pennsylvania Industrial Development Authority (PIDA) products and loans are available at record-low interest rates for the 2016 third quarter.
Interest rates for several products dropped a quarter of a percent since the second quarter, including those for fixed interest rate full-term loans for up to a 15-year period.
PIDA loan applications must be packaged, underwritten and submitted by a Certified Economic Development Organization such as CAN DO, which is authorized to assist with applications in Greater Hazleton and throughout Luzerne County.
PIDA provides funding up to 50 percent of project costs for eligible businesses that commit to creating and retaining full-time jobs. The new rates are in effect for loan applications received through September 30, 2016.
“These record-low interest rates make this an ideal time for businesses to take action on any building or expansion projects or equipment upgrades they may have been considering. To be able to receive a fixed interest rate of three percent for a full-term loan up to 15 years is unheard of,” CAN DO Director of Economic Development James C. Kelshaw said. “As a Certified Economic Development Organization for the Commonwealth of Pennsylvania, CAN DO can assist businesses with PIDA financing as well as additional financing needs.”
Borrowers seeking real estate loans for financing eligible land and building costs for owner-occupied property acquisition, and expansion, or industrial multi-tenant buildings have two interest rate options. The fixed interest rate for the full term of the loan (up to 15 years) has dropped to a fixed rate of 3 percent. The second option is a seven-year fixed rate of 2.25 percent with a reset for the remaining term. Loans can go up to a maximum of $2,250,000.
To be eligible for real estate or equipment loans from PIDA, borrowers must commit to creating one full-time job for every $50,000 borrowed or retain one full-time job for every $35,000 borrowed over a three-year period.
Equipment loans will have a 3 percent fixed rate for up to a 10-year term with a maximum loan amount of $400,000.
PIDA’s working capital and accounts receivable lines of credit also hold a 3 percent fixed rate for a one-year period.
Eligible businesses, with the exception of mining enterprises and developers, with 100 or less full-time employees can receive up to $100,000. A match is not required except for service enterprises, which are required to match 50 percent. Eligible businesses with less than 250 full-time employees involved in exporting activities can receive up to $350,000 and no match is required.
Pollution prevention and energy efficiency loans now have a 2 percent 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.
