PEDFA Bond Financing Program

PEDFA provides cost-effective financing to businesses by issuing bonds, selling the bonds to private investors, and lending the proceeds to eligible businesses

Pennsylvania Economic Development Financing Authority (PEDFA) Bond Financing

PEDFA administers both a tax exempt and a taxable bond program which can be used for land and building acquisition, building renovation and new construction, machinery and equipment acquisition and installation, designed infrastructure, refinancing and working capital. PEDFA’s competitive interest rates and affordable closing costs make the financing cost effective for projects of all sizes. Depending on the size of the project, the bond may be a stand-alone bond or it may be part of our Composite Bond Pool.

There are two types of bonds:
PEDFA Tax-Exempt

Tax-Exempt bonds are bonds for which the interest earned by the bondholders is excluded from federal income tax. Since these bonds are more attractive to investors, the interest cost of Tax-Exempt bonds is restricted by federal law.

PEDFA Taxable

Taxable bonds have a higher interest rate than Tax-Exempt bonds, but they are not subject to the same stringent tax requirements as Tax-Exempt bonds. All businesses qualified to do business in Pennsylvania except speculative activities may be eligible for taxable financing. There are also fewer restrictions on the uses of the funds. PEDFA Applications must be submitted by a local Industrial Development Authority (IDA) or Industrial Development Corporation (IDC). Please see this list of IDAs and IDCs.

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