Pennsylvania Economic Development Financing Authority (PEDFA) Tax Exempt Bond Program
Tax-exempt bonds, both in pooled transactions and stand-alone transactions, may be used to finance land, building, equipment, working capital and (in some cases) refinancings.
- land and building acquisition
- building renovation and new construction
- machinery and equipment acquisition and installation
- designated infrastructure
- refinancing (of bonds that were also tax-exempt initially)
- working capital
- Loans no less than $400,000
- Up to 100% of project costs
All types of businesses and projects needing access to low-cost capital
The weekly variable interest rates for pooled transactions are tied to market for tax-exempt bonds. The bond term for pooled transactions is based upon a negotiated letter of credit- the borrower generally must secure a letter of credit from the bank. Terms for stand-alone bonds may be negotiated. Interest rates for stand-alone transactions may be fixed rather than variable in some cases. A $500 fee due at time of application is to be credited against the issuance fee when the project closes.
How to Apply
Industrial Development Authorities and Corporations