Pennsylvania Community Development Bank Loan Program (PCD Bank)
Overview
Debt financing for Community Development Financial Institutions (CDFIs)
Uses
Community and economic development loans that support job creation
Eligibility
- Debt financing for Community Development Financial Institutions (CDFIs) Public funds (25 percent) matched with private sector funds (75 percent) to create a loan pool for eligible CDFIs
- State accredited community development financial institution
- CDFI must meet state accreditation standards and program underwriting guidelines
- Minimum two years lending experience
- Focus on economic development and job creation
Funding
Loans from $250,000 to $5 million
Terms
- Vary – up to 10 years
- Principal and interest repaid quarterly
- Interest rate is a blend between public rate of 50 basis points and private rate of U.S. Treasury rate plus 100 basis points
- Collateral required
- Monitoring covenants established for each borrower