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Pennsylvania Economic Development Financing Authority (PEDFA) Taxable Bond Program

Overview

Taxable bonds, both in pooled transactions and stand-alone transactions, may be used to finance land, building, equipment, working capital and refinancings.

Uses

  • land and building acquisition
  • building renovation and new construction
  • machinery and equipment acquisition and installation
  • designated infrastructure
  • refinancing
  • working capital

Eligibility

All types of businesses and projects needing access to low-cost capital

Funding

  • Loans no less than $400,000
  • Up to 100 percent of project costs

Terms

The weekly variable interest rates for pooled transactions are tied to the market for taxable bonds. The bond 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