Pennsylvania Regional Center – New American Development Fund

Overview

Low-cost loans to enterprises with job-creating projects located within the state’s federally-designated EB5 regional center. The federal EB5 investor program grants eligible foreign investors the opportunity to obtain an EB5 visa if they commit to invest funds in job-producing development projects in the United States. Funds may be used to finance new construction, the acquisition of plant, property and equipment, building rehabilitation, tenant improvements and working capital.

Uses

  • new construction
  • land and building acquisition and rehabilitation
  • machinery and equipment acquisition
  • tenant improvements
  • working capital

Eligibility

Creditworthy developers, businesses and other enterprises with projects to be located within the boundaries of Pennsylvania’s federally-designated EB5 regional center. Projects must generally be located in either a rural area or an area of high unemployment or economic distress.

Funding

Loans no less than $1,000,000 – no upper limit. In general, $500,000 may be borrowed for every 10 new direct or indirect jobs that the borrower can demonstrate the project will create.

Terms

Loan term is generally 5 years, interest-only, with a balloon payment at the end of the term. Interest rate is determined on a case-by-case basis. Borrowers will be required to post collateral to secure a NADF loan. Often a first lien position on a piece of real property or other asset will be required.

How to Apply

DCED’s Center for Private Financing (please refer to Guidelines)

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