Pennsylvania Economic Development Financing Authority (PEDFA) Tax Exempt Bond Program

January 9, 2015

Overview

Tax-exempt and taxable bonds, both in pooled transactions and stand-alone transactions, to 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
  • tax-exempt bond refinancing

Funding

Loans no less than $400,000 and no more than $10 million for manufacturers; No upper limit for other projects; Up to 100% of project costs

Terms

Since 1989, rates have averaged 46 percent of the prime interest rate. The weekly variable interest rate is tied to market for tax-exempt bonds. Bonds are available for up to 30-year term. Borrower generally must secure letter of credit from bank and pay a $500 fee due at time of application, to be credited against the issuance fee when project closes.

How to Apply

Industrial Development Authorities and Corporations

Eligibility

  • manufacturing
  • nonprofit 501(c) (3)
  • solid waste disposal
  • wastewater treatment
  • transportation facilities
  • assisted living/housing