RIDC is a state cerx00740069x00660069ed industrial development corporax00740069on who can assist your business in applying for Pennsylvania Industrial Development Authority PIDA lowintere ID: 836981
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1 Pennsylvania Industrial Development Auth
Pennsylvania Industrial Development Authority RIDC is a state cered industrial development corporaon who can assist your business in applying for Pennsylvania Industrial Development Authority (PIDA) low-interest loans. The Pennsylvania Industrial Development Authority (PIDA) is a job creaon and job retenon agency of the Commonwealth of Pennsylvania. It is administered through the Department of Community and Economic Development, Center for Business Financing Loans Division. PIDA was established in 1956 to provide low-interest loans to local non-prot industrial development corporaons (IDCs) for eligible businesses that commit to creang or retaining jobs. RIDC and Loan Program Overview Application Submission Schedule If you are aiming for this month’s meeng agenda The applicaon must be in Harrisburg by : The applicaon materials must be received in RIDC oce by: January November 15 February January 1 March February 1 January 15 March 1 February 15 May March 15 May 1 May 15 August September August 1 October September 1 August 15 November October 1 September 15 November 1 October 15 PIDA/RIDC Success Stories In partnership with Carnegie Mellon University, RIDC developed and completed the 136,000 SF Collaborave Innovaon Center (CIC) in 2005 with PIDA’s assistance. RIDC assisted American Bridge in obtaining two loans from PIDA. For More Information, Contact: Colleen B. Poremski, Corporate Secretary 412.315.6442 cporemski@ridc.org Loan Uses Facilies 2) Acquision of Exisng Buildings 3) Expansion or renovaon of Exisng Buildings 4) So Costs, A&E, legal, closing, nancing fees. *If you are looking for State assistance for other uses, please see newpa.com Eligible Businesses Manufacturing Operaons, Research and Development, Agricultural Operaons and Industrial Operaons Financing Loan Amount: Maximum loan amount is $2 million. For projects on browneld sites, KOZ’s Enterprise Zones or Act 47 Communies, the for every $35,000 loaned. Term : PIDA’s t erm matches the convenonal lender’s term up to a maximum 15 year term. Collateral: All PIDA loans are secured with xed assets (shared rst or second mortgage) and other collateral which may be required upon review of company and personal nancial statements. Inter est Rate/Parcipaon Rates for Q1 2015: Interest Rate Choice Real estate loans for eligible land and building costs, borrowers will have the following two interest rate opons for new loan applicaons: 1. Fixed interest rate for the full term of the loan (up to a 15-yr period). The applicable rate for new approvals would be calculated each quarter and set at the 10-year treasury yield +100 basis points. 2. Fixed interest rate for a seven (7) year period set at the 10-year treasury rate. Aer seven years, the rate would be reset to the 10-year treasury rate. The reset rate is limited to a 200 basis point increase/decrease from the original approval rate. The reset rate would be xed for the duraon of the loan. Interest Rates Fixed: 3.5% Fixed (rst seven years): 2.5%% Parcipaon Rates Industrial Projects – 50% of project cost in a Parcipang First Mortgage; OR 40% of project cost if in a Second Mortgage Industrial Park Loans – 75% of project cost Process and Timing The transacon cycle will take 90 - 120 days and typically includes the following steps: 1) RIDC assists the client in compleng and subming the Single Applicaon for Assistance. 2) RIDC sta evaluates the loan request and presents to its Board of Directors. 3) Following consideraon and approval by the PIDA Board of Directors and RIDC Board of Directors, PIDA issues a Commitment Leer to the applicant 4) Since PIDA funds are disbursed throughout Regional Industrial Development Corporation of Southwestern Pennsylvania RIDC 210 Sixth Avenue Suite 3620 Pittsburgh, PA 15222 www.ridc.org 412.471.3939 phone 412.471.1740 fax funding be obtained Fees* RIDC Fees: a) 2% of the loan amount, payable at closing (can be nanced as part of project cost) b) Servicing Fee: $250 per year payable January 1 of each year c) Legal Fees: Client to pay all RIDC’s legal fees which are approximately $5,000 PIDA Fee: Commitment Fee: 1% of loan amount *All fee s are subject to change. Please contact the RIDC before subming an applicaon to conrm fees. Pennsylvania Industrial Development Authority RIDC and Loan Program Overview Approximately one week aer the PIDA Board Meeng, a commitment leer will arrive from PIDA. It will come to RIDC, we will review it for correctness. We will then forward the le݀
2 074;er onto you. Once you have review
074;er onto you. Once you have reviewed the terms and condions and signed the commitment leer, it should be returned to my aenon at RIDC. Included with the commitment leer should be a check made payable to Pennsylvania Industrial Development Authority in the amount of 1% of the loan. RIDC signs the commitment leer and returns it to PIDA along with the commitment fee. This must be completed within 30 days. When the commitment leer is returned to PIDA, RIDC then sends a copy of the leer to RIDC’s legal counsel, Babst, Calland, Clements & Zomnir. There are several documents between RIDC, the industrial occupant, the benecial owner and any guarantors which must be draed and executed prior to or at closing. These will be draed and sent to you and your legal counsel within a month or so. Please remember that RIDC’s legal fees are to be paid by you. As invoices are received on a monthly basis, they will be sent to you for direct payment. For a simple project, they can average around $5,000. If the project has problems or complicaons, the fees will be higher. These fees, combined with your company’s outside legal fees, up to $50,000 maximum are PIDA eligible project costs. Your commitment leer includes a place for you to name your outside legal counsel. This informaon is given to the Commonwealth’s legal oce and they begin draing a closing checklist, cost adavit and a leer detailing what must be done in order to schedule a closing. The closing must be scheduled within one year of the loan approval. Closing Loan closing must occur within one year of the loan approval. Disbursements may occur at closing or subsequent to closing. New construcon projects – prior to closing a survey is required showing the locaon of any present and proposed improvements, all present and proposed ulity lines, easements, rights of way, restricons, encroachments and building set-back lines, together with a metes and bounds descripon of the land parcel. Several items are required in order to schedule a closing: 1. Adavit of Costs - This form must be submied for all drawdown requests and not prior to closing (unless you plan to have the 1st draw occur at closing). Please retain on a consistent basis copies of all invoices or checks for your project. A detailed spreadsheet along with these copies can be submied to RIDC and we will nalize the Adavit of Costs and send to you for signature. This is a much easier process if copies are kept as the project progresses. In addion, the more organized and detailed your submission is to RIDC, the quicker the process will take. 2. Insurance documentaon . Requirements are outlined on the closing checklist you receive from the legal oce. The Cercate of Insurance should be submied to me for forwarding onto PIDA. 3. Survey. Please note that the as-built survey must be submied to RIDC and the Commonwealth’s legal oce. The cercaon is included with the closing checklist sent by the legal oce. 4. Copy of Deed to property ; copy of proposed deed to RIDC and back to your company 5. Bank loan documents (if any). 6. Copy of Lease Agreement (if any). 7. Phase I Environmental Survey It is important to remember that any changes to the project (ie. Ownership, changes in nancing) MUST be cleared rst with the PIDA Board through RIDC before they can go into eect. Disbursement Procedures Up to three disbursements can be made. Acquision projects – all loan funds must be drawn down within 6 months of closing. PIDA may rescind its loan commitment or increase the interest rate on the loan by 1% if this deadline is not met. New Construcon – an inial draw of at least 10% of the loan must be made within 12 months of closing. PIDA may rescind its loan commitment or increase the interest rate on the loan by 1% if this deadline is not met. The enre loan must be drawn down within 24 months of closing. Addional interest rate penales may be imposed if there are further delays in drawdowns. If a disbursement is to occur at the me of closing, closing instrucons and PIDA funds will be sent to a licensed tle insurance agent selected by the borrower who must provide PIDA with a closing services leer from a tle insurance company which will protect PIDA’s interests in the event the closing agent does not comply with our closing instrucons. For More Information, Contact: Colleen B. Poremski, Corporate Secretary 412.315.6442 cporemski@ridc.org These guidelines will help you understand the process once your loan has received Board approval, through loan closing and nal disbursement