Financing
The Armstrong County IDC assists qualifying companies in identifying and obtaining low interest loans best suited to their situation and specific needs. The IDC also works closely with the Governor’s Action Team, Pennsylvania Department of Community and Economic Development, and other organizations within the Commonwealth to provide a broad range of financial options.
Revolving Loan Fund
The Armstrong County Industrial Development Council recently created its own Revolving Loan Fund (RLF). The Revolving Loan Fund specializes in gap financing, or resolving cash shortages that would prevent a successful closing. Eligible uses for loans include the purchase of equipment and land, and the improvement of real estate and building facilities.
Pennsylvania Industrial Development Authority (PIDA)
The Pennsylvania Industrial Development Authority provides low interest loan financing for land and building acquisition, construction, and renovation. These initiatives are intended to serve as a catalyst in the creation and retention of jobs. Specifications include:
- 4% interest rate, depending upon local unemployment rate (Rates are subject to change; contact Armstrong County IDC for current rates);
- Up to 15-year term on land and buildings;
- Disbursement to applicant based upon reimbursable expenses;
- $35,000 cost per job created or retained (no cost per job requirement on industrial park or multi-tenant projects).
For more information, please click here to obtain PIDA guidelines.
Pennsylvania Economic Development Financing Authority (PEDFA)
The PEDFA program provides tax-exempt and taxable bonds, in both pooled and stand-alone transactions, to be used to finance land, building, equipment, working capital, and refinancing.
- Since 1989, PEDFA rates have averaged 46% of prime interest rate.
- Weekly variable interest rate tied to market for tax-exempt bonds.
- Up to a 30-year term.
- Borrower generally must secure letter of credit from bank.
- $500 fee due at time of application, to be credited against the issuance fee when project closes.
For more information, please click below to obtain PEDFA guidelines
Taxable Bonds
Tax-Exempt Bonds
Small Business First (SBF)
The Small Business First program provides funding for small businesses including low interest loan financing for land and building acquisition and construction, machinery and equipment purchases, and working capital.
- 4% interest rate.
- $25,000 cost per job retained or created.
- Up to 15-year term, for land and building.
- Up to 10-year term, for machinery and equipment.
- Up to 3-year term, for working capital.
For more information, please click here to obtain SBF guidelines.
Machinery and Equipment Loan Fund (MELF)
MELF provides low-interest loans that enable companies to acquire and install new or used machinery and equipment, or to upgrade existing machinery and equipment.
- 4% interest rate.
- Up to 10 year term, depending upon the useful life of the machine being financed.
- $25,000 cost per job retained or created.
- The project must be directly related to the manufacturing process.
For more information, please click here to obtain MELF guidelines.