PA-DCED Announces Interest Rates For PIDA Business Loan Program Through June 30, 2016.

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For Real Estate loans financing eligible land and building costs, borrowers will have the following two interest rate options:

1)      Fixed interest rate for the full term of the loan (up to a 15-year period). This option is calculated using the 10-year treasury yield +150 basis points.  Based on the current 10-year treasury yield, the fixed rate option is 3.25% for the life of the loan.

2)      Fixed interest rate for a seven (7) year period set at the 10-year treasury rate +50 basis points. After seven years, the rate will reset to the 10-year treasury rate +50 basis points. Please note, the reset rate is limited to a 200 basis point increase/decrease and has a floor of 2.25%. The reset rate is then fixed for the duration of the loan.

For this option, the rate is fixed for (7) years at 2.25% and will reset to the 10-year treasury rate +50 basis points after the (7) year period. The reset interest rate is capped at 4.25% (200 point increase) with a 2.25% floor and will be fixed for the remaining term of the loan.

For Equipment Loans – 3.25% fixed rate for the full term of the loan.

For Working Capital and Accounts Receivable Lines of Credit – 3.25% fixed rate for 12 month period.

For Pollution Prevention and Energy Efficiency Loans – 2% fixed rate for the full term of the loan.

In the seven county Northeastern Pennsylvania Region, the PIDA loan program is operated by the Northeastern Pennsylvania Alliance (NEPA).  The NEPA service area includes Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne counties.

The Northeastern Pennsylvania Alliance also maintains low interest rates on its Business Loan Programs.  Fixed rates range from 1% to 4%. NEPA’s origination and service fees are waived on all its loan programs.

For more information on the NEPA Alliance business finance programs and services, contact Dave Nat, Business Finance Manager, at dnat@nepa-alliance.org or call 570-655-5581.

The NEPA Alliance, a regional community and economic development agency, serves the seven counties of Northeastern Pennsylvania including Carbon, Lackawanna, Luzerne, Monroe, Pike, Schuylkill and Wayne. NEPA Alliance services include Business Financing, Government Contracting Assistance, International Trade Assistance, Non Profit Assistance, Transportation Planning, Research and Information, and Local Government Services. For more information about NEPA Alliance visit www.nepa-alliance.org or call 866-758-1929.  “This institution is an equal opportunity provider and employer.”