PIDA Loan | About, Rates, Eligibility, Application Process And Terms

In this article, we\’d be seeing all you need to know about the Pennsylvania Industrial Development Authority (PIDA), from the application process to eligibility and more. Loans are very essential part of modern-day finance, helping individuals, businesses, and organizations to access funds needed to achieve their financial goals.

Before we being the article proper, I\’ll need to explain what a loan means, and why people collect loans. A loan is a financial arrangement between a lender and a borrower, where the borrower receives a specific amount of money and agrees to repay it over time, usually with interest.

Loans come in various forms, including personal loans, business loans, mortgages, and student loans. They can be secured or unsecured, meaning that the borrower may or may not have to provide collateral to secure the loan. Secured loans typically have lower interest rates because the lender has a tangible asset to hold as security, while unsecured loans are riskier for the lender and therefore come with higher interest rates.

Reasons People Take Loans

We take loans for a variety of reasons, including:

  • Major purchases: Loans are commonly used to finance major purchases such as a home, a car, or other expensive items. These types of loans are typically paid back over a longer period, and the interest rate is usually lower than other forms of credit.
  • For business financing: Entrepreneurs and small business owners often take out loans to start or expand their businesses. This can include funding for inventory, equipment, or marketing expenses.
  • Home improvements: Loans can also be used for home renovations or repairs, such as a new roof or a kitchen remodel. These types of loans can increase the value of a home and can be paid back over a longer period.
  • To fund education expenses: Loans are commonly used to pay for education expenses, such as tuition, textbooks, and housing. These types of loans can be used for both undergraduate and graduate studies.
  • Consolidating debt: Individuals may also take out loans to consolidate high-interest debt, such as credit card balances. Consolidation loans can help reduce monthly payments and simplify finances.
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Pennsylvania Industrial Development Authority (PIDA) Overview

PIDA (meaning Pennsylvania Industrial Development Authority) offers low-interest loans and lines of credit to qualifying businesses that commit to creating and maintaining full-time employment opportunities, as well as supporting the development of industrial parks and multi-tenant facilities.

These loans are processed and evaluated by a network of certified economic development organizations (CEDOs) that partner with PIDA to implement the program.

Uses of the PIDA Loan and Elibility Projects

PIDA financing is to be used for construction and renovation costs, land-building acquisitions, purchases of machinery and equipment, multi-tenant facility projects, industrial park projects and working capital and accounts receivable lines of credit.

PIDA financing is available for a diverse range of industry sectors, including manufacturing, industrial, agricultural, research and development, hospitality, defense conversion, recycling, construction, child day care, retail and service, export, and computer-related service enterprises.

Below are some projects that are eligible for the PIDA loan:

  • Machinery and equipment purchases
  • Industrial park projects
  • Construction and renovation costs
  • Land and building acquisitions
  • Multi-tenant facility projects
  • Working capital and accounts receivable lines of credit

Eligible borrowers include:

  • Industrial
  • Child Day-care
  • Computer-related Service Enterprises
  • Research and Development
  • Export
  • Hospitality
  • Construction
  • Retail and Service
  • Manufacturing
  • Defense Conversion
  • Agricultural Processors
  • Recycling

PIDA Loan Terms

The loan terms for PIDA financing vary depending on the purpose of the loan. For land and building acquisitions and construction/renovation projects, the loan term can be up to 15 years, while for machinery and equipment purchases, it can be up to 10 years. Working capital and accounts receivable lines of credit have a one-year term and can be renewed.

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To be eligible for PIDA financing, businesses must adhere to specific job creation or retention requirements. For every $35,000 borrowed, at least one (1) job must be retained. In the case of projects that are expected to create new job opportunities, at least one (1) job must be created for every $50,000 borrowed.

Kindly note that the interest rates for the program are determined by current market conditions and can be obtained by contacting the PIDA office or the CEDO in the county where the business is located.

How to Apply for PIDA Loan

The loan application process for PIDA financing is facilitated by a certified economic development organization (CEDO) that serves the county where the business is located or plans to be located. The CEDO will collaborate with the applicant to determine whether the PIDA loan program is suitable for the financing requirements of their business and provide an in-depth overview of the application process.

To check out a comprehensive directory of CEDOs by county, kindly visit

Loan Limits

The loan limits vary depending on the purpose of the loan. For land and building projects, the loan amount can range from $200,000 to $2,250,000, or 50% to 75% of the total eligible land and building costs, whichever is lower. For machinery and equipment purchases, the loan amount can be between $200,000 to $400,000, or 50% of the total eligible M&E costs, whichever is less.

Working capital and accounts receivable lines of credit are available up to a maximum amount of $100,000 to $350,000. The maximum loan amount for pollution prevention and energy efficiency projects is $100,000 or 75% of the total eligible project costs, whichever is lower.

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PIDA Loan Rates

Land and Building (Real Estate)
For term loans with a regular amortization;

  • 15-year fixed interest rate is 2.50%
  • The 7-year fixed interest rate is 1.50%

For 10-year term loans with a 20-year amortization period;

  • 10-year fixed interest rate is 2.50%
  • 5-year fixed interest rate is 1.50%


  • 2.50% fixed rate for the full term of the loan

Working Capital

  • 2.50% fixed rate for 12 month\’s period

Pollution Prevention and Energy Efficiency Loans

  • 2.00% fixed rate for the full term of the loan

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