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(PEDFA) Pennsylvania Economic Development Financing Authority

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Pennsylvania Economic Development Financing Authority (PEDFA): 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. Eligible companies include those in the manufacturing, non-profit, energy, and transportation industries.

Small and medium sized projects, ranging from $400,000 to $7 million, can be grouped together into a single bond issuance in which high up-front issuance costs are shared, making the financing cost effective regardless of the individual project size. All projects must be guaranteed by a participating bank, usually through a Letter of Credit. Composite projects must follow the timing schedule and financing structure of the PEDFA composite bond pool. The PEDFA pool is a 10-12 week process, from the announced application deadline to the bond closing. In general, there are three bond pools each year, with bond closings currently being held in April, August, and December. (This schedule is subject to change.) Medium and large sized projects, usually ranging from $4 million and up, can be issued on an individual “stand-alone” basis. As job creation is the goal of the program, one job must be created for every $50,000 financed.

Rates on Tax-Exempt Bonds are approximately 85% of prime interest rate. Weekly variable interest rate is tied to the market rate for tax-exempt bonds; the term is up to 30 years. Current rates are available upon request. PEDFA charges a one-time .2% fee to process an application. A processing fee is also charged by the local Industrial Development Corporation (IDC) or Industrial Development Authority (IDA) that submits an application to PEDFA on a company’s behalf.

Contact

R. Larry Bossolt, Vice President
Economic Development Corporation of Erie County
5240 Knowledge Parkway, Erie, PA 16510-4658
Telephone: (814) 899-6022
FAX: (814) 899-0250
E-mail: lbossolt@edcec.org

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