Mayor Michael Nutter recently announced $27 million in new loans and grants dedicated to assisting businesses and developers gain access to capital funding for projects in the City. Most of these and other government-funded financial products are administered by the Philadelphia Industrial Development Corporation (PIDC). The new programs include:
The Gap Financing Program, which is funded by the American Reinvestment Act of 2009, provides a solution for development projects with substantial funding gaps for businesses in the city. $4.5 million has been dedicated to this program. Loan requests usually will be between $100,000 to $1 million. Financing cannot exceed 25% of the total project costs. Applicants will be selected through one of several rounds of applications. The deadline for this program is March 1, 2010. The Recovery Zone Facility Bond Program allows private entities to use tax exempt bond proceeds to finance capital projects. This is a one year program with a budget of $13 million. Proceeds from the bond program can be used for acquisition, new construction, renovation and equipment financing. Proceeds cannot be used for residential rental properties.
The Greenworks Loan Fund is a loan source that supports energy efficiency for commercial, industrial or institutional facilities. Specifically, the funds must be used to support retrofit or new construction that significantly reduces energy costs (i.e., energy efficient machinery and equipment or on-site renewable energy systems). $9 million has been allocated for this program. Loans can range from $100,000 to $1 million so long as financing does not exceed 85% of the project cost for retrofits or 33% of project cost for new construction. The deadline for this program is March 10, 2010.
The Greenworks Rebates Program (funded by the Energy Efficiency and Conservation Block Grant) is to encourage improvements on existing buildings and equipment. A total of $500,000 in rebates are available on a competitive basis.
Priority will be given to projects where there is job creation, or in the alternative job retention.
Klehr Harrison is ready to assist you in applying for and securing funds from these new programs. For more information, or if you have questions about these or other government funded programs, please contact:
This Client Alert is prepared for the general information of our clients and other interested persons. This Client Alert is not, and is not intended to be, comprehensive in nature. Due to the general nature of its content, this Client Alert is not and should not be regarded as legal advice.