Pennsylvania Industrial Development Authority (PIDA) Loan Program
Pennsylvania Department of Community and Economic Development (DCED)
Below-market rate loans
PA below-market loans for job-creating capital projects
Pennsylvania's primary economic development loan program offering below-market interest rates for land, buildings, machinery, and equipment purchases tied to job creation or retention. Delivered through a statewide network of Certified Economic Development Organizations (CEDOs) at the county level. Targets manufacturing, R&D, industrial, agricultural, tourism, and technology sectors. Loans run up to 15 years for real estate and 10 years for equipment.
- Funding type
- Loan
- Level
- State
- Amount range
- $100,000 – $2,000,000
- Realistic amount
- Typical PIDA loan for a small manufacturer is $200,000–$750,000. Larger industrial projects can receive $1M–$2M. The loa…
- Deadline
- Rolling — no annual deadline. Applications are submitted through county CEDOs year-round.
- Status
- active
- States
- PA
- Payment model
- advance
Who qualifies
- Project must be in manufacturing, industrial, agricultural, R&D, tourism, defense conversion, recycling, child day-care, retail, service, export, or technology sectors
- Business must commit to creating or retaining full-time jobs in Pennsylvania
- Business must demonstrate financial viability and ability to service the debt
- Project must involve eligible use: land acquisition, building purchase/construction/renovation, or machinery and equipment
- Business must apply through the county CEDO serving the project location
- Working capital loans are available (1-year renewable terms) but are less common than capital asset loans
Hard requirements
- Must be incorporated
- Minimum project size: $100,000
What it covers
Eligible expenses
- Land acquisition for industrial or commercial use
- Purchase of existing commercial or industrial buildings
- Construction or substantial renovation of commercial/industrial facilities
- Machinery and equipment purchases tied to the project
- Leasehold improvements in some circumstances
- Working capital (1-year term loans, separate from capital asset financing)
Ineligible expenses
- Speculative real estate without committed occupant
- Refinancing of existing debt not associated with new capital investment
- Inventory and supplies
- Vehicles and fleet (generally not eligible)
- Soft costs such as architectural fees beyond a portion of total project cost
- Projects not creating or retaining PA jobs
How to apply
-
1
Find your county CEDO
Locate the Certified Economic Development Organization serving your county at dced.pa.gov/cedo. CEDOs are the entry point — PIDA does not accept direct applications from businesses. Your CEDO evaluates whether PIDA fits your project and guides the application.
~6 hrs
-
2
Meet with CEDO staff for project assessment
Schedule a meeting with your county CEDO to discuss the project scope, job creation plan, and financing structure. CEDOs assess whether PIDA is the right tool and what portion of the project PIDA can cover alongside bank financing.
~6 hrs
-
3
Assemble the application package with CEDO guidance
Prepare 3 years of financial statements, business plan, project cost breakdown, job creation schedule, contractor bids or quotes, and site documentation. CEDOs have checklists; specific requirements vary by project type.
~6 hrs
-
4
CEDO submits application to PIDA board
CEDO reviews, packages, and submits the application to PIDA. The PIDA board meets approximately monthly and issues conditional approval or denial. Conditional approval typically requires finalized construction bids and lender commitments.
~6 hrs
-
5
Closing and disbursement
Upon final approval and satisfying conditions, PIDA executes the loan documents and disburses funds to cover the eligible project costs. Real estate and construction draws may be staged; equipment loans are typically disbursed at closing.
~6 hrs
PIDA's real advantage is rate — it's 1–2% below market on a 15-year term, which can save $50K–$150K on a $500K loan. The CEDO relationship is everything; a CEDO champion significantly speeds approval. Call your county CEDO before contacting PIDA directly.
Deadline & timing
PIDA has no annual deadline — applications are processed continuously through county Certified Economic Development Organizations (CEDOs). Average processing time from CEDO submission to PIDA board approval is 60–90 days. PIDA board meets approximately monthly.
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Last reviewed 2026. GrantCompass is an independent funding-discovery tool and is not affiliated with any government agency. Always confirm details on the official program page.