| Eligible Costs |
Loan proceeds can be used to finance land and building, M&E and/or working capital costs. |
| Land & Building |
May include but is not limited to acquisition, construction, renovation, site preparation, engineering, architectural, testing, utilities, site mapping, legal and other related costs. |
| Machinery & Equipment |
May include but is not limited to the refurbishment of existing equipment and the acquisition, delivery and installation of new equipment. |
| Working Capital |
Can be in the form of a term loan or line of credit. Open to the needs of the business but typically finances day to day operating costs, inventory, raw materials, or A/R. |
| Loan Amount |
50% of the total eligible costs as defined above up to $400,000. Uses can be mixed. For example, a loan could finance both eligible real estate and M&E costs. However, please note working capital financing cannot account for more than $100,000 of the overall loan amount. |
| Eligible Match |
Because the PIDA/SBF account is flexible and can be used to finance real estate, machinery & equipment and working capital costs, the match requirements are also flexible. If a project is financing real estate and/or M&E, the loan is required to be matched by either eligible real estate or M&E costs. While working capital term loans require a match, lines of credit do not. *A loan funded through PIDA-SBF may use eligible land and building and M&E costs incurred during the 12-month period prior to the date of submission of the application towards meeting the 50% match requirement. |
| Terms |
| Land & Building |
Up to 15-yrs. (straight amortization) or 10-yr. term with a 20-yr. amortization. |
| Machinery & Equipment |
Up to 10-yrs. (straight amortization) and the term cannot exceed the useful life of the equipment being financed. *If loan proceeds are financing both real estate and equipment costs, a blended term is calculated. |
| Working Capital / Accounts Receivable |
Up to 3-yrs. for term loans / 1-year term for lines of credit but can be renewed up to a maximum of 6 years. |
| Collateral |
Typically secured by the highest lien available on the asset being financed and overall collateral security is dependent upon the credit of the borrower. |
| Jobs |
$35,000 per job retained / $50,000 per job created. *Ag Producers – exempt from job requirements. |
| *Additional Info |
The PIDA/SBF account is utilized for the above enterprise types where the loan amount is $400,000 or less and the eligible operating entity has 100 or fewer full-time employees worldwide. |