The SBF Fund consist of three “accounts” (SBF, CED, PPAA) within the SBF Fund
PIDA/SBF ACCOUNT
Eligible Enterprise Types:
Agricultural Processors · Agricultural Producers · Industrial Enterprises · Manufacturing Enterprises · R & D Enterprises · Hospitality Enterprises · Defense Conversion Enterprises · Recycling Enterprises · Computer-Related Service Enterprises · Construction Enterprises · Child Day-Care Enterprises
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.
Term:
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.
*Add. 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.
PIDA/Community Economic Development (CED) Account
Eligible Enterprise Type:
Service Enterprise: A for-profit corporation, limited liability company, partnership, proprietorship, or other business entity having 100 or fewer total full-time employees at the time of application submission that is involved in the business-to-business service, business-to-public service, mercantile, commercial, or point of sale retail sectors and is located in a distressed community as defined by PIDA.
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 $200,000. 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/CED 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. Both working capital term loans and lines of credit require a match.
- A loan funded through PIDA-CED 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.
Term:
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: Service enterprises are only required to retain the number of full-time jobs employed by the business at the time the application is submitted to PIDA.
*Add. Info: Any interested applicant must be invited to apply to the PIDA/CED account through PIDA’s Letter of Intent process (LOI). Please reference Exhibit B within the PIDA Guidelines for the LOI outline.
PIDA/Pollution Prevention Assistance Account (PPAA)
Eligible Enterprise Type:
Any eligible business having 100 or fewer full-time employees worldwide at the time of submission of the application that adopts or installs pollution prevention or energy efficient equipment or processes that reduce or reuse raw materials on-site, reduce the production of waste, or significantly reduce energy consumption and is directly related to the business activity of the eligible business.
Eligible Uses: Machinery & Equipment acquisition, including delivery and installation costs.
Loan Amount: 75% of the total eligible uses as defined above up to $100,000.
Eligible Match: A loan made from the PIDA/PPAA account must be matched by other eligible M&E costs.
Term: Up to 10-yrs. (straight amortization) and the term cannot exceed the useful life of the equipment being financed.
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: Loans made through the PIDA-PPAA account are exempt from job requirements.
*Add. Info: The PIDA/PPAA interest rate is locked at 2% and does not reset quarterly with the other PIDA rates.
For Pollution Prevention loan requests, the business must first complete the “Determination of Eligibility Application” through the Department of Environmental Protection (DEP) and the application must be approved by DEP prior to the CEDO submitting a formal loan application to PIDA. The eligibility application can be downloaded at www.newPA.com/PIDA.