Pennsylvania Industrial Development Authority (PIDA)

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Pennsylvania Industrial Development Authority
(PIDA) Low-interest loans to non-profit IDCs to
assist companies in creating or retaining jobs.

• Types of Loans
• - Single Tenant
• - Multi-Tenant
• - Industrial Park
• Eligible Businesses
• Manufacturing Industrial Computer Centers
  Research and Development Facilities
  Agri-business KIZ Companies
• Ineligible Businesses
• Service Commercial Retail
• Eligible Uses of Funds
• Acquisition Renovation Expansion New
  Construction
• Exceptions
• Projects located in targeted areas (KOZ, EZ,
  Brownfield) are eligible for up to 2.25 million
  and received the lowest interest rate

• Interest Rates
• 4 fixed
• (Based on area unemployment rate or targeted
  area or industry sector)
• Rates will increase and decrease as the Federal
  Reserve adjusts its rates
• Loan Limits
• - 15 year term
• - Participation rate ranges from 30 to 75
  (based on unemployment rate)
• - 2 million maximum loan amount/2.25 million
  maximum in targeted areas
• - Cost per job 35,000
• - No less than 2nd mortgage lien on property to
  be financed
• Applying for a PIDA Loan
• Single Application for Assistance submitted
  through local industrial development corporation
• Questions
• Contact CBF at [phone]

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Machinery and Equipment Loan Fund
(MELF) Low-interest loans to companies to assist
in creating and/or retaining jobs.

• Eligible Businesses
• Manufacturing Industrial Agri-business
  Mining Operations Production Agriculture
  Hospitals Information Technology
  Biotechnology
• Ineligible Businesses
• Service Commercial Retail
• Eligible Uses of Funds
• Acquisition and installation of new or used
  machinery and equipment which is directly related
  to the business process
• Upgrading of existing machinery and equipment
  which is directly related to the business process
• NOT Eligible Repair costs for existing
  machinery and equipment, and cost of company
  labor for installation
• Interest Rates
• 4

• Loan Limits
• 5,000,000 or 50 of total project cost
  (whichever is less)
• Term
• Up to 10 years
• Job Requirements
• 25,000 loaned 1 full-time job retained/created
  at site within three years from closing date.
  Does not apply to loans to production agriculture
  enterprises
• Applying for a MELF Loan
• Applicant will complete the Single Application
  for Assistance and forward to DCED, Loans
  Division
• Questions
• Contact CBF at [phone]

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Small Business First Program (SBF) Provides
low-interest loan financing to small businesses.
As amended by SB 778

• Eligible Businesses
• Agri-business and Production Agriculture
  Industrial Manufacturing Hospitality and
  Defense Conversion Construction Recycling
  Computer Services For profit or Nonprofit Day
  Care Centers
• Eligible Use of Funds
• Land Buildings Machinery Equipment
  Working Capital
• Ineligible Use of Funds
• Refinancing existing debt Costs incurred
  prior to approval of SBF loan Brokers
  Consultant fees
• Terms
• Real Estate 15 years M E 10 years
• Working Capital 3 years
• Interest Rates
• 4

• Collateral
• Loans must be secured at the highest lien
  position available on one or more assets
• SBF may require personal guarantees of
  principals
• Limitations
• Business must have 100 employees or less
• Maximum Loan amount, 200,000 or 50 of project
  cost, whichever is less (working capital loans,
  100,000 or 50 of project cost, whichever is
  less)
• Project must create/retain at least one job for
  every 25,000 borrowed (does not apply to
  farmers)
• Applying for a SBF Loan
• Single Application for Assistance submitted
  through area loan organization
• Questions
• Contact CBF at [phone]

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Community Economic Development Loan Program
(CED) Low-interest loans to small business
enterprises in distressed areas that will enhance
the economic well-being of a community or
neighborhood.

• Eligible Businesses
• For-profit business with 100 or less full-time
  employees
• Mercantile - Commercial Retail
• Business must demonstrate a positive, direct
  community impact and be located in a distressed
  community
• Eligible Use of Funds
• Land and building, machinery and equipment and
  working capital
• Ineligible Use of Funds
• Refinancing
• Related party transactions

• Interest Rate
• 2 fixed
• Loan Limits
• Maximum loan amount is 100,000 or 50 of
  project cost (whichever is less)
• Job Requirements
• Retain jobs in existence as of the date of the
  loan application
• Applying for a CED Loan
• Submit LOI to DCEDIf accepted, the applicant
  will be invited to submit a Single Application
  for Assistance and will be referred to their
  local ALO or CDFI for assistance

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First Industries Program - Agriculture Tourism

• Eligible Tourism Activities
• Tourism people traveling for pleasure
• Destination tourism sites, i.e. historical,
  cultural, sporting, amusement, outdoor
  recreational
• Hospitality establishments serving a destination
  site
• Tourism activities that generate overnight stays
• Activities that optimize or enhance state parks,
  forests, or game lands

• Eligible Agriculture Activities
• Production Agriculture Farms
• Food Processing
• Wholesalers of Farm Commodities
• Urban Rural Supermarkets
• Farmers Markets
• Energy-related activities impacting production
  agriculture or agribusiness
• Activities which implement best practices related
  to agriculture waste products

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First Industries Program - Agriculture Tourism
Planning Grants Provides grants to businesses for
assistance with their capitalization or working
capital needs.

• Eligible Applicants
• For profit or nonprofit entities as determined by
  the Commonwealth Financing Authority
• Eligible Uses of Funds
• Predevelopment activities and feasibility studies
  associated with an agriculture project
• Fund Limits
• Maximum grant amount, 250,000
• Total amount of planning grant funds that may be
  awarded for agriculture or tourism projects, 10
  million

• Requirements
• Project for Tourism Planning Grant must meet at
  least one of 4 specified criteria and at least
  one of 5 for the Agriculture Planning Grant
• Any reports prepared will be provided to the
  Commonwealth Financing Authority and made
  available to the public
• Applying for planning grants
• Submit a single application to the Commonwealth
  Financing Authority
• Questions
• Contact the Center for Private Financing (717)
  783-1109

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First Industries Program - Agriculture Tourism
Under Small Business First Machinery and
Equipment Loan Fund

• Eligible Applicants
• For-profit companies that meet the general
  eligibility requirements of SBF and MELF and that
  meet the definition of an agriculture or tourism
  enterprise
• Eligible Uses of Funds
• SBF land building, machinery equipment,
  working capital
• MELF machinery equipment
• Fund Limits
• SBF - 200,000 (100,000 working capital)
• MELF - 5 million when new guidelines published

• Requirements
• Project must meet the requirements of the SBF and
  MELF programs
• Applying for Loans
• SBF Applicant applies through Area Loan
  Organization
• MELF Applicant applies to DCED through
  submission of a Single Application for
  Assistance
• Questions
• Contact the Center for Business Financing (717)
  787-7120

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Export Financing Program (EFP) Designed to
increase the level of exports and number of
exporting companies in PA.

• Eligible Applicants
• Businesses that need financing for specific or
  multiple export transactions that have 250
  employees or less
• Must be in operation but not necessarily
  exporting for a least 12 months
• Eligible Uses of Funds
• Working Capital Acquire Inventory pay for
  direct or indirect costs used for the manufacture
  or purchase of goods, or for the provisions of
  services Support Standby Letters of Credit used
  as bid bonds, performance bonds or payment
  guarantees
• Accounts Receivable Finance accounts
  receivable up to 180 days from the date of
  arrival at the port of importation

• Loan Amount/Rate
• Maximum amount 350,000 Rate 3.75
• Terms
• Working Capital 12 months
• Accounts Receivable Repayment is due when the
  receivable is paid or 180 days after
  disbursement, whichever is sooner. Lines of
  credit for multiple transactions are available
  for 12 month period
• Condition All loans will have either an Export
  Import Bank guarantee or credit insurance
• Applying for EFP
• Contact either the SBF office [phone]
• -or-
• Team PA Export Network Region Provider
• [phone]

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Pollution Prevention Assistance Program (PPAP) To
assist PA small businesses enterprises to
implement pollution prevention and
energy-efficient projects.

• Eligible Businesses
• A for-profit corporation, LLC, partnership,
  proprietorship or other business entity that has
  no more than 100 total employees and operates
  from a stationary source
• Eligible Uses of Funds
• Adopt or install pollution prevention or energy
  efficient equipment or processes directly related
  to the business activity of the small business
  enterprise
• Ineligible Use of Funds
• Refinancing existing debt less than arms
  length transactions Equipment that focuses on
  recycling or pollution control rather than
  prevention, i.e. scrubbers, dust collectors
  Projects that have commenced prior to DCED
  approval

• Rate and Terms
• Annual fixed rate of 2. Term of loan can be
  up to 10 years or the life of the asset
  (whichever is less)
• Loan Amount
• 100,000 or 75 of TPC (whichever is less)
• Matching lending sources must have equivalent of
  longer terms
• Applying for a PPAP Loan
• Complete Single Application for Assistance
  (DCED)
• Complete Determination of Eligibility
  Application (DEP)
• Questions
• Contact SBF at [phone]

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Opportunity Grant Program (OGP)

• Eligible Applicants
• Private Companies and Municipalities IDAs
  Municipal Authorities RDAs Private Developers
  on behalf of Private Companies
• Eligible Uses of Funds
  Construction/rehabilitation of infrastructure
  Site preparation Acquisition of land and
  buildings Upgrade of machinery and equipment
  Working capital Job training Environmental
  assessments Remediation of hazardous materials
• Fund Limits
• 41 Match
• Funds based on economic impact to an area/region
  Job retention/creation Private Investment

• Job Requirements
• Create/preserve a minimum of 100 full-time jobs
• -OR- Increase PA employment at lest 20 -OR-
  Provide substantial number of new employment
  opportunities in high-growth industry
• Other Requirements
• Private companies must locate, expand or
  maintain operation in PA for 5 years Base pay
  of at least 150 of minimum wage LOI must
  include written commitment from private company
• Applying for OGP funds
• Submit LOI as outlined in program guidelines
• Questions
• Contact CBF at [phone]

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Customized Job Training Program (CJT)

• Eligible Applicants
• LEAs IRCs Greenhouses Local workforce
  investment boards Private Companies IDCs
  Labor unions
• Eligible Costs
• Salaries and benefits for instruction and
  curriculum development
• Instructional supplies, consumable materials,
  and software
• Tool and equipment rental directly applicable to
  the training tuition reimbursement if trainee
  completes the course
• Ineligible Costs
• Capital improvements wages, salaries, or
  benefits of trainees and employees not involved
  in conducting the training travel expenses of
  trainees unless waived by DCED

• Program Requirements
• CJT funds for up to 75 of eligible training
  costs
• Trainees must earn 150 of federal min. wage.
• Training for PA residents only
• Company may not receive more than 2 consecutive
  years of grant funding, and no more than 3 years
  out of 5
• 25 of funds are set aside for small business
• No more than 10 of funds to one company,
  greenhouse or labor organization
• Applying for a CJT Grant
• Submit Single Application for Assistance
• Questions
• Contact CBF at [phone]

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Job Creation Tax Credits (JCTC) Provides tax
credits to businesses to stimulate job creation

• Fund Limits
• 1,000 tax credit for each job created.
• Job Requirements
• Job creation is measured from a start date which
  is the first day of the calendar quarter in which
  an application is submitted.
• Must create at least 25 full-time jobs, or have
  a 20 increase in employment at the project site
  within 3 years of start date. New jobs must pay
  150 of minimum wage, and business must maintain
  operations at project site for 5 years.
• Applying for JCTC Credits
• Submit Single Application for Assistance to
  DCED.
• Questions
• Contact CBF at [phone]

• Eligible Applicants
• Any Business
• Participant Criteria
• Business must create a specific number of jobs
  within 3 years.
• Must demonstrate leadership in application,
  development or deployment of leading technologies
  and financial stability
• Eligible Uses of Funds
• Tax Credits may be applied to business
  corporate net income tax, personal income tax,
  capital stock and franchise tax, gross premiums
  tax, gross receipts tax, bank trust business
  tax, mutual thrift institution tax, or title
  insurance business shares tax.

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Renewable Energy ProgramGeothermal and Wind
Projects
Provides financial assistance in the form of
grant and loan funds that will be used by
eligible applicants to promote the use of
alternative energy in the Commonwealth.
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Renewable Energy Program

• Eligible Applicants
• The following applicants are eligible for
  grants/loans
• A Business A corporation, partnership, sole
  proprietorship, limited liability company,
  business trust or other commercial entity
  approved by the Commonwealth Financing Authority.
  The term shall include not-for-profit entities.
• An Economic Development Organization A
  non-profit corporation or association whose
  purpose is the enhancement of economic conditions
  in their community.
• A Political Subdivision Includes
  municipalities, counties, and school districts.
• Eligible Projects
• Geothermal Technologies, including closed loop
  geothermal heat pump systems that use the ground,
  ground water and underground mine water as an
  energy source.
• Wind Energy, including facilities to produce or
  distribute wind generated energy as well as
  manufacturing facilities for wind turbines and
  other energy components.

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Renewable Energy Program

• Eligible Use of Funds
• Funds may be used by the applicant to pay for any
  of the following project costs
• Acquisition of land and buildings, rights-of-way,
  and easements necessary to construct an eligible
  project.
• The clearing and preparation of the land
  necessary to construct an eligible project.
• Construction or renovation of a building that
  will be used to manufacture components of wind or
  geothermal energy systems.
• The purchase and installation of equipment used
  for the manufacturing of geothermal or wind
  energy systems.
• The purchase, installation, and construction of
  energy facilities that generate or distribute
  geothermal or wind energy.
• Preparation of plans, specifications, studies,
  and surveys, necessary or incidental to
  determining the feasibility or practicability.
• Permit fees.
• Administrative costs of the applicant to
  administer a Program grant. Administrative costs
  include advertising, legal and audit costs, as
  well as documented staff expenses. Administrative
  costs shall not exceed 3 of the Program grant or
  loan.

Ineligible costs include but are not limited to
fees for securing other financing, interest on
borrowed funds, refinancing of existing debt, and
costs incurred prior to the approval of CFA
financing.
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Renewable Energy Program

• Loans
• Loan Amount
• The maximum amount of any loan for a component
  manufacturer of renewable energy generation
  equipment shall not exceed 35,000 for every new
  job projected to be created by the business
  within three years after approval of the loan.
• The maximum loan amount for a geothermal system
  or a wind energy generation or distribution
  project shall not exceed 5 million.
• Repayment Term Loans will be repaid over a
  period not to exceed 10 years for equipment and
  15 years for real estate.
• Interest Rate The interest rate for the loan
  will be fixed at the time of approval of the
  loan. Interest rates are subject to change based
  on market conditions. The current interest rate
  is posted on the www.newpa.com website.
• Security All loans are to be secured by a lien
  on the asset financed. The Authority may require
  additional security as necessary, including but
  not limited to, a pledge of additional assets or
  securities or dedicated revenues.

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Renewable Energy Program

• Grants
• The maximum amount of any grant for a component
  manufacturer of renewable energy generation
  equipment shall not exceed 5,000 for every job
  projected to be created by the business within
  three years after approval of the grant. If the
  component manufacturer fails to create the
  projected number of jobs, the Authority may
  require the full amount of the grant to be
  repaid.
• The maximum grant amount for a geothermal system
  or a wind energy generation or distribution
  project shall not exceed 1 million.
• The maximum amount for any grant that will be
  used solely for planning or feasibility studies
  shall not exceed 50 of the total cost of the
  planning project or 175,000, whichever is less.
  Grants may be used to pay for any eligible
  project costs as defined in Section II of these
  guidelines.

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Renewable Energy Program

• Guarantee
• The Authority may award grants to applicants that
  would serve as a guarantee for the financing in
  the project. The Guarantee is subject to the
  following conditions
• The grant will be in the form of a standby letter
  of credit and issued directly to the
  company/developer.
• The grant funds may only be drawn upon in the
  event the company defaults on its financing and
  there is a deficiency in collateral for the
  lending institution to collect upon. The grant
  will pay up to 75 of the deficiency.
• The term of the grant will not be more than 5
  years.
• The amount of the grant shall not exceed 5
  million.

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Renewable Energy Program

• Application Evaluation
• All applications for financial assistance will be
  reviewed by the Department of Community and
  Economic Development and the Department of
  Environmental Protection under the direction of
  the CFA to determine eligibility and
  competitiveness of the proposed project. Projects
  will be evaluated using the appropriate criteria
  from the following comprehensive list of
  evaluation criteria for the various types of
  eligible projects
• The level of non-CFA matching investment in the
  project.
• The technical and financial feasibility of the
  project.
• Energy savings generated or peak load reduced by
  the project.
• The amount of alternative energy produced by the
  project.
• The number and quality of the jobs to be created
  or preserved by the project.
• The financial need of the project.
• Project readiness.
• The level to which the project exhibits
  principals of sound land and water use.
• Environmental benefits arising from the project
  including the creation of allowances that can be
  used to facilitate additional economic
  development in the region.

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Renewable Energy Program

• Application Procedures
• Submit an electronic Single Application for
  Assistance
• Questions
• Contact CBF at [phone]

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Solar Energy Program
Provides financial assistance in the form of
grant and loan funds that will be used by
eligible applicants to promote the generation and
use of solar energy and the manufacture or
assembly of solar equipment in the Commonwealth.
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Solar Energy Program

• Eligible Applicants
• The following applicants are eligible for
  grants/loans
• A Business a corporation, partnership, sole
  proprietorship, limited liability company,
  business trust, or other commercial entity
  approved by the Commonwealth Financing Authority.
  The term shall include venture capital firms,
  solar energy and solar thermal system installers,
  and other business entities capable of raising a
  significant amount of capital. The term shall
  also include not-for-profit entities.
• An Economic Development Organization a
  nonprofit corporation or association whose
  purpose is the enhancement of economic conditions
  in their community.
• A Political Subdivision A municipality, county,
  or school district.
• Eligible Projects
• Solar projects, including facilities to generate,
  distribute, or store solar energy, as well as
  manufacturing or assembly facilities for solar
  panels or other solar equipment. Solar
  photovoltaic (electric) and solar thermal (hot
  water) technologies are eligible. Projects must
  have a useful life of at least four years.
• The development or construction of facilities
  used for the research and
  development of technology related to solar
  energy.

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Solar Energy Program

• Eligible Use of Funds
• Funds may be used by the applicant to pay for any
  of the following project costs
• Acquisition of land and buildings, rights-of-way,
  and easements necessary to construct an eligible
  project.
• The clearing and preparation of the land
  necessary to construct an eligible project.
• Construction or renovation of a building that
  will be used to manufacture equipment related to
  solar energy systems.
• The purchase and installation of equipment used
  for the manufacturing of equipment related to
  solar energy systems or solar thermal systems.
• The purchase (including the bulk purchase of
  equipment), installation, and construction of
  facilities that generate, distribute, or store
  solar energy or that produce hot water using
  solar energy.
• For eligible public and non-profit applicants,
  the preparation of plans, specifications,
  studies, surveys, necessary or incidental to
  determining the feasibility or practicability.
• Permit fees.
• Administrative costs of the applicant to
  administer a Program grant or loan.
  Administrative costs include advertising, legal
  and audit costs, as well as documented staff
  expenses. Administrative costs shall not exceed
  3 of the Program grant or loan.

Ineligible costs include but are not limited to
fees for securing other financing, interest on
borrowed funds, refinancing of existing
debt, and costs incurred prior to the approval
of CFA financing.
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Solar Energy Program

• Loans
• Loan Amount
• The maximum amount of any loan for a manufacturer
  of solar equipment shall not exceed 35,000 for
  every new job projected to be created by the
  business within three years after approval of the
  loan. If the manufacturer fails to create the
  projected number of jobs within three years, the
  Authority may require the interest rate to be
  increased by 3 for the remaining term of the
  loan.
• The maximum loan amount for a solar energy
  generation or distribution project shall not
  exceed 5 million or 2.25 per watt, whichever is
  less. In calculating the 2.25 per watt cost,
  CFA will not include the cost of any energy
  storage equipment. The CFA will consider loan
  requests over 5 million for projects that will
  significantly impact the Authoritys goal to
  increase the amount of solar energy generated in
  the Commonwealth.
• The maximum loan amount for a solar research and
  development facility or a solar thermal project
  shall not exceed 5 million.
• Repayment Term Loans will be repaid over a
  period not to exceed 10 years for equipment and
  15 years for real estate.
• Interest Rate The interest rate for the loan
  will be fixed at the time of approval of the
  loan. Interest rates are subject to change based
  on market conditions. The current interest rate
  is posted on the www.newpa.com website.
• Security All loans are to be secured by a lien
  on the asset financed. The Authority
  may require additional security as
  necessary, including but not limited to, a pledge
  of additional assets or
  securities or dedicated revenues.

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Solar Energy Program

• Grants
• The maximum amount of any grant for a
  manufacturer of solar equipment shall not exceed
  5,000 for every job projected to be created by
  the business within three years after approval of
  the grant. If the manufacturer fails to create
  the projected number of jobs, the Authority may
  require the full amount of the grant to be
  repaid.
• The maximum grant amount for a solar energy
  generation or distribution project shall not
  exceed 1 million or 2.25 per watt, whichever is
  less. In calculating the 2.25 per watt cost,
  CFA will not include the cost of any energy
  storage equipment. The CFA will consider grant
  requests over 1 million for projects that will
  significantly impact the Authoritys goal to
  increase the amount of solar energy generated in
  the Commonwealth. It is the preference of the
  Authority to assist solar energy generation
  projects with low interest loans rather than
  grants whenever possible.
• The maximum grant amount for a solar research and
  development facility or a solar thermal project
  shall not exceed 1 million.
• The maximum amount for any grant that will be
  used solely for planning or feasibility studies
  shall not exceed 50 of the total cost of the
  planning project or 175,000, whichever is less.
  Grants may be used to pay for any eligible
  project costs as defined in Section II of these
  guidelines.
• The CFA will consider grant requests for
  generation projects in instances where there is
  not a long-term contract of at least 10 years in
  place for Solar Renewable Energy Credits. For
  projects that enter into a long-term SREC
  contract subsequent to CFA approval of a grant,
  the grant approval will be rescinded and grant
  funds returned to the CFA.

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Solar Energy Program

• Guarantee
• The Authority may award grants to applicants that
  would serve as a guarantee for the financing in
  the project. The Guarantee is subject to the
  following conditions
• The grant will be in the form of a standby letter
  of credit and issued directly to the
  company/developer. Projects applying for a loan
  guarantee from the Authority will be required to
  invest a minimum of 10 in equity as part of the
  project financing.
• The grant funds may only be drawn upon in the
  event the company defaults on its financing and
  there is a deficiency in collateral for the
  lending institution to collect upon. The grant
  will pay up to 75 of the deficiency.
• The term of the grant will not be more than 5
  years.
• The amount of the grant shall not exceed 30
  million.

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Solar Energy Program

• Application Evaluation
• All applications for financial assistance will be
  reviewed by the Department of Community and
  Economic Development and the Department of
  Environmental Protection under the direction of
  the CFA to determine eligibility and
  competitiveness of the proposed project.
  Projects will be evaluated using the following
  criteria
• The level of non-CFA matching investment in the
  project.
• The technical and financial feasibility of the
  project.
• Energy savings generated or peak load reduced by
  the project.
• The amount of solar energy produced by the
  project.
• The number and quality of the jobs to be created
  or preserved in Pennsylvania by the project
  including construction jobs.
• The financial need of the project.
• The capital efficiency of the project.
• Project readiness.
• The level to which the project exhibits
  principles of sound land and water use.
• Environmental benefits arising from the project
  including the creation of allowances that can be
  used to facilitate additional economic
  development in the region.
• The nation and state of origin of equipment used
  in the solar project.

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Solar Energy Program

• Application Procedures
• Submit an electronic Single Application for
  Assistance
• Questions
• Contact CBF at [phone]

30
High Performance Building
Provides financial assistance in the form of
grant or loan funds that will be used by eligible
applicants to underwrite the cost premiums
associated with the design and construction or
major renovation of high performance buildings in
the Commonwealth.
31
High Performance Building

• Eligible Applicants
• The following applicants are eligible for
  grants/loans
• A Small Business a for-profit corporation,
  limited liability company, partnership,
  proprietorship or other legal business entity
  located within the Commonwealth of Pennsylvania
  and having 100 or fewer full-time employees
  worldwide at the time of submission of the
  application.
• An Individual any person engaged in the
  construction or renovation of a dwelling that he
  or she currently occupies or will occupy as a
  primary residence.

Eligible Projects High performance building
projects that meet or exceed the standards
identified in these guidelines will be eligible
for consideration under this program. Projects
are limited to the construction or renovation of
a building for the use of a small business and/or
for the primary residence of an individual. The
high performance standards adopted herein are
intended to optimize the energy performance of
buildings increase the use of and demand for
environmentally preferable building materials,
furnishes and finishes reduce pollutant and
waste generation select appropriate
sites improve environmental quality promote
good building operations practices and
conserve natural resources in the Commonwealth.
32
High Performance Building

• Eligible Use of Funds
• Funds may be used by the applicant to pay for any
  of the following project costs associated with a
  high-performance building
• The acquisition of land and buildings,
  rights-of-way, and easements necessary to
  construct an eligible project.
• The clearing and preparation of the land
  necessary to construct an eligible project.
• The planning, designing, or modeling work
  necessary to construct or renovate a high
  performance building.
• Registration and certification of the project
  with.
• Construction or renovation of a high performance
  building.
• Commissioning and enhanced verification of
  building performance.

Ineligible costs include but are not limited to
fees for securing other financing, interest on
borrowed funds, refinancing of existing debt, and
costs incurred prior to the approval of CFA
financing.
33
High Performance Building

• Loans
• Loan Amount
• The maximum loan amount for high performance
  building projects for small businesses shall not
  exceed 2 million.
• The maximum loan amount for individual
  residential projects shall not exceed 100,000.
• Repayment Term Loans may be amortized over a
  period not to exceed 25 years and will be repaid
  over a period not to exceed 10 years.
• Interest Rate The interest rate for the loan
  will be fixed at the time of approval of the
  loan. Interest rates are subject to change based
  on market conditions. The current interest rate
  is posted on the www.newpa.com website.
• Security All loans are to be secured by a lien
  on the asset financed. The Authority
  may require additional security as
  necessary, including but not limited to, a pledge
  of additional assets or
  securities or dedicated revenues.

Grants The maximum grant amount shall not exceed
500,000 or 10 of the total eligible building
construction/renovation costs, whichever is less.
An eligible applicant may apply for a grant or a
loan, but not both for the same building project.
34
High Performance Building

• Guarantees
• The Authority may award grants to applicants that
  would serve as a guarantee for the financing in
  the project. The Guarantee is subject to the
  following conditions
• The grant will be in the form of a standby letter
  of credit and issued directly to the business or
  individual.
• The grant funds may only be drawn upon in the
  event the grant recipient defaults on its
  financing and there is a deficiency in collateral
  for the lending institution to collect upon.
• The term of the grant will not be for more than 5
  years.
• The amount of the grant shall not exceed 2
  million for a business and 100,000 for an
  individual.

35
High Performance Building

• Application Evaluation
• All applications for financial assistance will be
  reviewed by the Department of Community and
  Economic Development and the Department of
  Environmental Protection under the direction of
  the CFA to determine eligibility and
  competitiveness of the proposed project.
  Projects will be evaluated using the following
  criteria
• The level of non-CFA matching investment in the
  project.
• The number and quality of the jobs to be created
  or preserved by the project (small business
  only).
• The technical and financial feasibility of the
  project.
• Project readiness.
• The level to which the project exhibits
  principals of sound land and water use.
• Environmental benefits arising from the project.
• The nation and state of origin of building
  materials used to qualify the building as a high
  performance building.

36
High Performance Building

• Application Procedures
• Submit an electronic Single Application for
  Assistance
• Questions
• Contact CBF SBF at [phone]

37
Alternative and Clean Energy
Provides financial assistance in the form of
grant and loan funds that will be used by
eligible applicants for the utilization,
development and construction of alternative and
clean energy projects in the Commonwealth.
38
Alternative and Clean Energy

• Eligible Applicants
• The following applicants are eligible for
  grants/loans
• A Business a corporation, partnership, sole
  proprietorship, limited liability company,
  business trust, or other commercial entity
  approved by the Commonwealth Financing Authority.
  The term shall also include not-for-profit
  entities.
• An Economic Development Organization a
  nonprofit corporation or association whose
  purpose is the enhancement of economic conditions
  in their community.
• A Political Subdivision A municipality, county,
  or school district.

39
Alternative and Clean Energy

• Eligible Project Costs
• Funds may be used for any of the following Clean
  Energy Project costs
• Installation of equipment for use by an eligible
  applicant to facilitate or improve energy
  conservation or energy efficiency (including but
  not limited to heating, lighting, and cooling
  equipment). Energy Star rated equipment is
  required if the type or class of equipment being
  installed is rated under the Energy Star Program
  (refer to www.energystar.gov). The Authority may
  participate in establishing pools of funding by
  leveraging investments from private sector
  financial institutions to help accomplish the
  CFAs energy conservation goals.
• Installation of an alternative energy system
  which produces energy from sources defined under
  the Portfolio Standards Act of 2004 including but
  not limited to waste coal, biomass, wind energy,
  geothermal technologies, clean coal technologies,
  waste energy technologies, large-scale or
  low-impact hydro, biologically derived methane
  gas, fuel cells, coal mine methane, or
  by-products of the pulping and wood manufacturing
  process in a new or existing building.
• Replacement or enhancement of an existing energy
  system that utilizes nonrenewable energy with an
  energy system that utilizes alternative energy.
• Modification of the contract terms of an energy
  service project by a political subdivision
  pursuant to a new energy savings contract (ESCO)
  with a qualified provider under the Guaranteed
  Energy Savings Act (GESA) of 1996. The PA
  Department of General Services manages the GESA
  program for the Commonwealth, and maintains a
  list of qualified providers on their website
  (www.dgs.state.pa.us).

40
Alternative and Clean Energy

• Eligible Project Costs Continued
• Preparation of plans, specifications, studies,
  surveys, and energy audits necessary or
  incidental to facilitating or developing an
  eligible project.
• Administrative costs of the applicant to
  administer a Program grant. Administrative costs
  include advertising, legal and audit costs, as
  well as documented staff expenses.
  Administrative costs shall not exceed 3 of the
  Program grant or loan.

• Funds may be used for the construction or
  development of an Alternative Energy Production
  Project including
• A facility that produces or distributes energy
  from sources defined in the Portfolio Standards
  Act of 2004 including but not limited to waste
  coal, biomass, wind energy, geothermal
  technologies, clean coal technologies, municipal
  solid waste energy technologies, large-scale or
  low-impact hydro, biologically derived methane
  gas, fuel cells, coal mine methane, or
  by-products of the pulping and wood manufacturing
  process.
• A facility that manufactures or produces
  alternative fuels. The term alternative fuels
  shall include ethanol, biodiesel, or any other
  alternative fuel approved by the authority.

41
Alternative and Clean Energy

• Eligible Project Costs Continued
• A facility that manufactures or produces
  products, including component parts that provide
  alternative energy or alternative fuels.
• The purchase and installation of equipment used
  for the manufacturing of component parts of
  alternative energy or alternative fuel production
  systems.
• A facility that manufactures or produces
  products, including component parts that improve
  energy efficiency or conserve energy.
• A facility used for the research and development
  of technology to provide alternative energy
  sources or alternative fuels.
• A project for the development or enhancement of
  rail transportation systems that deliver
  alternative fuels or high efficiency locomotives.
• Preparation of plans, specifications, studies,
  and surveys, necessary or incidental to
  facilitating or developing an eligible project.
• Administrative costs of the applicant to
  administer a Program grant. Administrative costs
  include advertising, legal and audit costs, as
  well as documented staff expenses.
  Administrative costs shall not exceed 3 of the
  Program grant or loan.

42
Alternative and Clean Energy

• Loans
• Loan Amount
• The maximum amount of any loan for any
  alternative energy production or clean energy
  project shall not exceed 5 million or 50 of the
  total project cost, whichever is less. The CFA
  will consider loan requests over 5 million for
  projects that will significantly impact the
  Authoritys goals to leverage private sector
  investments and to encourage alternative energy
  production and energy conservation in the
  Commonwealth.
• The maximum amount of any loan for a manufacturer
  of alternative and/or clean energy generation
  equipment or components shall not exceed 35,000
  for every new job projected to be created by the
  business within three years after approval of the
  loan. If the manufacturer fails to create the
  projected number of jobs within three years, the
  Authority may require the interest to be
  increased by 3 for the remaining term of the
  loan.
• The maximum loan amount for a High Performance
  Building shall not exceed 2 million.
• All eligible applicants may apply for loans for
  eligible projects except that political
  subdivisions may not apply for Alternative Energy
  Production Projects as defined in Section II B.
• Repayment Term Loans may be amortized over a
  period not to exceed 25 years or the useful life
  of the asset, whichever is less and will be
  repaid over a period not to exceed 10 year.

43
Alternative and Clean Energy

• Loans Continued
• Interest Rate The interest rate for the loan
  will be fixed at the time of approval of the
  loan. Interest rates are subject to change based
  on market conditions. The current interest rate
  is posted on the www.newpa.com website.
• Security All loans are to be secured by a lien
  on the asset financed. The Authority may require
  additional security as necessary, including but
  not limited to, a pledge of additional assets or
  securities or dedicated revenues .

• Grants
• The maximum amount of any grant for any
  alternative energy production or clean energy
  project shall not exceed 2 million or 50 of the
  total project cost, whichever is less. The CFA
  will consider grant requests over 2 million for
  projects that will significantly impact the
  Authoritys goal to leverage private investment
  and encourage alternative energy production and
  energy conservation in the Commonwealth.
• The maximum amount of any grant for a
  manufacturer of alternative and/or clean energy
  generation equipment or components shall not
  exceed 10,000 for every job projected to be
  created by the business within three years after
  approval of the grant. If the manufacturer fails
  to create the projected number of jobs, the
  Authority may require the full amount of the
  grant to be repaid.

44
Alternative and Clean Energy

• Grants Continued
• The maximum grant amount for an Energy Savings
  Contract (ESCO) or a High Performance Building
  shall not exceed 500,000.
• Political subdivisions are eligible to apply for
  grants only for Clean Energy Projects as defined
  in Section II B. Businesses and non-profit
  economic development organizations are eligible
  to apply for grants only for Site Preparation
  Projects and Alternative Energy Production
  Projects.

• Guarantees
• The Authority may award grants to applicants that
  would serve as a guarantee for the financing in
  the project. The Guarantee is subject to the
  following conditions
• The grant will be in the form of a standby letter
  of credit and issued directly to the
  company/developer.
• The grant funds may only be drawn upon in the
  event the company defaults on its financing and
  there is a deficiency in collateral for the
  lending institution to collect upon. The grant
  will pay up to 75 of the deficiency.
• The term of the grant will not be more than 5
  years.
• The amount of the grant shall not exceed 5
  million .

45
Alternative and Clean Energy

• Application Evaluation
• All applications for financial assistance will be
  reviewed by the Department of Community and
  Economic Development and the Department of
  Environmental Protection under the direction of
  the CFA to determine eligibility and
  competitiveness of the proposed project.
  Projects will be evaluated using the appropriate
  criteria from the following list of evaluation
  criteria for the various types of eligible
  projects
• The level of non-CFA matching investment in the
  project.
• The technical and financial feasibility of the
  project.
• Energy savings generated or peak load reduced by
  the project.
• Conventional energy displaced by the deployment
  of the alternative energy production project.
• The amount of alternative energy or alternative
  fuels produced by the project.
• The number and quality of the jobs to be created
  or preserved in Pennsylvania by the project
  including construction jobs.
• The financial need of the project.
• The capital efficiency of the project.
• Project readiness.
• The level to which the project exhibits
  principles of sound land and water use.
• Environmental benefits arising from the project
  including the creation of allowances that can be
  used to facilitate additional economic
  development in the region.
• The nation and state of origin of
  equipment/components used in the project.

46
Alternative and Clean Energy

• Application Procedures
• Submit an electronic Single Application for
  Assistance
• Questions
• Contact CBF at [phone]