January 30, 2019
As we kick off the New Year, PIDC is glad to announce a new product — the Commercial Mortgage Loan — supporting small businesses and nonprofits that need financing to purchase buildings that they either currently occupy or intend to relocate to.
The Commercial Mortgage Loan was developed out of a capital need that PIDC identified for small businesses and nonprofits to purchase their existing locations and benefit from investment in their growing neighborhoods and commercial corridors. By allowing businesses to gain ownership of their physical asset, the Commercial Mortgage Loan helps to build wealth for entrepreneurs and promote neighborhood stability.
The Commercial Mortgage Loan is available in the amounts of $50,000 – $500,000 for up to a 15-year term with flexible amortization and a a fixed interest rate starting at 5.5%. Uses include commercial property acquisition and construction and renovation. Borrower must occupy building that is being financed (currently or after purchase) and business must be operating for two years minimum.
PIDC piloted this new product in 2018 with two great neighborhood businesses. Supporting businesses located in low and moderate income communities, particularly those that are minority, women, or immigrant owned is a major priority of PIDC.
Corner Food Market
Corner Food Market Inc. — a minority-owned business — received a loan to purchase the mixed-use commercial property it currently occupies in the Nicetown/Tioga neighborhood. Corner stores play an important role in lower-income Philadelphia communities where full supermarkets are not within walking distance and these stores are often the single option for buying groceries. The mini-grocery store and deli, Corner Food Market, is an important part of the food access solution for this growing neighborhood.
Adventure Alley Children’s Learning Center
Day care, Adventure Alley Children’s Learning Center, LLC — a woman-owned business — received a loan to purchase real estate in a space they have occupied for the past 10 years in the Lawncrest section of Northeast Philadelphia. It is located in a densely populated neighborhood with many young families, bringing much needed early childhood education to this thriving section of the city, especially with its Keystone STAR approved curriculum.