April 22, 2016
For Real estate loans financing eligible land and building costs, borrowers will have the following two interest rate options:
- Fixed interest rate for the full term of the loan (up to a 15-yr. period). This option is calculated using the 10-year treasury yield +150 basis points. Based on the current 10-year treasury yield, the fixed rate option is 3.25% for the life of the loan.
- Fixed interest rate for a seven (7) year period set at the 10-year treasury rate +50 basis points. After seven years, the rate will reset to the 10-year treasury rate +50 basis points. Please note, the reset rate is limited to a 200 basis point increase/decrease and has a floor of 2.25%. The reset rate is then fixed for the duration of the loan.
For this option, the rate is fixed for (7) years at 2.25% and will reset to the 10-year treasury rate +50 basis points after the (7) year period. The reset interest rate is capped at 4.25% (200 point increase) with a 2.25% floor and will be fixed for the remaining term of the loan.
For Equipment loans – 3.25% fixed rate for the full term of the loan.
For Working capital and accounts receivable lines of credit – 3.25% fixed rate for 12 month period.
For Pollution prevention and energy efficiency loans – 2.00% fixed rate for the full term of the loan.
Questions about the program can also be directed to the PIDA Office at 717.787.6245.