Tax Exempt Bonds
CAPITAL YOU NEED TO GROW
Managed by PIDC, the Philadelphia Authority for Industrial Development (PAID) is a public authority created by the City of Philadelphia pursuant to the Economic Development Financing Law adopted by the Commonwealth of Pennsylvania in December 1967.
PAID is a trusted issuer of tax-exempt bonds for nonprofit organizations and other eligible borrowers. Tax-exempt bond financing supports the development and expansion of cultural facilities, affordable housing, healthcare and educational institutions, other community facilities, and certain manufacturers.
WHO WE SERVE
PIDC administers the tax-exempt bond financing on behalf of PAID for eligible borrowers primarily located in the City of Philadelphia.
Under the Internal Revenue Service (IRS) guidelines, eligible borrowers of tax-exempt debt include:
- 501(c)3 nonprofit facilities;
- Certain manufacturing facilities. All manufacturing borrowers can incur up to $20 million of capital debt in Philadelphia during any six-year period beginning prior to the date of the bond closing, and cannot have outstanding tax-exempt debt anywhere in the United States in excess of $40 million; and
- Other exempt organizations
Bonds issued through PAID are non-recourse to PAID, PIDC, and the City of Philadelphia. The borrower, or bank guarantor, is responsible for the repayment of the debt to bond purchasers. PAID nor PIDC or the City of Philadelphia determine the business terms of the project. The Bond purchaser and/or guarantor, in consultation with the borrower, underwriter, and/or investment broker, determines all business terms, including collateral, amount, term, and rate.Learn More
WHAT WE FUND
PIDC’S loans can fund:
- Property acquisition
- Environmental remediation
- New construction
- Building renovations
- Tenant improvements
- Energy efficiency improvements
- Soft costs, such as legal, accounting, engineering, architectural fees, permits, appraisals, and other related expenditures
- City and State grant receivables
In addition to our typical lending products, PIDC has creative financing tools, including New Markets Tax Credits and EB-5 financing for project budgets starting at $5 million. As an economic development corporation, PIDC also has access to public resources to support our clients, including Pennsylvania Industrial Development Authority (PIDA) and US Department of Housing and the Urban Development (HUD) Section 108 Loan Guarantee Program.
HOW WE WORK
The first step in the tax-exempt bond financing process is to connect with a member of our conduit finance team.
You or your designated representative, such as an attorney or financial advisor, will provide initial information about the proposed project through our website, and a member of our team will contact you directly to discuss your project
The PIDC team will work with you and the rest of the working group to shepherd the project through the approval processes, which can include a Tax Equity and Fiscal Responsibility Act (TEFRA) advertisement and public hearing, approval of the PAID board of directors, and obtaining the respective governmental approvals.
CONNECT WITH US
PIDC invests flexible, affordable capital in growing companies because we know that local businesses create jobs, build wealth for entrepreneurs, and support neighborhood growth. Let us help your business grow