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Pennsylvania Industrial Development Authority (PIDA) Low-interest loans to non-profit IDCs to assist companies in creati

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

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Pennsylvania Industrial Development Authority (PIDA) Low-interest loans to non-profit IDCs to assist companies in creati

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  1. 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 (717) 787-6245

  2. 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 (717) 787-6245

  3. 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 (717) 783-5046

  4. 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

  5. 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

  6. 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

  7. 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

  8. 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 Export Financing Program (EFP) Designed to increase the level of exports and number of exporting companies in PA. • 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 (717) 783-5046 -or- Team PA Export Network Region Provider (888) 723-9678

  9. 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 Pollution Prevention Assistance Program (PPAP) To assist PA small businesses enterprises to implement pollution prevention and energy-efficient projects. • 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 (717) 783-4046

  10. Eligible Applicants Private Companies and Municipalities – IDAs – Municipal Authorities – RDAs – Private Developers on behalf of Private Companies Eligible Uses of FundsConstruction/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 4:1 Match Funds based on economic impact to an area/region – Job retention/creation – Private Investment Opportunity Grant Program (OGP) • 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 (717) 787-7120

  11. 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 Customized Job Training Program (CJT) • 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 (717) 787-7120

  12. 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 (717) 787-7120 • 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.

  13. 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.

  14. 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.

  15. 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.

  16. 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.

  17. 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.

  18. 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.

  19. 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.

  20. Renewable Energy Program Application Procedures Submit an electronic Single Application for Assistance Questions Contact CBF at (717) 787-7120

  21. 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.

  22. 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.

  23. 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.

  24. 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 Authority’s 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.

  25. 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 Authority’s 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.

  26. 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.

  27. 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.

  28. Solar Energy Program Application Procedures Submit an electronic Single Application for Assistance Questions Contact CBF at (717) 787-7120

  29. 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.

  30. 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.

  31. 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.

  32. 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.

  33. 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.

  34. 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.

  35. High Performance Building Application Procedures Submit an electronic Single Application for Assistance Questions Contact CBF – SBF at (717) 783-5046

  36. 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.

  37. 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.

  38. 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 CFA’s 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).

  39. 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.

  40. 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.

  41. 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 Authority’s 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.

  42. 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 Authority’s 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.

  43. 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 .

  44. 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.

  45. Alternative and Clean Energy Application Procedures Submit an electronic Single Application for Assistance Questions Contact CBF at (717) 787-7120

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