Skip to content

SEDA-COG Offers Limited-Time, Ultra-Low Interest Loans for Businesses

September 15, 2017

From SEDA-COG

For a limited time, a 2% fixed interest rate is being offered for Pennsylvania Industrial Development Authority (PIDA) loans, which are offered through SEDA-COG.

Those interested should contact SEDA-COG (contact info is below) before Nov. 15, as applications need to be received by Dec. 31 to get this excellent rate locked in.

The PIDA board approved this interest rate incentive to encourage businesses to make investments and grow jobs in Pennsylvania. For more information about PIDA and eligibility, click here.

Then, starting on Jan. 1, 2018, interest rates will be set quarterly on Jan. 1, April 1, July 1, and Oct. 1 of each year using the current 10-year U.S. Treasury rate as an index benchmark, as follows:

  1. Real Estate Loans: The borrowers will have four options:a. For term loans with a regular amortization, a fixed interest rate for the full term of the loan, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.

    b. For term loans with a regular amortization, a fixed interest rate for the first seven years of the loan term, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point. After the initial seven-year period, the rate will automatically reset to the then-current 10-year U.S. Treasury rate, rounded to the closest quarter point. The reset rate is limited to a 200 basis point increase/decrease.

    c. For 10-year term loans with a 20-year amortization period, a fixed interest rate for the full term of the loan, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.

    d. For 10-year term loans with a 20-year amortization period, a fixed interest rate for the first five years of the loan term, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point. After the initial 5-year period, the rate will automatically reset to the then-current 10-year U.S. Treasury rate, rounded to the closest quarter point. The reset rate is limited to a 200 basis point increase/decrease.
     

  1. Equipment Loans: A fixed interest rate for the full term of the loan, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.
  1. Working Capital and Account Receivable Lines of Credit: A fixed interest rate for the 12-month term of the credit line, set at the 10-year U.S. Treasury rate, rounded to the closest quarter point, plus 100 basis points.
  1. Pollution Prevention Assistance and Energy Efficiency Loans: A fixed interest rate of 2% for the full term of the loan. 

To take advantage of this ultra-low interest loan, contact SEDA-COG at 570-524-4491 or email one of its senior relationship managers directly!

John Reichard, Senior Relationship Manager II

Ray Haden, Senior Relationship Manager I

The Columbia Montour Chamber also offers its own ongoing low interest loan program, which allows qualified borrows to take out between $5-20K for no longer than five years. 

Scroll To Top