Available programs

There are several ways in which LIDA can assist in financing for qualified projects:

1.  For projects involving a substantial amount of money, LIDA can issue bonds, the interest on which will be tax free, and the proceeds of which will be loaned to the organization for the construction or acquisition desired.

2.  LIDA is the access route for the Pennsylvania Economic Development Financing Authority (PEDFA), a state program to accumulate small projects for tax-free financing with the bonds involved issued by PEDFA.

3.  Nonprofit 501(c)(3) organizations can use bank-qualified financing, which involves a direct loan from a bank for the organization’s expansion. There are restrictions imposed by the Internal Revenue Code limiting the amount of such funding that any authority can issue and limiting the amount that any individual organization can use. Such an organization may also participate in PEDFA bond issues or proceed with a bond issue by LIDA.