Pennsylvania Administrative Code

PROJECT ELIGIBILITY § 73.111. Industrial enterprises. The following criteria are used as guidelines by PIDA in determining whether a particular business is eligible to receive funding as an industrial enterprise. PIDA may relax or waive the criteria when justified by the circumst…

§ 73.112a. Agricultural enterprises. The act provides that, to be an eligible agricultural enterprise, the enterprise must, by virtue of its size, require substantial capital and create substantial employment opportunities. The following criteria are used as guidelines by PIDA in…

§ 73.113a. KIZ projects. (a) The KIZ Program was established under 37 Pa.C.S. Chapter 12 (relating to Keystone Innovation Zones) and the PIDA Board was authorized to provide loans for projects in which at least one Keystone Innovation Zone company or ‘‘KIZ company’’ will be locat…

§ 73.12. Job creation requirements. The Authority may establish minimum levels of job creation for its loans, or a requirement that one new job be created for a certain amount of funds loaned, which shall be known as the PIDA cost per job. In establishing a PIDA cost per job the …

ADVANCED TECHNOLOGY PROJECTS § 73.121. General. As set forth in § 73.13 (relating to interest rates), PIDA may provide special interest rates for projects designated as advanced technology. A company will be deemed to qualify as ‘‘advanced technology’’ if it meets one of the foll…

§ 73.13. Interest rates. Interest rates on the Authority’s loans, including penalty interest rates for delinquent loans, will be set by the Authority and will become effective when the Authority prescribes. In setting interest rates the Authority will consider unemployment statis…

FINANCIAL CONSIDERATIONS § 73.131. Industrial development projects. (a) The act requires that an industrial development project be sold or leased to a responsible buyer or responsible tenant. The PIDA interprets this statutory requirement to mean not only the financial ability to…

§ 73.132. Industrial parks and multiple-tenancy building projects. (a) With respect to an industrial park project or a multiple-tenancy project when no investor-developer is involved, the limited financial requirements of the act reduce the financial analysis involved. By their n…

§ 73.14. Interest rate penalty for failure to create projected employment. Job creation projections shall be required on applications for assistance from the Authority for industrial development projects. Industrial occupants have 3 years from the date of occupancy of the project…

ENGINEERING GUIDELINES § 73.141. General. (a) PIDA will expect and require the industrial development corporation (IDC) or the private borrower, or both, to engage professionals that are needed to assure that the project is completed in accordance with applicable laws and accepta…

§ 73.144. Costs. This section sets forth a comprehensive tabulation of items which may be questionable for PIDA financing, together with conditions for or limitations of eligibility used by PIDA in its project review. For ease of tabulations, items are arranged according to the 1…

§ 73.147. Checklist of requirements for a complete and comprehensive industrial appraisal. (a) One independent appraisal by a member of the American Institute of Real Estate Appraisers or by a Pennsylvania-certified appraiser of an acquisition project is required. The appraisal s…

§ 73.15. Maturities. (a) The Authority may establish maximum terms for its loans. In establishing maximum loan terms, the Authority will consider the current state of the commercial lending market and the need to keep the Commonwealth and its businesses competitive. In any case, …

§ 73.16. Disbursement. The Authority loan will be disbursed to reimburse the industrial development agency for eligible project costs incurred and invoiced. Disbursements will be based on information disclosed by an affidavit as to project costs incurred and invoiced and shall be…

PENALTIES § 73.161. General. The purpose of the interest rate penalty is to insure that PIDA’s funds are being properly utilized for employment creation purposes. If a project is not creating jobs, PIDA’s funds would be better directed to those businesses which would comply with …

§ 73.162. Criteria. The following four criteria will be evaluated to determine if a valid explanation exists for failure to meet employment projections. Individually, each would require a ‘‘yes or no’’ decision by PIDA. If PIDA determines that the company has a valid explanation …

§ 73.163. Levying of penalties. If PIDA determines that the failure to meet employment projections is warranted by one of the explanatory criteria in § 73.162 (relating to criteria), a penalty will not be levied. If the failure is not warranted, the following penalty scale criter…

ACQUISITION OF PROJECT PROPERTYTHROUGH STOCK PURCHASE § 73.191. Eligibility; acquisition through stock purchase. An application to finance the acquisition of a project property through a stock purchase may be eligible for financing by PIDA. Source The provisions of this § 73.191 …

§ 73.192. Financial considerations for stock purchase acquisition of assets. (a) If an application is submitted to PIDA to finance the acquisition of a project property through a stock purchase, the following procedures will be followed by PIDA: (1) PIDA will require the submissi…

§ 73.2. Industrial development agencies—certification. (a) An industrial development agency will not be eligible to apply for, or receive assistance from, the Authority until it has been certified by the Authority under this section. An application for certification shall contain…

ENVIRONMENTAL SITE ASSESSMENT § 73.201. Environmental site assessment. (a) Prior to loan closing and unless specifically waived by PIDA, PIDA requires a completed Phase I environmental site assessment report relating to the site of the industrial development project performed by …

APPLICATION REQUIREMENTS § 73.21. General. Applications for assistance submitted by an industrial development agency include items required by the act, as well as other items the Authority may require to establish the eligibility and credit-worthiness of the proposed project, and…

JOB RETENTION PROJECTS § 73.211. General. Although PIDA has focused on encouraging new job creation, a need exists to provide financing to industrial development projects which retain quality jobs. If Pennsylvania’s economy is to rival the economies of the world’s industrialized …

§ 73.22. Taxes. If a beneficial owner, industrial occupant or an affiliate thereof is delinquent on taxes due the Commonwealth, the application will not be considered until the taxes are paid in full or evidence is presented of a satisfactory arrangement agreed to by all parties …

§ 73.23. Commitments and fees. A commitment issued by the Authority is not effective until the industrial development agency and the industrial occupant and, if applicable, the beneficial owner of the project have accepted and acknowledged the commitment and paid the commitment f…

§ 73.3. Industrial development agency code of ethics. (a) The following applies to industrial development agencies: (1) An officer, director or employe of an agency who is a party to or who is interested in a project shall disclose the nature and extent of the interest to the boa…

MISCELLANEOUS § 73.301. Removal. One of the statutory loan application requirements is evidence that the establishment of a project will not cause the removal of a facility from one area of the Commonwealth to another. Because there is no statutory definition of the word ‘‘area,’…

§ 73.303. Payment of interest only; commencement of amortization. For construction projects, the PIDA commitment and loan documents generally provide for the payment of ‘‘interest only’’ during construction or through a date reasonably certain as approved by the PIDA, whichever o…

§ 73.306. Closing requirements. Documentation and other requirements for the closing of PIDA’s loans must be in form and substance satisfactory to counsel for PIDA. PIDA’s counsel may require documentation as may be reasonably necessary to insure that PIDA’s loan is properly secu…

§ 73.308. Loan terms: industrial parks and multiple-tenancy building projects. The terms of industrial park loans and multiple-tenancy building project loans are generally as follows: (1) Industrial park loan terms are 15 years. No principal will be required to be paid during the…

§ 73.309. Commencement and refinancing. A project may only be financed by PIDA if the project is commenced after PIDA approves either assistance for the project or the commencement of the project. For this purpose, commencement includes taking title to project property, and actua…

FINANCIAL CONSIDERATIONS § 73.31. Industrial development projects. (a) An industrial development project may be sold or leased only to a responsible buyer or a responsible tenant. A responsible buyer or responsible tenant shall have the financial ability to repay the Authority’s …

§ 73.310. Investor-developers. PIDA will participate in projects in which the project will be purchased or conveyed by the industrial development corporation to an investor-developer. The guaranty of the industrial occupant will not be an automatic requirement in single-tenant an…

§ 73.311. Subleasing. (a) Industrial development projects: (1) No portion of the project may be leased to unrelated third parties without the prior written consent of PIDA and the following apply: (i) When subleasing to an eligible activity, such as manufacturing and industrial, …

§ 73.312. Related parties. PIDA will not generally participate in a project if persons having a significant ownership interest in the party selling an asset or assets, either individually or in the aggregate, will also have an ownership interest in the party buying the asset or a…

§ 73.313. Loss sharing agreement. Following certification of an industrial development agency by the PIDA, the PDIA may enter into an agreement with the agency for the sharing of losses between the PDIA and the agency on industrial development projects. A loss sharing agreement e…

§ 73.4. Training requirement. (a) Each industrial development agency shall cause at least one officer or staff member whose primary responsibility includes the Authority program to attend at least once during each calendar year a training seminar sponsored or cosponsored by the A…

§ 73.5. Annual reporting requirement. Each industrial development agency shall submit annually to the Authority the following: (1) Financial statements of the agency prepared by an independent certified public accountant. After reviewing the financial statements, the Authority ma…

MISCELLANEOUS § 73.51. Conflicts of interest—attorneys. The industrial development agency and the beneficial owner or industrial occupant may not be represented by the same attorney or law firm in matters relating to the Authority’s loans, nor may the same attorney or law firm re…

§ 73.52. Contractors. An industrial occupant, beneficial owner or a related firm may act as the general contractor on a project as long as work is performed by unrelated contractors. If an industrial occupant, beneficial owner or a related firm is performing its own work using it…

§ 73.53. Insurance proceeds. If a project is intended to replace a facility destroyed by fire or other casualty, the insurance proceeds for the destroyed real estate shall be invested into the new project.

§ 73.54. Financial consultant to Authority. The Authority will engage the services of an independent financial consultant to advise the Authority on the financial ability of responsible buyers and responsible tenants, and to provide other financial analysis as required or desired…

§ 73.55. Workouts. The requirements in this chapter, which are not otherwise mandated by the act, are not applicable to loans made, assigned or amended pursuant to a workout plan relating to a prior loan made by the Authority, whether the borrower is the same or a different entit…

§ 73.56. Small businesses. (a) In determining whether a business qualifies as a small business, and therefore is eligible for increased Agency participation, the Authority will require the principals of the business and the business itself to submit a disclosure statement listing…

§ 73.57. Use of grant funds. The use of Federal, State or local government grants or private grants for an industrial development project will reduce the cost of the project for the purpose of determining the level of the Authority’s participation.

§ 73.58. Inspection by the Authority. Each industrial development agency, beneficial owner and industrial occupant which applies for and receives a loan from the Authority, or which receives direct benefits from an Authority loan, will permit authorized employes or agents of the …

§ 73.59. Statements of policy and guidelines. The Authority may issue statements of policy or guidelines as necessary to implement this chapter and the act. See Subchapter B (relating to statement of policy).