Business in Our Sites Grants and Loans
Empowers communities to attract growing and expanding businesses by helping them build an inventory of ready sites
Guidelines
Uses
All site development activities required to make a site "shovel ready"; For speculative projects only
Funding
No maximum or minimum, except that the maximum amount of the funding for projects located within a single city, borough, town or township may not exceed 15% of the funds available for the program; Grants may not exceed 50% of the total amount of the financing provided, or $5 million, whichever is less.
Eligibility
Municipalities; Municipal Authorities; Redevelopment Authorities; Industrial Development Agencies; Private Developers
Terms
Loans will be "patient" no repayment until property is sold or leased; Site must be previously utilized property or undeveloped property that is planned and zoned for development; Counties/municipalities must be notified; Substantial likelihood of site use following development, nor for primary residential or recreational purposes; Private developers are not eligible to receive grant funds; Interest rate for the loan will be set by the Commonwealth Financing Authority
Where to Apply
Customer Service Center, Electronic Single Application for Assistance
FAQs
What is Business in Our Sites?
Business in Our Sites is a $300 million statewide loan and grant pool, created by the issuance of bonds. This money will be made available to communities statewide to help them develop shovel-ready sites to accommodate expanding businesses, thus building the local and regional economy and ultimately creating jobs.
What communities will benefit from this fund?
The Business in Our Sites Fund will be available to municipalities statewide, either directly or through related redevelopment authorities, municipal authorities and economic development organizations. Emphasis will be given to communities that lack the resources necessary to invest in site preparation.
How much money will be available?
$300 million will be available with the amount per applicant varying according to need and community support.
How can the funds be used?
Funds may be used to acquire land, conduct environmental assessment and remediation, and perform demolition. The funds may also be used for site preparation activities and installation of infrastructure, including but not limited to, sewer, water, storm water, utilities and telecommunications, both on site and as needed to bring service to the site. They may also be used for access roads or other necessary on-site and off-site transportation improvements. These include rail, costs associated with engineering, legal and other professional services; and any other activities necessary to make a specific site ready for reuse.
What if my community needs technical assistance?
Business in Our Sites recognizes that many smaller communities lack the expertise or resources to perform the upfront work required to pull together a site preparation project. Up to $10 million will be provided as grants for feasibility studies, which can be very expensive.
How do I know if my community should submit an application for Business in Our Sites?
You should apply if your community can demonstrate that there is a substantial likelihood of property reuse if the property is made site-ready. Projects that focus on generating economic growth, redeveloping brownfields or underutilized sites, revitalizing downtowns and otherwise strengthening existing communities will receive preferred consideration. Greenfield projects, locally planned and zoned for development will be permitted, but redevelopment and reuse should always be the first option.
What are the terms of the financing and what will the repayment requirements be?
Business in Our Sites can best be thought of as "patient capital." The ability to move projects along depends heavily upon the site location. In some areas the inventory will be absorbed quickly; in others the rate will be slower. In general, applicants will not be required to start repayment of loans until they start selling or leasing the prepared inventory of sites. The repayment schedule will be determined principally according to the following conditions:
- Upon the sale of the property, all or part of the purchase price will be paid as repayment of the loan principal. If the purchase price is not sufficient to repay the full amount of the outstanding loan principal, a low interest rate will be applied to the remainder of the loan balance and a repayment plan negotiated for the balance of the loan. This repayment plan will be flexible as to term and amount, consistent with the ability of the applicant to repay, using resources available to the applicant or to the host municipality (including tax revenues).
- If the property is leased, a low interest rate will be applied to the entire loan balance, and an amortization schedule established so that the loan may be repaid over time through a portion of the rental payments received.
- If the property is neither sold nor leased during a five-year period following completion of site preparation activity, the applicant may be asked to transfer title to the property to the Commonwealth.
- For developers who intend to remain on the site, and construct a facility, a moratorium on interest and principal payments may be offered until a certain percentage of the facility is leased or pre-leased.
How can I obtain grant funding for my project?
One-third of the monies available under the program will be provided in the form of grants. The applicant must demonstrate that the project cannot support repayment of a loan for the full amount of the project. Grants will be provided only in combination with a loan under the program. Grant funds will be limited to 50% of the total funds awarded or $5 million, whichever is less, and may be used only for certain activities, such as environmental assessment and remediation. Private developers are not eligible for grant funding.
Who will administer the program?
The Commonwealth Financing Authority will be the administrator of the Business in Our Sites Fund, and will issue the bond to capitalize the funds.
Why is the Commonwealth creating this fund?
A municipality has a better chance of convincing a business to locate, expand or stay within its area if it can provide a site for the business in a ready-to-build status. However, there are few such sites available. The problem is greater for small communities which have fewer resources to devote to site-ready development. In addition, the existence of an inventory of ready-to-build sites utilizing former industrial or commercial sites should reduce the demand for greenfield sites.
How will the Fund work?
Business in Our Sites will be a $300 million revolving loan fund, with up to $10 million reserved for predevelopment planning assistance grants for ready municipalities and another $100 million available as project grants. All repayments of loan proceeds, either through the sale of property or loan repayments, interest payments and interest earned on fund investments, and any other funds derived from any other source would be deposited into the revolving loan fund and would be made available for future loans or for repayment of bond proceeds.
Purpose of Funding
- Community Development
- Infrastructure
- Land & Building
- Site Development - Business