The Pennsylvania Regional Center – New American Development Fund
Low-cost loans to enterprises with job-creating projects located within the Commonwealth’s federally-designated EB5 regional center. The federal EB5 investor program grants eligible foreign investors the opportunity to obtain an EB5 visa if they commit to invest funds in job-producing development projects in the United States. Funds may be used to finance new construction, the acquisition of plant, property and equipment, building rehabilitation, tenant improvements, and working capital.
Guidelines
Uses
New construction; land and building acquisition and rehabilitation; machinery and equipment acquisition; tenant improvements; working capital.
Funding
Loans no less than $1,000,000; no upper limit. In general $500,000 may be borrowed for every 10 new direct or indirect jobs that the borrower can demonstrate the project will create
Eligibility
Credit-worthy developers, businesses and other enterprises with projects to be located within the boundaries of Pennsylvania’s federally-designated EB5 regional center. Projects must generally be located in either a rural area or an area of high unemployment or economic distress.
Terms
Loan term is generally 5 years, interest-only, with a balloon payment at the end of the term. Interest rate is determined on a case-by-case basis. Borrowers will be required to post collateral to secure a NADF loan; often a first lien position on a piece of real property or other asset will be required.
Where to Apply
DCED’s Center for Private Financing (please refer to Guidelines)