Seeing the need to promote economic development, such is in parts of the Philadelphia area that could use some economic revitalization, the state has created the Pennsylvania Industrial Development Authority as a source for government-backed capital that aspiring businesspeople can access to fund their businesses.
Residents of Pennsylvania can apply for a loan through the Authority in order to purchase commercial property. Incidentally, they can also use these industrial development loans for the purchase of equipment and other capital as well as a line of credit. The advantage to these types of loans is that, like other government-backed loans, they come with a lower interest rate than what one might get on the private market. Although collateral is required, such requirements are also relatively easy to manage.
What this means is that Philadelphia residents can get help they need to start a business, so long as the aim of the business is to bring more jobs into the Pennsylvania economy. Those who apply for these loans need to be aware that, at least for real estate purchases, the repayment term is 15 years. Currently, a person can finance up to $2.25 million through an industrial development loan.
Of course, there are a lot of legalities and paperwork that come with the territory should a person decide that an industrial development loan is the right option for them. No doubt that as part of the loan underwriting process, the Authority is going to want to be sure the proposed property is suitable and that there is clear title to it. This is one area in which a qualified Philadelphia real estate attorney can be of valuable assistance to a Philadelphia businessperson.