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State authority slashes interest rate on business loans

From Central Penn Business Journal

In a bid to spur investment in Pennsylvania, a state authority is offering a temporary break on interest rates for loans available to manufacturers and other businesses.

The Pennsylvania Industrial Development Authority dropped its rate for business loans to a 2 percent fixed rate, officials with the Pennsylvania Department of Community and Economic Development said.

“PIDA is offering this reduced interest rate for a limited time to encourage businesses to make investments and grow jobs in the commonwealth,” said DCED Secretary Dennis Davin.

The previous was 4 percent rate.

PIDA loan rates are normally set using a traditional spread above the 10-year U.S. Treasury rate. They are readjusted quarterly, and typically vary depending on the purpose of the loan, state officials explained.

A wide variety of businesses, including manufacturers, farms, hotels, tech companies and developers, use PIDA loans, state officials explained.

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PA Workforce Development Association