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Tax-exempt Financing

Industrial Development Authority (IDA)

Tax exempt mortgages or bonds play a critical role in business financing and can be used to finance land acquisition, buildings, associated machinery and equipment.  Lenders using tax exempt loans are not required to pay taxes on the interest income from the loan which enables them to offer lower interest rates to the borrower.  Tax exempt loans are limited to eligible borrowers which include manufacturers, first time farmers, and 501c3 organizations.

Tax-exempt bank loans are made through an Industrial Development Authority (IDA), a federal entity designed to create or retain projects for economic and employment benefits throughout Pennsylvania. Because of the program’s federal and state tax exemptions, it offers a win/win to both lender and borrower.

CCEDC works in collaboration with three Industrial Development Authorities – Chester County IDA, Central and Western Chester County IDA, and Uwchlan Township IDA.  Contact us today so we can help you navigate the many nuances involved in acquiring a tax-exempt loan.

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Next Generation Farmer Loans

Southeastern Pennsylvania has a rich agricultural history that continues to play an important role in the community and its economy. To help ensure that these traditions are handed down to the next generation, CCEDC is proud to administer the Commonwealth’s Next Generation Farmer Loan (NGFL) Program.

A NGFL is a cost-effective way for beginning and first-time farmers to get a loan for their growth.  The loan is federal and state tax-exempt for the lender, who passes that benefit off to the borrower in the form of a lower interest rate!

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