BACKGROUND

The Cumberland County Industrial Development Authority (CCIDA) is an entity formed as a public instrumentality of the Commonwealth of Pennsylvania, organized and existing under the Industrial and Commercial Development Authority Law, as amended, now known as the Economic Development Financing Law. The Authority was organized by the County of Cumberland and incorporated on August 4, 1969. The Authority works in close cooperation with the Cumberland County Office of Economic Development. It functions through its Board members and advisors and provides financing and other services authorized to it by State law under the Economic Development Financing Law.

BENEFITS OF WORKING WITH THE CCIDA

What are the benefits for Banks?

Banks receive the benefit of the borrower’s participation in other available programs and, to the extent tax-exempt financing is available, banks do not pay taxes on the income earned on the particular loan. Often banks will insist upon a loan being “bank qualified” which also affects advantageously the cost of money loaned by the bank.

What are the benefits for Customers?

Applicants to the Authority receive access to the full variety of programs available to them, either from the Commonwealth or Cumberland County or perhaps directly from the Authority itself. To the extent the Applicant qualifies, Applicants receive a lower, i.e., tax-free, interest rate on the loan acquired. There may be additional advantages as well to the extent the Authority is involved in the promotion of economic development, promotion of public and private infrastructure, and/or production and development of available facilities such as within an Authority sponsored commerce or industrial park.

Since 1990, CCIDA rates have averaged approximately 50% of prime interest rate.

Terms are based upon a negotiated letter of credit and can go as far as 30 years.

Direct tax exempt loans are also available which eliminates the need of obtaining a letter of credit.

What financing products are available?

Through bonds, the CCIDA may finance nearly any lawful activity within the County of Cumberland on a taxable basis. Tax-exempt financing is limited only to eligible industries which include Manufacturing, Industrial, Non-Profit 501(c)(3), Energy, Solid Waste Disposal, Wastewater Treatment, Transportation Facilities, and Assisted Living/Housing.

What can I use these funds for?

Financing obtained through the CCIDA can be used for: Real Estate acquisition, construction, renovation or expansion, machinery and equipment acquisition and installation, financing costs, designated infrastructure, tax-exempt refinancing.

For information on the CCIDA's Board of Directors, click here.

For information on the CCIDA's Legal and Bond Counsel, click here.