Pennsylvania Economic Development Financing Authority (PEDFA) Tax Exempt Bond Program
🏛 Pennsylvania Department of Community & Economic Development
✓ Free, no account · Source: Pennsylvania Grants (CODE PA) · Last verified Sep 18, 2026
Can you apply?
This grant is for Pennsylvania businesses seeking low-interest financing for economic development projects. The program issues tax-exempt and taxable bonds to fund eligible initiatives. Applicants must be located in Pennsylvania and demonstrate project feasibility.
Specific eligibility criteria depend on the type of project. Manufacturing, industrial, agricultural, and small business projects are common qualifying activities. Nonprofits may also be eligible for certain project types.
The program requires applicants to work with the Pennsylvania Department of Community & Economic Development. Projects should create jobs or support economic growth in the state.
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Program description
The Pennsylvania Economic Development Financing Authority (PEDFA) was established in 1987 pursuant to the Economic Development Financing Law to provide access to low-interest financing through the issuance of tax-exempt and taxable debt, including bonds or notes.
Who can apply
Eligible applicants
How to apply
Application links
Required documents
- Business plan or project description
- Financial statements (balance sheet, income statement, cash flow projections)
- List of jobs to be created or retained
- Environmental documentation if applicable
- Proof of Pennsylvania location and business registration
FAQ
Who can apply for PEDFA bond financing?
Pennsylvania-based businesses, nonprofits, and organizations with viable economic development projects can apply. Eligibility varies by project type and program component.
What types of projects does PEDFA fund?
The program finances manufacturing, industrial, agricultural, and small business projects. Working capital, equipment, real estate, and facilities are typical uses.
What is the typical timeline for bond issuance?
Bond issuance timelines depend on project complexity and market conditions. Most projects take several months from application to closing.
Are there restrictions on project location?
Projects must be located in Pennsylvania. Some programs may target economically distressed areas or specific regions.
What is the typical interest rate?
PEDFA bonds typically offer below-market interest rates because of their tax-exempt status. Exact rates depend on market conditions and bond type.
💡 Tips for applicants
- Work directly with PEDFA staff early to understand eligibility and project feasibility before formal application.
- Prepare detailed business plans and financial projections showing how the project will create jobs or boost the economy.
- Understand the difference between tax-exempt and taxable bonds for your project needs.
- Assemble a strong team including legal and financial advisors experienced with bond financing.
- Allow adequate time for bond underwriting and approval, which can take several months.
⚠️ Common mistakes
Submitting incomplete or unrealistic financial projections without supporting documentation. Failing to demonstrate clear economic benefit or job creation potential for Pennsylvania. Not understanding PEDFA's specific eligibility criteria for your project type.
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