Working Capital & Equipment Loan

Supports small and midsize businesses and nonprofits that need term financing for working capital, equipment, or leasehold improvements to support their growth.


Small and midsize businesses meeting the following criteria are encouraged to contact PIDC to discuss eligibility:

  • Employ at least four employees
  • Have revenues between $150,000 and $10 million
  • Have been in operation for at least two (2) years
  • Are located in or plan to locate to the City of Philadelphia
  • Priority given to businesses that are located in a low-to-moderate income census tract or primarily employ low-to-moderate income individuals


Available either for new projects or refinancing of existing debt related to:

  • Working capital
  • Machinery and equipment purchases
  • Building improvements
  • Leasehold improvements
  • Real estate acquisition & construction (speculative real estate ventures are not eligible)


The Working Capital and Equipment Loan is available as a senior or subordinate loan product with the following terms:

Loan Amount $50,000 to $750,000
Term Flexible
Interest Rate Prime rate plus 300 basis points – approximately 6.25%.
Equity Required Varies based on the use of funds
Underwriting Combination of credit, cash flow, collateral, financial position, management capacity, and industry risk.


Client submits a completed application to PIDC for staff review, at which time a thorough credit analysis is performed.  For applications that receive a positive credit evaluation, the loan is presented to the PIDC Loan Committee and the Board of Directors.  Following loan approval, PIDC issues a commitment letter to the applicant. Settlement of the loan may occur once the terms of the commitment are satisfied. The process from application submission to settlement generally takes approximately 60 to 90 days to complete.


Fees will vary with each transaction and generally include:

Application $250-$1000 depending on loan size - nonrefundable fee, payable at time of application submission
(application fee waived now through August 31st)
Origination 1.5% of the financing amount provided, payable upon acceptance of PIDC's commitment letter.
Closing Approximately $500 - $3,750, depending on loan size (does not include third party costs such as appraisals, construction monitoring, and UCC filings). Fees are subject to change. Please confirm all transaction fees with PIDC prior to application.