Loan Programs
The Business Development Center (BDC) offers a variety of financing products for commercial real estate development and small and medium size business development. These are gap financing products and work in conjunction with private equity and private debt to help businesses close the financing for their business growth and expansion.
Our programs are specifically designed to meet the needs of small businesses, growing businesses, and urban / infill real estate development. BDC programs work with every sort of financing including private banks, new markets tax credits, historic tax credits, and more. A loan from the BDC reduces risk and frees up cash flow by reducing the equity requirement and reducing the bank’s exposure.
The BDC also employs a large network of technical assistance providers and partners to help business start, improve, and grow. No matter what the business need, we can help.
For more information on how a loan through the Business Development Center can work for you, please view our sample deals and loan structures.
- Sample Loan Structure
- Manufacturing Company
- High Technology
- Architecture Firm
- Restaurant
- Commercial Real Estate
How to Apply
A loan officer at the BDC can provide a loan application and walk you through the loan application process.
If you are a business owner, a BDC loan officer will work with you to understand your business and financing needs, identify the best product to meet your needs, and help you work with a private lender to structure and package your financing. If you are a private lender, a BDC loan officer can work with you to match your client with the appropriate BDC financing product, reduce your risk and exposure, and coordinate the approval and closing process with your own.
The BDC is committed to making the loan application, approval and closing process as efficient as possible and will work as quickly as the borrower and private lender are able.
The BDC does not have exclusive relationships with any private lenders. The BDC will work with any private lender in order to make their financing package work.
How to Qualify and Underwriting Criteria
The BDC wants your business to succeed, and will work closely with all borrowers to make sure their business is prepared to handle for debt financing and will be able pay the debt back. Please use Borrowing 101, as a guide to help you understand the BDC's underwriting process.
The BDC examines traditional core attributes of borrowers when making financing decisions like:
- Collateral
- Cash Flow (capacity to repay)
- Credit Analysis
- Character
- Capital
(Above links are to 504experts.com)
In addition to these criteria, the BDC looks to invest in projects that are improving blighted buildings, creating jobs, and are revitalizing communities.
Program Guidelines and Summaries
The BDC offers a range of programs for eligible businesses in different industries or areas. We will match your business growth needs with the appropriate financing tool.
INELIGIBLE BUSINESSES: Bars, adult entertainment, non-profits, banks, savings & loan associations, and non-independently owned gas stations are generally not eligible for Urban Redevelopment Authority financing programs.
Learn more about the loan review and process steps necessary when obtaining a loan through the URA.
Urban Development Fund
Financing for non-owner occupied real estate developments in the City of Pittsburgh.
Pittsburgh Business Growth Fund
Financing for small and medium sized businesses for working capital, equipment, and leasehold improvements.
Pittsburgh Entrepreneur Fund
Financing for new and growing emerging technology-based firms, including Technology, Life Sciences, Sustainable / Green and other emerging industry clusters for working capital, laboratory, computer, and scientific equipment, leasehold improvements, real estate, and investments to lower energy usage.
SBA 504
Long-term fixed rate financing for owner occupied real estate development and business financing.
Others
- Pennsylvania Industrial Development Authority
- Pennsylvania Economic Develoment Financing Authority (PEDFA)
- Pittsburgh Development Fund
- Public Space Improvements
- Real Estate Readiness Program
- Technology Seeding Program
In addition, the BDC can packages state Small Business First and Machinery and Equipment Loan Fund applications. See www.newpa.com for these guidelines.
Frequently Asked Questions
What are the sources of funds for the BDC loan programs?
Typically our products are funded by Revolving Loan Fund (RLF) programs that were initially seeded by Federal Community Development Block Grants or funds from the Pennsylvania Department of Community and Economic Development. By utilizing RLFs, the BDC can re-lend its limited dollars several times to many different borrowers.
Why doesn’t the BDC have grant programs?
The BDC has extremely limited dollars for unlimited business and community needs. In order to sustain BDC programs, we must utilize loan programs that will be re-paid in order to re-lend funds to other borrowers. Sources of venture capital and small grant opportunities can be found in the resources section.
How do I start the application process?
Contact a BDC loan officer at bdc@ura.org or 412-255-6669.
How long is the application, underwriting, and closing process?
The length of the process depends on the project. However, the BDC is committed to working as quickly as the borrower and private lender are able to package, underwrite and close the financing. Typically the process will take 30-90 days.
What is the BDC’s capacity to carry out these programs?
The BDC staff includes professional loan officers that have the same professional credentials as private lenders, engineers, legal staff, finance professionals, and professional management staff. We are uniquely capable of handling your project professionally and responsibly.