Lancaster business owners: a bigger financing option deserves a second look

The news

EDC Lancaster County reported on August 24 that the PIDA-SBF limit for eligible real estate and construction projects increased from $400,000 to $1 million, capped at 50% of eligible project costs. It also reported elimination of PIDA’s 1% commitment fee. Eligibility, underwriting, funding availability and approval still apply.

My take

This deserves a phone call before you assume buying a building is out of reach. It does not mean every small business qualifies, and it does not mean a larger loan makes a purchase smart.

The useful question is whether ownership helps the business operate better while leaving enough cash to run it.

The other side

More borrowing capacity can tempt an owner to buy more building than the business needs. Improvements, maintenance and cash tied up in real estate still matter. Compare the full ownership plan with a realistic lease alternative.

What to do next

Bring EDC Finance and your lender into the conversation early. Ask which costs qualify, what additional funding is needed and how approval timing fits the purchase. Then evaluate the property itself. Financing should support a sound decision; it cannot rescue a poor fit.