One of the major costs of developing a property is utility infrastructure. It can be very costly to get water, sewer, and electrical service to new buildings. In many cases around Berks County, we heard from municipalities and developers alike that these costs often halt or prevent development of an otherwise desirable property.
This is why Berks IDA is partnering with Berks County to create a new infrastructure loan fund. The county is allocating 5 million dollars to this revolving loan fund that will lend to municipalities to solve their infrastructure capacity constraints. Loan terms will be at very favorable rates and repayment periods. These 20-year loans will be tied to treasury interest rates and go as low as 1.5%, and require no payments for five years or until development begins without no pre-payment penalty.
By offering low-cost options for investing in our County’s infrastructure, we expect the fund to be a catalyst for growth in Berks County. By growing our economy, County taxpayers can benefit from growth to the tax base without raising taxes.
While other areas offer this kind of program, Berks IDA’s infrastructure loan fund is the first of its kind in Berks County. We expect to start offering loans as soon as September 2024. To find out more about the program, contact Jeremy Zaborowski today.