Is your small business looking for financing for growth, but the banks are not interested because you are too small, or you do not have a long financial history or maybe you have suffered financial problems in the past? do not worry. You are not without options. You need to talk to the Philadelphia Industrial Development Corporation, now known simply as PIDC.
Do not despair of the word “industrial”. PIDC is an independent nonprofit organization co-founded by the City of Philadelphia and the Greater Philadelphia Chamber of Commerce that provides funding for Philadelphia businesses using money from the city and other public and private sources.
“The mayor and his senior members of the cabinet, as well as a member of the City Council, are on our board, and the Chamber of Commerce also appoints some of the board members,” said Anne Boward Nevins, president of PIDC. “It really is a place where the public and private sectors come together to drive growth in Philadelphia.
The organization’s goal – which has about 55 people in two city locations – is to help the city’s business grow and – most importantly – create jobs. So any funding project that aims to achieve these goals is something that the organization, which launched in 1958, will consider. PIDC provided capital and resources that helped revitalize neighborhoods, launch the Philadelphia Navy, and help even the smallest companies when they couldn’t get help from other sources.
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David Sims is a great example of a small business owner who has recently benefited from PIDC funding. His nine-person catering business in Cedarbrook – Eatable Delights Catering – needed capital to relocate locations and he had difficulty getting help from local banks due to a bad credit history.
“I went to PIDC because I was in a bad rental situation and I wanted to buy my own property,” he said. The organization helped Sims clear his past detention rights and subject him to one of their popular “training camps,” which teaches participants the basics of running a business.
“They really worked with me so I could become a better product for their product,” Sims said. “They were very good at guiding me and holding my hand, because I didn’t know anything about getting a commercial mortgage.
There is a misconception among some of my clients that PIDC only finances real estate transactions. But this is not the case. Most of PIDC’s clients are smaller companies seeking financing that they have failed to secure with a traditional bank and are not necessarily related to real estate.
Since its inception more than 60 years ago, the organization has provided $ 31 billion to Philadelphia-based businesses – manufacturers, retailers and retailers, as well as minority and non-profit organizations – in about 10,000 transactions, mainly through tax-free loans and Technical support . Funding has also been provided for working capital and for the purchase of equipment and other assets.
PIDC finances its operations through transaction, financial and consulting fees. The organization also conducts business builder seminars in partnership with Comcast RISE and has partnered with dozens of organizations both nationally and in the field that provide support and services for small businesses.
PIDC also funds developers who want to start or complete neighborhood projects, and helps its clients use certain tax relief programs for low-income polluted areas. It also offers tax-exempt bond schemes that benefit both producers and non-profit organizations. Among its recent activities, the organization has invested $ 27 million in projects led by color developers, which have supported more than $ 115 million in additional investment since early 2020.
After quitting his existing bank, Stephen Reeves – who runs a non-profit organization for diversity, equity and inclusion called Montage Diversity – sought out PIDC’s $ 50,000 loan to help hire a new employee in 2020. Like a bank loan, Reeves says he had to provide “typical loan documentation”, including tax returns and financial documents, and was able to easily obtain funds directly from PIDC.
“Apart from some banks, PIDC is ready to talk to entrepreneurs because they are here for that,” he said. Reeves told me that he plans to contact the organization for more funding in the near future.
Although many small businesses are looking for PIDC for loans instead of traditional bank loans, the organization is also partnering with banks to help provide additional funding that complements what the bank already offers.
“Maybe the business needs a term loan and the term loan exceeds what the bank is willing to do for this particular client,” said Boward Nevins. “It can be a great opportunity for us to get involved. We have much more flexibility and even – in some cases – we can get approved loans that are secured. “