In addition to growing crops and livestock, the Burkholder family of Richmond Township have become masters of growing through PIDA loan financing.
Michael and Melissa Burkholder were approved by the Pennsylvania Industrial Development Authority (PIDA) for a $400,000 loan at its July 2019 board meeting. This low-interest loan was part of a financing package that will assist in the acquisition of a 95-acre farm along the Fleetwood-Lyons Road in Richmond Township. The Burkholders will use it to expand their cropping operation for corn, wheat, and soybeans.
This project represents the fourth PIDA loan that Michael and members of the Burkholder family have secured in recent years. Michael’s father and brother both have leveraged PIDA assistance for their farm operations as well.
In 2015, Michael’s parents, John and Verna Burkholder used PIDA to help acquire a 117-acre crop farm outside of Fleetwood. In 2013, Michael’s brother and sister-in-law, Wilmer and Nancy obtained a PIDA loan for the acquisition of a 121-acre farm near Fleetwood that is used for raising beef cattle and corn.
PIDA’s current approval for Michael and Melissa is their second PIDA loan. PIDA helped them acquire their current home farm in 2013, which is comprised of a four-barn hog finishing operation as well as 57 acres of cropland.
GBDF Loan History
Since 2005, GBDF has assisted 58 Berks County farm projects with over $15,400,000 in agriculture PIDA loans.
PIDA’s loans assist businesses by working in conjunction with conventional bank loans to provide a complete financing package for the borrower. PIDA’s lending focus revolves around real estate acquisition, construction and renovation of buildings, and machinery and equipment. Its interest rates are below market rate and PIDA often allows its security position to be held as subordinated debt.
PIDA is a state authority established in 1956 to assist in retaining and creating jobs in the Commonwealth of Pennsylvania. It is managed by the Pennsylvania Department of Community and Economic Development.