The McKinney Economic Development Corp. and Raytheon, a Massachusetts-based company with a plant in McKinney, entered into a loan agreement in January for the company’s new manufacturing facility.

In August, Raytheon announced plans for a new 120,000-square-foot office and manufacturing building as well as about 500 new employees for the McKinney campus.

Under the incentive agreement recently obtained by Community Impact Newspaper, Raytheon could receive up to $7.01 million in the form of a non-interest-bearing loan if it fills all 500 positions as well as makes improvements to the property that increases its value to a certain amount.

The agreement is structured to create jobs with higher salaries, with the largest bonuses awarded for employees earning more than $100,000 a year.

The MEDC will provide Raytheon with loan advancements for each new employee with a salary greater than $65,000. Jobs with salaries greater than $100,000 a year would earn the maximum $5,000 bonus per employee.

The maximum amount Raytheon could receive is $2.5 million for 500 total employees earning more than $100,000 a year over the course of the agreement.

If Raytheon retains these employees through the end of 2027, it will not have to pay back the money to the EDC, according to the MEDC incentive agreement.

“The MEDC utilizes our resources to help grow and stabilize the economy in McKinney,” MEDC President Peter Tokar said in an email. “Every dollar we invest in a corporate expansion is carefully weighed and evaluated to make sure we are investing in projects that create high-skill, high-wage jobs and new tax revenue to the City of McKinney. “

The full amount of the loan will be paid to Raytheon no later than Dec. 31, 2027.

The facility is slated for completion in summer 2021.

Editor's note: A previous version of this story incorrectly stated where Raytheon was based. The company is based in Massachusetts.