PRINTER'S NO. 3493
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2369
Session of
2020
INTRODUCED BY GAYDOS, SOLOMON, BARRAR, CIRESI, DALEY, A. DAVIS,
DONATUCCI, GROVE, HANBIDGE, HOHENSTEIN, ISAACSON, KULIK,
MALAGARI, MERSKI, MURT, RAVENSTAHL, ROZZI, SANCHEZ,
SCHLOSSBERG, SCHWEYER, STRUZZI, WEBSTER, ZABEL, JONES,
DeLUCA, STAATS, WILLIAMS, HILL-EVANS AND MACKENZIE,
MARCH 23, 2020
REFERRED TO COMMITTEE ON COMMERCE, MARCH 23, 2020
AN ACT
Amending the act of June 29, 1996 (P.L.434, No.67), entitled "An
act to enhance job creation and economic development by
providing for an annual financing strategy, for opportunity
grants, for job creation tax credits, for small business
assistance, for the Small Business Advocacy Council, for a
family savings program, for industrial development
assistance, for community development bank grants and loans
and for tax-exempt bond allocation; conferring powers and
duties on various administrative agencies and authorities;
further providing for various funds; and making repeals," in
Community Development Bank Grant and Loan Program, further
providing for authority loans; and making appropriations.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2507 of the act of June 29, 1996
(P.L.434, No.67), known as the Job Enhancement Act, is amended
to read:
Section 2507. Authority loans.
[The] (a) General rule.-- Subject to the provisions of
subsections (b) and (c), the authority may make loans to
eligible institutions from moneys appropriated to the program on
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such terms and conditions as the authority may determine. Loans
shall be made by the authority pursuant to the act of August 23,
1967 (P.L.251, No.102), known as the Economic Development
Financing Law. Loans shall be made and used in a manner
consistent with the requirements of the Community Development
Banking and Financial Institutions Act of 1994 (Public Law 103-
325, 108 Stat. 2163) or any successor thereto. Loans to eligible
institutions may be made by the authority as the sole lender or
in cooperation with participating investors pursuant to
agreements entered into in accordance with this chapter. Loan
repayments shall be used by the authority to make new loans to
eligible institutions.
(b) Rapid relief loans.--The following apply:
(1) The authority shall approve, to the extent money is
appropriated or available to the authority for the purpose,
rapid relief loans to eligible small businesses as provided
in this subsection.
(2) A loan under this subsection may not exceed $75,000,
shall not accrue interest for the first nine months after the
loan is disbursed and shall be subject to such terms and
conditions as to repayment and interest rate as determined by
the authority. The loan shall include a provision that
requires the loan recipient to work with a small business
development center or other technical assistance provider
during the life of the loan.
(3) A business shall be eligible for a loan under this
subsection if the business is based in this Commonwealth,
employs not more than 50 individuals, is a small business as
determined by the authority and suffered severe financial
loss as a result of a disaster declaration of the Governor.
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(4) If the amount of money appropriated or available to
the authority for the purpose of loans under this subsection
is insufficient to fully fund all of the loans requested
under this subsection, the authority shall make a pro rata
distribution of loan amounts.
(c) Resilient recovery loans.--The following shall apply:
(1) The authority shall approve, to the extent money is
appropriated or available to the authority for the purpose,
resilient recovery loans to eligible small businesses as
provided in this subsection.
(2) A loan under this subsection may not exceed $250,000
and shall be subject to such terms and conditions as to
repayment and interest rate as determined by the authority.
The loan shall include a provision that requires the loan
recipient to work with a small business development center or
other technical assistance provider during the life of the
loan.
(3) A business shall be eligible for a loan under this
subsection if the business is based in this Commonwealth,
employs not more than 50 individuals, is a small business as
determined by the authority and suffered severe financial
loss as a result of the COVID-19 pandemic during 2020.
(4) If the amount of money appropriated or available to
the authority for the purpose of loans under this subsection
is insufficient to fully fund all of the loans requested
under this subsection, the authority shall make a pro rata
distribution of loan amounts.
Section 2. The sum of $7,500,000 is appropriated to the
Pennsylvania Economic Development Financing Authority for the
purpose of making rapid relief loans under section 2507(b) of
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the act.
Section 3. The sum of $2,500,000 is appropriated to the
Pennsylvania Economic Development Financing Authority for the
purpose of making resilient recovery loans under section 2507(c)
of the act.
Section 4. This act shall take effect immediately.
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