PRINTER'S NO. 4208
No. 2786 Session of 2002
INTRODUCED BY J. TAYLOR, ADOLPH, M. BAKER, BARRAR, BELFANTI, BROWNE, BUNT, CAPPELLI, CIVERA, L. I. COHEN, CREIGHTON, DeLUCA, DeWEESE, FAIRCHILD, FEESE, FICHTER, FRANKEL, FREEMAN, GEORGE, GORDNER, HARHAI, HERSHEY, HORSEY, HUTCHINSON, JAMES, KELLER, KIRKLAND, LEDERER, LEVDANSKY, LEWIS, MANN, McCALL, McILHATTAN, MELIO, R. MILLER, S. MILLER, MYERS, PETRARCA, PICKETT, READSHAW, ROSS, SAINATO, SATHER, SCHRODER, SCRIMENTI, SEMMEL, SHANER, SOLOBAY, STABACK, STEELMAN, STERN, R. STEVENSON, E. Z. TAYLOR, THOMAS, TIGUE, TRAVAGLIO, TURZAI, WANSACZ, WASHINGTON, WATSON, WILT, YOUNGBLOOD, YUDICHAK AND ZIMMERMAN, JULY 1, 2002
REFERRED TO COMMITTEE ON COMMERCE AND ECONOMIC DEVELOPMENT, JULY 1, 2002
AN ACT 1 Amending the act of June 29, 1996 (P.L.434, No.67), entitled, as 2 amended, "An act to enhance job creation and economic 3 development by providing for an annual financing strategy, 4 for opportunity grants, for job creation tax credits, for 5 small business assistance, for the Small Business Advocacy 6 Council, for a family savings program, for industrial 7 development assistance, for community development bank grants 8 and loans and for tax-exempt bond allocation; conferring 9 powers and duties on various administrative agencies and 10 authorities; further providing for various funds; and making 11 repeals," further providing for transitional provisions 12 relating to eligibility requirements for funding. 13 The General Assembly of the Commonwealth of Pennsylvania 14 hereby enacts as follows: 15 Section 1. Section 1310 of the act of June 29, 1996 16 (P.L.434, No.67), known as the Job Enhancement Act, is amended 17 to read: 18 Section 1310. Transitional provisions.
1 The following eligibility requirements and eligible uses 2 shall apply to all requests for funding received after this 3 chapter becomes effective and before submission of the first 4 annual financing strategy: 5 (1) A small business enterprise with 100 full-time 6 employees or less that proposes to undertake a capital 7 development. 8 (2) (i) The maximum loan amount for land, buildings and 9 machinery and equipment is $200,000 or 50% of the total 10 eligible project costs, whichever is less. The maximum 11 loan amount for working capital is $100,000 or 50% of the 12 total eligible project costs, whichever is less. 13 (ii) Loans used for real estate shall have a 14 repayment period of up to ten years. Loans used for 15 machinery and equipment shall have a repayment period of 16 up to seven years. Loans used for working capital shall 17 have a repayment period of up to three years. In projects 18 where two or more uses of funds are planned, the loan 19 terms may be blended. 20 (iii) [Interest rates shall be fixed at 5%.] The 21 department shall set an interest rate of not less than 22 2%. 23 (iv) All loans must be adequately secured. 24 (3) (i) Applications for assistance under the Capital 25 Loan Fund Act which have been approved prior to the 26 effective date of this chapter will be processed in 27 accordance with the act of July 2, 1984 (P.L.545, 28 No.109), known as the Capital Loan Fund Act. Applications 29 for assistance which have been received but which have 30 not been approved prior to the effective date of this 20020H2786B4208 - 2 -
1 chapter will be evaluated and processed in accordance 2 with this chapter. 3 (ii) Applications for assistance under section 7.13 4 of the act of January 8, 1960 (1959 P.L.2119, No.787), 5 known as the Air Pollution Control Act, section 709 of 6 the act of July 6, 1989 (P.L.169, No.32), known as the 7 Storage Tank and Spill Prevention Act, and the Recycling 8 Incentive Development Account which have been approved 9 prior to the effective date of this chapter shall be 10 processed in accordance with those respective provisions. 11 Applications for assistance which have been received but 12 which have not been approved prior to the effective date 13 of this chapter shall be evaluated and processed in 14 accordance with this chapter. 15 Section 2. This act shall take effect in 60 days. E31L12DMS/20020H2786B4208 - 3 -