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| PRIOR PRINTER'S NOS. 1684, 1749 | PRINTER'S NO. 1781 |
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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY BAKER, YUDICHAK, GORDNER, SOLOBAY, FERLO, GREENLEAF, KASUNIC, LEACH, SCHWANK, WILLIAMS, BLAKE, BOSCOLA, COSTA, ARGALL, BROWNE, BREWSTER, YAW AND BRUBAKER, OCTOBER 18, 2011 |
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| SENATOR CORMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED, NOVEMBER 14, 2011 |
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| AN ACT |
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1 | Providing for a Small Business Flood Relief Program; making an |
2 | appropriation; and providing for termination of the program. |
3 | The General Assembly of the Commonwealth of Pennsylvania |
4 | hereby enacts as follows: |
5 | Section 1. Short title. |
6 | This act shall be known and may be cited as the Small |
7 | Business Flood Relief Act of 2011. |
8 | Section 2. Declaration of policy. |
9 | (1) Hurricane Irene and Tropical Storm Lee and the |
10 | resulting flood emergency impacted many small businesses of |
11 | this Commonwealth, causing substantial economic and physical |
12 | damage. |
13 | (2) Small businesses are an integral part of communities |
14 | and a vital component to Pennsylvania's economy. |
15 | (3) Federal emergency declarations designated certain |
16 | areas as eligible for business disaster assistance. |
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1 | (4) Pursuant to section 17(b) of Article VIII of the |
2 | Constitution of Pennsylvania, the Commonwealth should provide |
3 | additional assistance to certain small businesses to |
4 | supplement compensation received from private insurance and |
5 | the Federal Government. |
6 | Section 3. Definitions. |
7 | The following words and phrases when used in this act shall |
8 | have the meanings given to them in this section unless the |
9 | context clearly indicates otherwise: |
10 | "Adjusted loss." The difference between: |
11 | (1) eligible loss; and |
12 | (2) covered loss. |
13 | "Covered loss." Any amount received by or due the recipient |
14 | from private insurance and Federal loans on account of an |
15 | eligible loss. The term does not include an insurance deductible |
16 | paid by the recipient. |
17 | "Department." The Department of Community and Economic |
18 | Development of the Commonwealth. |
19 | "Eligible loss." Damage caused as a result of Hurricane |
20 | Irene and Tropical Storm Lee to a small business and certified |
21 | by the Pennsylvania Emergency Management Agency. |
22 | "Program." The Small Business Flood Relief Program |
23 | established under section 6. |
24 | "Small business." A person that is engaged in a for-profit |
25 | enterprise and that employs 100 or fewer individuals. |
26 | "Working capital." Capital used by a small business for |
27 | operations, excluding fixed assets and machinery and equipment. |
28 | Section 4. Powers and duties of department. |
29 | The department shall adopt guidelines to administer the |
30 | program. |
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1 | Section 5. Restricted account. |
2 | A restricted account is established in the State Treasury to |
3 | be known as the Small Business Flood Relief Account. The account |
4 | shall be for the purpose of making loans that shall be provided |
5 | to small businesses eligible for assistance under the program |
6 | authorized under section 6 and be funded by the appropriation |
7 | contained in section 7 from which loans to small businesses |
8 | shall be provided by the department to eligible small |
9 | businesses. |
10 | Section 6. Small Business Flood Relief Program. |
11 | (a) Establishment.--There is established the Small Business |
12 | Flood Relief Program. |
13 | (b) Eligibility.--To be eligible for a loan, a small |
14 | business must meet all of the following: |
15 | (1) Be located in a county that has been declared a |
16 | Federal disaster area as a result of Hurricane Irene or |
17 | Tropical Storm Lee. |
18 | (2) Suffered an eligible loss. |
19 | (3) Be a small business. |
20 | (4) Be registered and in good standing with the |
21 | Department of Revenue in terms of: |
22 | (i) Having filed State tax returns. |
23 | (ii) Not being delinquent in the payment of State |
24 | taxes. |
25 | (c) Procedure.-- |
26 | (1) A small business shall apply for a loan under this |
27 | section by or on October 2, 2012, on a form furnished by the |
28 | department, setting forth the facts establishing eligibility. |
29 | An application under this paragraph is subject to 18 Pa.C.S. |
30 | § 4904 (relating to unsworn falsification to authorities). |
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1 | (2) The department shall investigate the application to |
2 | determine eligibility. |
3 | (3) Within 30 days of receipt of the application, the |
4 | department shall make an eligibility and loan determination. |
5 | (d) Loans.-- |
6 | (1) The minimum loan amount to be awarded is $10,000 and |
7 | the maximum loan amount to be awarded under this program is |
8 | $100,000 or the adjusted loss, whichever is less. |
9 | (2) Loan proceeds may be used by a small business under |
10 | this program for working capital, inventory, equipment |
11 | purchase and real property improvements, if the real property |
12 | is owned by the borrower, but cannot be used for refinancing |
13 | existing debt or outstanding debt payments. Equipment and |
14 | real property must be located within this Commonwealth. |
15 | (3) Loan proceeds must be drawn within 60 days of the |
16 | loan approval date. Failure to draw funds within the required |
17 | time period will result in revocation of the loan. |
18 | (4) Loan applications will be reviewed and loans |
19 | approved on a first-come, first-served basis until available |
20 | funds are exhausted. |
21 | (e) Loan terms.-- |
22 | (1) A loan for working capital or inventory shall be |
23 | made at an interest rate not to exceed 3% for the term of the |
24 | loan. The repayment period shall not exceed five years. |
25 | (2) A loan for equipment purchase or real property |
26 | improvement shall be made at an interest rate not to exceed |
27 | 1% for the term of the loan. The repayment period shall not |
28 | exceed 10 years. |
29 | Section 7. Guidelines. | <-- |
30 | The department shall adopt guidelines to implement and |
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1 | operate the program. The guidelines may include the following: |
2 | (1) Repayment schedules. |
3 | (2) Collateral or lien position requirements. |
4 | (3) Other requirements deemed appropriate by the |
5 | department. |
6 | Section 7 8. Appropriation. | <-- |
7 | The sum of $15,000,000 $10,000,000 is appropriated to the | <-- |
8 | department to carry out the program under this act. |
9 | Section 8 9. Termination. | <-- |
10 | The program established under section 6 and the Small |
11 | Business Flood Relief Account established under section 5 shall |
12 | terminate on December 31, 2012, and any money remaining in the |
13 | account shall be transferred to the General Fund. |
14 | Section 9 10. Effective date. | <-- |
15 | This act shall take effect immediately. |
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