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Senate Co-Sponsorship Memoranda
Senate of Pennsylvania
Session of 2015 - 2016
Regular Session
MEMORANDUM
| Posted: | January 21, 2015 09:37 AM |
|---|---|
| From: | Senator Lisa Baker |
| To: | All Senate members |
| Subject: | Small Business Disaster Assistance Act |
| I will soon be introducing legislation to help small businesses that have suffered losses as a result of a natural or manmade disaster. This legislation expands upon the Small Disaster Assistance Program enacted as part of Senate Bill 720 of last session, now Act 187 of 2014. That new law will extend grants to eligible public entities, such as townships and boroughs, that are hit hard by localized flash floods, hurricanes, snowstorms and other disasters. This bill will provide aid in the form of loans to help small businesses through the establishment of a $10 million small business loan program within the Department of Community and Economic Development (DCED). At present, disaster-damaged businesses are eligible for public assistance via loans only at the federal level, through the U.S. Small Business Administration (SBA). After the storms of Hurricane Irene and Tropical Storm Lee in late 2011, many small businesses requested a lower interest rate on these loans, or a state program to help. Lacking these options, many businesses were forced to close their doors, including community banks, mom-and-pop restaurants, and small specialty retail stores, as the cost to clean up, rebuild and remediate overwhelmed their limited resources. This bill is patterned after legislation passed by the Senate after Hurricane Irene, but stalled in the House (Senate Bill 1297 of 2011). It is also similar to aid extended after the blizzard, thaw and flash flooding of 1996, enacted during a special session called to address flood damage. Under this bill, to be eligible for a loan of between $10,000 and $100,000, a small business would have to be located in a county in which a state or federal disaster declaration has been issued; be current with its state and federal tax obligations; and have suffered a loss that exceeds private insurance coverage and federal loans. I hope you will join me in this important disaster relief reform for small businesses. Thank you for your consideration |