H0922B1138A00516 MSP:JSL 05/11/23 #90 A00516
AMENDMENTS TO HOUSE BILL NO. 922
Sponsor: REPRESENTATIVE KEPHART
Printer's No. 1138
Amend Bill, page 1, line 3, by striking out "further
providing for" and inserting
repealing provisions relating to
Amend Bill, page 1, line 4, by inserting after "Program"
; and making editorial changes
Amend Bill, page 3, lines 7 through 30; pages 4 through 6,
lines 1 through 30; page 7, lines 1 through 7; by striking out
all of said lines on said pages and inserting
Section 1. Section 1543(b)(8) and (d)(1) of Title 64 of the
Pennsylvania Consolidated Statutes are amended to read:
§ 1543. Indebtedness.
* * *
(b) Program limitations.--Indebtedness incurred by the
authority under subsection (a) shall not, in aggregate, exceed
any of the following:
* * *
[(8) $50,000,000 for the program established in section
1553 (relating to Second Stage Loan Program).]
* * *
(d) Exception.--Subsection (c) shall not apply to the
aggregate amount of indebtedness incurred by the authority,
including through the issuance of bonds, for the following
programs:
[(1) The program established in section 1553.]
* * *
Section 2. Section 1553 of Title 64 is repealed:
[§ 1553. Second Stage Loan Program.
(a) Establishment.--There is established a program to be
known as the Second Stage Loan Program. The program shall
provide loan guarantees to commercial lending institutions that
make loans to life sciences, advanced technology or
manufacturing businesses.
(b) Application for enrollment.--A commercial lending
institution may apply for enrollment in the program authorized
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by this section. The application shall be on the form prescribed
by the board and shall include or demonstrate all of the
following:
(1) The name and address of the commercial lending
institution and the name and title of the individual who will
serve as the point of contact for the commercial lending
institution.
(2) A statement defining the service area of the
commercial lending institution.
(3) A statement describing the commercial lending
activities engaged in by the commercial lending institution
and how the institution intends to expand those activities as
a result of its participation in the program authorized by
this section.
(4) Any other information required by the board.
(c) Enrollment approval.--Upon being satisfied that all
requirements have been met, the board may enroll the commercial
lending institution in the program authorized by this section,
and, if enrolled, the authority shall execute a master guarantee
agreement in favor of the commercial lending institution. In
addition to any other terms and conditions required by the
board, the master guarantee agreement shall provide for the
following:
(1) The procedure for the submission of a claim for
payment by the commercial lending institution. This procedure
shall require that the commercial lending institution
demonstrate that it has exhausted all available remedies
against the borrower, other guarantors and collateral for the
loan before seeking payment under the agreement.
(2) A requirement that a percentage of any moneys
recovered by the commercial lending institution subsequent to
any payment made under the master guarantee agreement by the
authority be remitted to the authority.
(3) Periodic reporting requirements by the commercial
lending institution regarding itself and regarding the loans
for which guarantee certificates have been issued under this
section.
(d) Application for guarantee.--A commercial lending
institution enrolled in the program authorized by this section
may submit an application to the authority for the guarantee of
a proposed loan. The application shall be on the form prescribed
by the board and shall include or demonstrate all of the
following:
(1) The name and address of the borrower, the type of
business the borrower conducts, the location and age of the
business and the names and addresses of the principals of the
borrower.
(2) The number of projected new or retained employees of
the borrower as a result of the loan.
(3) A copy of the borrower's last two years of financial
statements prepared or reported on by an independent
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certified public accountant.
(4) A statement describing the purpose of the loan, the
requested amount of the loan, a copy of the commercial
lending institution's commitment letter and applicable credit
underwriting that supports the repayment of the loan, as well
as the collateral and other guarantees offered by the
borrower to support the loan.
(5) Any other information required by the board.
(e) Application review.--
(1) The board shall review the application to determine
all of the following:
(i) That the borrower owns and operates a life
sciences, advanced technology or manufacturing business.
(ii) That the borrower's business has been in
existence for at least two years but no more than seven
years at the time of application.
(iii) That the borrower is financially responsible
and has the ability to repay the loan.
(iv) That the use of loan proceeds by the borrower
will result in jobs being created or retained within this
Commonwealth.
(v) That the borrower's business is located within
the commercial lending institution's service area and
within this Commonwealth.
(vi) That the borrower and the commercial lending
institution have met all other requirements established
by the board.
(2) Upon being satisfied that all requirements have been
met, the board may approve the guarantee, and, if approved,
the authority shall issue a guarantee certificate for the
loan to the commercial lending institution stating the terms
and amount of the guarantee.
(3) The board may establish a subcommittee composed of
one or more members of the board and staff of the department
to review and approve applications for guarantees under this
section.
(f) Limitations.--
(1) During the first two years of the term of a loan for
which a guarantee certificate has been issued, the guarantee
may not exceed 50% of the outstanding principal amount of the
loan. From the end of year two through either the end of year
seven or the end of the term of the loan, whichever occurs
first, the guarantee may not exceed 25% of the outstanding
principal amount of the loan. The guarantee will terminate at
the end of seven years.
(2) At no time may a guarantee exceed $1,000,000 for any
one loan.]
Section 3. This act shall take effect in 60 days.
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See A00516 in
the context
of HB0922