PRINTER'S NO. 2266
No. 1769 Session of 1983
INTRODUCED BY WOZNIAK, LINTON, STEWART, FATTAH, LETTERMAN,
RYBAK, BATTISTO, BELOFF, DeLUCA, KOWALYSHYN, JOHNSON,
ALDERETTE, KOSINSKI, LASHINGER, VAN HORNE, FISCHER, CIVERA,
PERZEL, DALEY, MILLER, GALLAGHER, COLAFELLA, ZWIKL, BURD,
KASUNIC, SEVENTY, DIETZ, GRUITZA, WAMBACH, COWELL, HALUSKA
AND DeWEESE, DECEMBER 5, 1983
REFERRED TO COMMITTEE ON BUSINESS AND COMMERCE,
DECEMBER 5, 1983
AN ACT
1 Providing incentives for business enterprises in this
2 Commonwealth; providing for access to capital; providing for
3 terms and administration of loans to business enterprises at
4 reduced interest rates; providing for repayment of loans; and
5 making an appropriation.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Business
10 Incentive Act.
11 Section 2. Definitions.
12 The following words and phrases when used in this act shall
13 have the meanings given to them in this section unless the
14 context clearly indicates otherwise:
15 "Access to capital." The ability or opportunity to obtain
16 necessary funding for the development or expansion of a business
17 enterprise which is already in existence or for the creation of
1 new business enterprise or opportunity.
2 "Business enterprise." Any commercial, industrial or other
3 entity which does any business, makes any profit or employs any
4 person in an area designated as an enterprise zone in this
5 Commonwealth.
6 Section 3. Access to capital.
7 Any business enterprise in this Commonwealth which qualifies,
8 subject to the provisions of this act, may apply for a loan if
9 the enterprise is located or doing business in an area of this
10 Commonwealth designated as an enterprise zone.
11 Section 4. Terms of loan agreement.
12 (a) Matching funds.--Upon the approval of any loan
13 application by a financial institution, the applicant shall
14 obtain an amount of money equal to the amount which the
15 applicant is investing in the enterprise from the applicant's
16 own private resources.
17 (b) Interest rate.--All loans shall be processed at a rate
18 of one-third of the prevailing interest rate up to $50,000.
19 Section 5. Procedure.
20 (a) Loans.--All business enterprise loans shall be processed
21 and administered by the Pennsylvania Industrial Development
22 Authority.
23 (b) Administration.--The provisions of this act shall be
24 administered by the Pennsylvania Industrial Development
25 Authority.
26 Section 6. Qualification.
27 Any person or business enterprise which obtains a business
28 enterprise loan shall be required to use the funds for the
29 creation or expansion of business or business opportunities.
30 Section 7. Repayment of loan.
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1 All loans shall be repaid subject to the terms of the loan
2 agreement.
3 Section 8. Appropriation.
4 The sum of $7,000,000 is hereby appropriated from the
5 Industrial Development Fund to be used for the administration
6 and enforcement of this act.
7 Section 9. Effective date.
8 This act shall take effect in 60 days.
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