PRINTER'S NO. 820
THE GENERAL ASSEMBLY OF PENNSYLVANIA
INTRODUCED BY YUDICHAK, KASUNIC, STACK, ERICKSON, TEPLITZ, BREWSTER, FONTANA, RAFFERTY, GREENLEAF, BAKER, COSTA, WASHINGTON, TARTAGLIONE, SOLOBAY, BROWNE, FARNESE AND MENSCH, APRIL 3, 2013
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT, APRIL 3, 2013
9§ 1559. Veteran-owned Business Loan Guarantee Program.
10(a) Establishment.--The Veteran-owned Business Loan
11Guarantee Program is established. The program shall provide loan
12guarantees to commercial lending institutions that make loans to
14(b) Application for enrollment.--A commercial lending
15institution may apply for enrollment in the program authorized
16under this section. The application shall be on the form
17prescribed by the board and shall include or demonstrate all of
8(3) A statement describing the commercial lending
9activities engaged in by the commercial lending institution
10and how the commercial lending institution intends to expand
11the activities as a result of its participation in the
12program authorized by this section.
13(4) Any other information required by the board.
14(c) Enrollment approval.--Upon being satisfied that all
15requirements have been met, the board may enroll the commercial
16lending institution in the program authorized under this section
17and, if enrolled, the authority shall execute a master guarantee
18agreement in favor of the commercial lending institution. In
19addition to any other terms and conditions required by the
20board, the master guarantee agreement shall provide for the
22(1) The procedure for the submission of a claim for
23payment by the commercial lending institution. The procedure
24shall require that the commercial lending institution
25demonstrate that it has exhausted all available remedies
26against the borrower, other guarantors and collateral for the
27loan before seeking payment under the agreement.
1authority be remitted to the authority.
6(d) Application for guarantee.--A commercial lending
7institution enrolled in the program authorized under this
8section may submit an application to the authority for the
9guarantee of a proposed loan. The application shall be on the
10form prescribed by the board and shall include or demonstrate
11all of the following:
21(4) A statement describing the purpose of the loan, the
22requested amount of the loan, a copy of the commercial
23lending institution's commitment letter and applicable credit
24underwriting that supports the repayment of the loan,
25including the collateral and other guarantees offered by the
26borrower to support the loan.
27(5) Any other information required by the board.
28(e) Application review.--
14(2) Upon being satisfied that all requirements have been
15met, the board may approve the guarantee and, if approved,
16the authority shall issue a guarantee certificate for the
17loan to the commercial lending institution stating the terms
18and amount of the guarantee.
3Section 2. This act shall take effect in 60 days.