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PRINTER'S NO. 283
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
284
Session of
2015
INTRODUCED BY THOMAS, LONGIETTI, COHEN, KINSEY AND V. BROWN,
FEBRUARY 2, 2015
REFERRED TO COMMITTEE ON COMMERCE, FEBRUARY 2, 2015
AN ACT
Establishing the Pennsylvania Small Business Forgivable Loan
Program; and conferring powers and imposing duties on the
Department of Community and Economic Development.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Small Business Forgivable Loan Program Act.
Section 2. Declaration of purpose.
The primary purpose of the Pennsylvania Small Business
Forgivable Loan Program is to strengthen small businesses in
low-income to moderate-income neighborhoods across this
Commonwealth. The program intends to provide assistance to:
(1) Support a vital mix of small businesses that
contribute to a successful commercial corridor.
(2) Help small businesses grow and improve the quality
of their goods and services to allow them to become social
anchors in terms of employment and neighborhood
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stabilization.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Department." The Department of Community and Economic
Development of the Commonwealth.
"Eligible improvements." The term includes, but is not
limited to, improvements made to, or addition of, any of the
following:
(1) Security systems.
(2) Telephone systems.
(3) Alarm systems.
(4) Point of sale equipment.
(5) Kitchen equipment.
(6) Computer ordering systems.
(7) Millwork.
(8) Flooring.
(9) Lighting.
(10) Sound systems.
(11) Theater seating.
(12) Display of furnishings and shelving.
(13) HVAC equipment.
(14) Coolers and refrigeration units.
(15) Specialty piping, not including normal plumbing
expenditures.
(16) Any other similar improvement imperative for
growth.
"Program." The Pennsylvania Small Business Forgivable Loan
Program established under section 4.
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"Qualified applicant." A small business that:
(1) is located within an eligible commercial corridor,
as determined by the department; or
(2) will be located within an eligible commercial
corridor, as determined by the department, no later than six
months after the applicant is approved for a loan under the
program.
Section 4. Establishment of program.
The Pennsylvania Small Business Forgivable Loan Program is
established to help small businesses make eligible improvements
in a new location or an existing location. The program shall be
administered by the department.
Section 5. Requirements for program.
(a) Application.--The department shall establish a process
for qualified applicants to apply and be approved for
participation in the program. The department may require
applicants to provide certain information, including, but not
limited to:
(1) A business plan.
(2) Various financial documents.
(3) Any other documentation the department deems
necessary.
(b) Evaluation.--Applications shall be evaluated by the
department on a competitive basis using a variety of criteria,
including, but not limited to, the following:
(1) Whether the project will result in any of the
following:
(i) Enhancement of an existing cluster of retail,
food or creative businesses.
(ii) Generation of increased foot traffic to a
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commercial corridor by attracting or enhancing a business
that will serve as a destination for new visitors.
(iii) Improvement of the retail mix found within a
commercial corridor by starting a new business that meets
an identified, unmet need for specific goods and
services.
(2) Whether financial feasibility and equity investment
from the applicant match or exceed the loan amount.
(3) Whether the applicant has demonstrated community
support.
(4) Whether the project will impact job retention and
job creation and the effects of that impact.
(c) Amount.--The amount of a loan issued under the program
shall not be less than $25,000 nor more than $50,000.
(d) Forgiveness.--The following shall apply:
(1) A loan issued under the program shall be forgiven
provided the recipient meets the guidelines of the program,
as determined by the department, for five years.
(2) If the recipient does not meet the guidelines of the
program for five years, the recipient shall repay the amount
of the loan to the department within a period of five years.
The principal of the loan shall accrue interest beginning at
the time the recipient fails to meet the guidelines of the
program. The department shall use the money which is repaid
to make future loans under the program.
Section 6. Funding.
Loans issued under the program may be made to the extent that
funds are appropriated by the General Assembly or available from
other sources and are sufficient to cover the administration of
the program.
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Section 7. Annual report.
(a) Development of report.--The department shall publish a
report by December 31, 2016, and every year thereafter for the
immediately preceding fiscal year. The report shall provide
information regarding the operation of the program, including:
(1) The number of program applications received and
approved by the department.
(2) The amount of each loan issued under the program by
the department.
(3) Any department recommendations for improvements and
adjustments to program guidelines.
(b) Submission.--The annual report shall be submitted to the
Governor, the chairman and minority chairman of the
Appropriations Committee of the Senate, the chairman and
minority chairman of the Community, Economic and Recreational
Development Committee of the Senate, the chairman and minority
chairman of the Appropriations Committee of the House of
Representatives and the chairman and minority chairman of the
Commerce Committee of the House of Representatives.
Section 8. Tax applicability.
Loan forgiveness under this act shall not be considered
taxable income for purposes of Article III of the act of March
4, 1971 (P.L.6, No.2), known as the Tax Reform Code of 1971.
Section 9. Responsibility of the department.
The department shall administer the program and shall adopt
such regulations, guidelines, policies, procedures and forms as
are necessary and not inconsistent with the provisions of this
act.
Section 10. Effective date.
This act shall take effect in 90 days.
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