PRINTER'S NO. 3597
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2425
Session of
2020
INTRODUCED BY TOOHIL, BARRAR, POLINCHOCK, BURGOS, SOLOMON,
ROZZI, PICKETT, LEE, HILL-EVANS, WARREN, RYAN, READSHAW AND
FRANKEL, APRIL 21, 2020
REFERRED TO COMMITTEE ON COMMERCE, APRIL 21, 2020
AN ACT
Providing for forbearance on principal repayment on economic
development loans during the COVID-19 crisis.
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 Department of
Community and Economic Development Relief Act of 2020.
Section 2. 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.
"Economic development loan." A Pennsylvania Industrial
Development Authority loan existing on the effective date of
this section.
"Small business." Any business currently issued an economic
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development loan.
Section 3. Forbearance.
(a) General rule.--Notwithstanding any other provision of
law to the contrary, the department may grant forbearance on
principal repayment on economic development loans issued by the
department to small businesses for a period of up to six months
beginning on April 1, 2020.
(b) Payment status.--Any small business which chooses to
elect forbearance shall be considered to have been current on
payments during the forbearance period under subsection (a) so
as to not negatively impact future requests for borrowing.
(c) Increased payments.--After forbearance under this
section has ended, the department shall increase the monthly
payment of the principal of an economic development loan at an
amount sufficient to ensure that the economic development loan
is paid off as scheduled.
(d) Original terms of loan.--Except as provided under
subsections (a) and (c), the terms of an economic development
loan accepted at origination shall not change as a result of
forbearance under this section.
Section 4. Effective date.
This act shall take effect immediately.
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