PRINTER'S NO. 3746
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
2508
Session of
2020
INTRODUCED BY CIRESI, HANBIDGE, GALLOWAY, ULLMAN, WILLIAMS,
DELLOSO, DeLUCA, McCLINTON, SHUSTERMAN, WEBSTER, SANCHEZ,
KORTZ, KENYATTA, OTTEN AND TOMLINSON, MAY 13, 2020
REFERRED TO COMMITTEE ON COMMERCE, MAY 13, 2020
AN ACT
Providing for loan deferrals, repayment plans and loan
modifications by certain financial institutions for small
businesses during the COVID-19 disaster emergency.
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 COVID-19
Banking on Small Business Act.
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:
"COVID-19 disaster emergency." The proclamation of disaster
emergency issued by the Governor on March 6, 2020, published at
50 Pa.B. 1644 (March 21, 2020), and any renewal of the state of
disaster emergency.
"Credit union." A Pennsylvania State-chartered credit union.
"Department." The Department of Banking and Securities of
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the Commonwealth.
"Licensee." A corporation, person or any other type of
business entity required to be licensed by the Department of
Banking and Securities. The term does not include a licensee or
registrant under the act of December 5, 1972 (P.L.1280, No.284),
known as the Pennsylvania Securities Act of 1972.
"Secretary." The Secretary of Banking and Securities of the
Commonwealth.
"Small business." Any for-profit business, industry or trade
operating with a physical location in this Commonwealth,
regardless of whether that physical location is open to the
public, and employs not more than 100 individuals.
Section 3. COVID-19 Banking on Small Business Program.
(a) Establishment.--The COVID-19 Banking on Small Business
Program is established within the department to provide
cooperation between small businesses and State-chartered banks,
credit unions and licensees during the COVID-19 disaster
emergency. State-chartered banks, credit unions and licensees
may offer loan deferrals, repayment plans and loan modifications
to eligible small businesses as provided under this section.
(b) Eligibility.--A small business shall be eligible for a
loan deferral, repayment plan or loan modification under this
section if:
(1) The small business demonstrates that it has been
adversely impacted by the COVID-19 disaster emergency.
(2) The small business is current on its loan or
mortgage payments with the State-chartered bank, credit union
or licensee.
(c) Loan deferral, repayment plant or loan modification.--To
ensure a small business does not fall behind on loan or mortgage
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payments, at the request of a small business, a State-chartered
bank, credit union or licensee may provide a loan deferral,
repayment plan or loan modification to a small business.
(d) Conditions.--If a small business receives a loan
deferral, repayment plan or loan modification under this section
and fails to comply with the terms of the agreement relating to
the loan deferral, repayment plan or loan modification, the
small business shall be subject to any penalties and costs
established by the State-chartered banks, credit unions or
licensees.
(e) Reporting.--State-chartered banks, credit unions and
licensees shall report information on each loan deferral,
repayment plan or loan modification provided under this section
to the department in a form and manner prescribed by the
department.
(f) Expiration.--This act shall expire two years after the
effective date of this section.
Section 4. Effective date.
This act shall take effect immediately.
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