See other bills
under the
same topic
PRINTER'S NO. 1638
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1115
Session of
2020
INTRODUCED BY HUGHES, BLAKE, SANTARSIERO, FARNESE, FONTANA,
SCHWANK, BREWSTER, DINNIMAN, COSTA, A. WILLIAMS, KEARNEY AND
STEFANO, APRIL 15, 2020
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
APRIL 15, 2020
AN ACT
Amending Title 64 (Public Authorities and Quasi-Public
Corporations) of the Pennsylvania Consolidated Statutes, in
Commonwealth Financing Authority, further providing for First
Industries Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1552(a) and (f) of Title 64 of the
Pennsylvania Consolidated Statutes are amended and the section
is amended by adding subsections to read:
§ 1552. First Industries Program.
(a) Establishment.--There is established a program to be
known as the First Industries Program. The program shall:
(1) provide financial assistance for projects related to
tourism and agriculture located within this Commonwealth. The
board shall allocate funds made available to the program
among the different methods of financing authorized in this
section[.]; and
(2) while under the proclamation of disaster emergency
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
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, provide loan guarantees to commercial
lending institutions that make loans to manufacturing
businesses to convert or retrofit existing manufacturing
facilities to enable the business to manufacture personal
protective equipment or equipment necessary to manufacture
personal protective equipment needed by health care
professionals to respond to the COVID-19 pandemic of 2020.
* * *
(b.1) Application for enrollment . -- A commercial lending
institution may apply for enrollment in the program to provide
loan guarantees to commercial lending institutions that make
loans to manufacturing businesses to convert or retrofit
existing manufacturing facilities to enable the business to
manufacture personal protective equipment or equipment necessary
to manufacture personal protective equipment needed by health
care professionals to respond to the COVID-19 pandemic of 2020
and authorized by this section. The application shall be on the
form prescribed by the board and shall include or demonstrate
all of the following:
(1) The name and address of the commercial lending
institution and the name and title of the individual who will
serve as the point of contact for the commercial lending
institution.
(2) A statement defining the service area of the
commercial lending institution.
(3) A statement describing the commercial lending
activities engaged in by the commercial lending institution
and how the institution intends to assist manufacturers in
20200SB1115PN1638 - 2 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
responding to the COVID-19 pandemic as a result of its
participation in the program authorized by this section.
(4) Any other information required by the board.
(b.2) Enrollment approval . -- Upon being satisfied that all
requirements have been met, the board may enroll the commercial
lending institution in the program to provide loan guarantees to
commercial lending institutions that make loans to manufacturing
businesses to convert or retrofit existing manufacturing
facilities to enable the business to manufacture personal
protective equipment or equipment necessary to manufacture
personal protective equipment needed by health care
professionals to respond to the COVID-19 pandemic of 2020 for
purposes of providing loans authorized by this section, and, if
enrolled, the authority shall execute a master guarantee
agreement in favor of the commercial lending institution. In
addition to any other terms and conditions required by the
board, the master guarantee agreement shall provide for the
following:
(1) The procedure for the submission of a claim for
payment by the commercial lending institution. This procedure
shall require that the commercial lending institution
demonstrate that it has exhausted all available remedies
against the borrower, other guarantors and collateral for the
loan before seeking payment under the agreement.
(2) A requirement that a percentage of any money
recovered by the commercial lending institution subsequent to
any payment made under the master guarantee agreement by the
authority be remitted to the authority.
(3) Periodic reporting requirements by the commercial
lending institution regarding itself and regarding the loans
20200SB1115PN1638 - 3 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
for which guarantee certificates have been issued under this
section.
* * *
(e.3) Application for guarantee.--A commercial lending
institution enrolled in the program to provide loan guarantees
to commercial lending institutions that make loans to
manufacturing businesses to convert or retrofit existing
manufacturing facilities to enable the business to manufacture
personal protective equipment or equipment necessary to
manufacture personal protective equipment needed by health care
professionals to respond to the COVID-19 pandemic of 2020
authorized by this section may submit an application to the
authority for the guarantee of a proposed loan. The application
shall be on the form prescribed by the board and shall include
or demonstrate all of the following:
(1) The name and address of the borrower, the type of
business the borrower conducts, the location and age of the
business and the names and addresses of the principals of the
borrower.
(2) A copy of the borrower's last two years of financial
statements prepared or reported on by an independent
certified public accountant.
(3) A statement describing the purpose of the loan, the
requested amount of the loan, a copy of the commercial
lending institution's commitment letter and applicable credit
underwriting that supports the repayment of the loan, as well
as the collateral and other guarantees offered by the
borrower to support the loan.
(4) Any other information required by the board.
(e.4) Application review.--The following shall apply to the
20200SB1115PN1638 - 4 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
review of applications:
(1) The board shall review the application to determine
all of the following:
(i) That the borrower owns and operates a
manufacturing business.
(ii) That the borrower is financially responsible
and has the ability to repay the loan.
(iii) That the loan proceeds will be used by the
borrower for costs associated with converting or
retrofitting a manufacturing facility to allow the
production of personal protective equipment or equipment
necessary to manufacture personal protective equipment
for use by health care professionals to assist the
Commonwealth in responding to the COVID-19 pandemic of
2020.
(iv) That the borrower's business is located within
this Commonwealth.
(v) That the borrower and the commercial lending
institution have met all other requirements established
by the board.
(2) Upon being satisfied that all requirements have been
met, the board may approve the guarantee, and, if approved,
the authority shall issue a guarantee certificate for the
loan to the commercial lending institution stating the terms
and amount of the guarantee.
(3) The board may establish a subcommittee composed of
one or more members of the board and staff of the department
to review and approve applications for guarantees under this
subsection and subsection (e.3).
(f) Limitations.--
20200SB1115PN1638 - 5 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
(1) No more than $10,000,000 of the funds available for
the program authorized by this section may be used for
planning grants awarded under subsection (c).
(2) At least two-thirds of the funds available for the
program authorized by this section shall be used for
financing of projects related to agriculture.
(3) For a loan guarantee relating to the program
providing loan guarantees to commercial lending institutions
that make loans to manufacturing businesses to convert or
retrofit existing manufacturing facilities to enable the
business to manufacture personal protective equipment needed
by health care professionals to respond to the COVID-19
pandemic of 2020, the following shall apply:
(i) The guarantee may not exceed 90% of the
outstanding principal amount of the loan.
(ii) At no time may a guarantee exceed $3,000,000
for any one loan.
(g) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Personal protective equipment." Any product deemed
necessary by the Secretary of Health.
Section 2. This act shall take effect immediately.
20200SB1115PN1638 - 6 -
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23