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PRINTER'S NO. 910
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE BILL
No.
922
Session of
2023
INTRODUCED BY SHUSTERMAN, SANCHEZ, MADDEN, CIRESI, GALLOWAY,
HILL-EVANS, BURGOS, T. DAVIS, GUENST, INNAMORATO AND
N. NELSON, APRIL 17, 2023
REFERRED TO COMMITTEE ON COMMERCE, APRIL 17, 2023
AN ACT
Amending Title 64 (Public Authorities and Quasi-Public
Corporations) of the Pennsylvania Consolidated Statutes, in
Commonwealth Financing Authority, further providing for
Second Stage Loan Program.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 1553(a), (d)(2), (e)(1)(ii) and (f) of
Title 64 of the Pennsylvania Consolidated Statutes are amended
and subsection (d) is amended by adding a paragraph to read:
ยง 1553. Second Stage Loan Program.
(a) Establishment.--There is established a program to be
known as the Second Stage Loan Program. The program shall
provide loan guarantees to commercial lending institutions that
make loans to life sciences, advanced technology or
manufacturing businesses located within this Commonwealth.
* * *
(d) Application for guarantee.--A commercial lending
institution enrolled in the program authorized by this section
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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:
* * *
(2) [The number of projected new or retained employees
of the borrower as a result of the loan.] That the use of the
loan proceeds by the borrower will result in jobs being
created or retained within this Commonwealth and an estimate
as to the number of projected new or retained employees as a
result of the loan.
(2.1) A statement that the borrower's business is
located within the commercial lending institution's service
area within this Commonwealth.
* * *
(e) Application review.--
(1) The board shall review the application to determine
all of the following:
* * *
(ii) That the borrower's business has been in
existence for at least two years [but no more than seven
years] at the time of application.
* * *
(f) Limitations.--
(1) [During the first two years of the term of a loan
for which a guarantee certificate has been issued, the
guarantee may not exceed 50% of the outstanding principal
amount of the loan. From the end of year two through either
the end of year seven or the end of the term of the loan,
whichever occurs first, the guarantee may not exceed 25% of
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the outstanding principal amount of the loan. The guarantee
will] The maximum guarantee amount and percentage shall be
determined by the authority and shall terminate at the end of
seven years.
(2) At no time may a guarantee exceed $1,000,000 for any
one loan.
Section 2. This act shall take effect in 60 days.
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