PRIOR PRINTER'S NO. 910

PRINTER'S NO. 1138

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, N. NELSON

AND KENYATTA, APRIL 17, 2023

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:

§ 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

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:

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

all of the following:

* * *

(ii) That the borrower's business has been in

* * *

(f) Limitations.--

for which a guarantee certificate has been issued, the

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.

one loan.

(2) AND (3), (C), (D) INTRODUCTORY PARAGRAPH, (2) AND (4), (E)

(1)(II), (V) AND (VI) AND (2) AND (F)(1) OF TITLE 64 OF THE

PENNSYLVANIA CONSOLIDATED STATUTES ARE AMENDED, SUBSECTION (D)

IS AMENDED BY ADDING PARAGRAPHS AND THE SECTION IS AMENDED BY

ADDING A SUBSECTION TO READ:

§ 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]

ELIGIBLE APPLICANTS THAT MAKE LOANS TO LIFE SCIENCES, ADVANCED

DEMONSTRATE ALL OF THE FOLLOWING:

INSTITUTION] ELIGIBLE APPLICANT AND THE NAME AND TITLE OF THE

INDIVIDUAL WHO WILL SERVE AS THE POINT OF CONTACT FOR THE

[COMMERCIAL LENDING INSTITUTION] ELIGIBLE APPLICANT.

[COMMERCIAL LENDING INSTITUTION] ELIGIBLE APPLICANT.

ACTIVITIES ENGAGED IN BY THE [COMMERCIAL LENDING INSTITUTION]

ELIGIBLE APPLICANT AND HOW THE [INSTITUTION] ELIGIBLE

APPLICANT INTENDS TO EXPAND THOSE ACTIVITIES AS A RESULT OF

ITS PARTICIPATION IN THE PROGRAM AUTHORIZED BY THIS SECTION.

(C) ENROLLMENT APPROVAL.--UPON BEING SATISFIED THAT ALL

REQUIREMENTS HAVE BEEN MET, THE BOARD MAY ENROLL THE [COMMERCIAL

LENDING INSTITUTION] ELIGIBLE APPLICANT IN THE PROGRAM

AUTHORIZED BY THIS SECTION, AND, IF ENROLLED, THE AUTHORITY

APPLICANT. THIS PROCEDURE SHALL REQUIRE THAT THE [COMMERCIAL

LENDING INSTITUTION] ELIGIBLE APPLICANT DEMONSTRATE THAT IT

HAS EXHAUSTED ALL AVAILABLE REMEDIES AGAINST THE BORROWER,

OTHER GUARANTORS AND COLLATERAL FOR THE LOAN BEFORE SEEKING

PAYMENT UNDER THE AGREEMENT.

RECOVERED BY THE [COMMERCIAL LENDING INSTITUTION] ELIGIBLE

APPLICANT SUBSEQUENT TO ANY PAYMENT MADE UNDER THE MASTER

GUARANTEE AGREEMENT BY THE AUTHORITY BE REMITTED TO THE

AUTHORITY.

(D) APPLICATION FOR GUARANTEE.--[A COMMERCIAL LENDING

INSTITUTION] AN ELIGIBLE APPLICANT ENROLLED IN THE PROGRAM

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:

OF THE BORROWER AS A RESULT OF THE LOAN.]

AREA WITHIN THIS COMMONWEALTH.

REQUESTED AMOUNT OF THE LOAN, A COPY OF THE [COMMERCIAL

LENDING INSTITUTION'S] ELIGIBLE APPLICANT'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.

(E) APPLICATION REVIEW.--

* * *

(V) THAT THE BORROWER'S BUSINESS IS LOCATED WITHIN

(VI) THAT THE BORROWER AND THE [COMMERCIAL LENDING

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

THE OUTSTANDING PRINCIPAL AMOUNT OF THE LOAN. THE GUARANTEE

WILL] THE AUTHORITY SHALL DETERMINE THE MAXIMUM GUARANTEE

BASED ON A PERCENTAGE OF THE OUTSTANDING PRINCIPAL AMOUNT OF

THE LOAN. THE GUARANTEE SHALL TERMINATE AT THE END OF SEVEN

SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"CERTIFIED ECONOMIC DEVELOPMENT ORGANIZATION." AS DEFINED IN

SECTION 1102 (RELATING TO DEFINITIONS).

"ELIGIBLE APPLICANT." A COMMERCIAL LENDING INSTITUTION,

COMMUNITY DEVELOPMENT FINANCIAL INSTITUTION OR CERTIFIED

ECONOMIC DEVELOPMENT ORGANIZATION.